Onboarding Friction with Smaller Brokers for Alt-Fi Liquidity
Curious if others are seeing increased friction during KYB with some of the smaller, but well-capitalized, brokers offering access to alternative finance liquidity pools. Seems like the bar for due diligence has risen considerably in the last 12-18 months, even for established entities. It's slowing down deal flow significantly, and I'm wondering if there are any particular jurisdictions or types of PSPs that seem to streamline this better without compromising on regulatory compliance. We're talking 3-4 week turnarounds just to get to a point of initial funding, which is a drag on deployment schedules.
We've seen similar issues, particularly with non-traditional asset classes. The compliance departments seem to be under increased pressure, making even routine KYB a drawn-out affair. It's frustrating when you're trying to move quickly on opportunities.