Onboarding Friction for PSPs: Balancing KYC/KYB with Conversion

Curious to hear others' experiences regarding the KYC/KYB process for onboarding new merchants with PSPs. We're consistently seeing a high drop-off rate at the identity verification stage, particularly for smaller e-commerce operations that might not have a dedicated compliance team. It feels like there's a delicate balance between robust regulatory adherence and a smooth user experience that doesn't kill conversion.

Specifically, what strategies or tooling have you found effective in streamlining KYB without compromising the necessary checks? Are there certain data points that consistently cause hangups? We're evaluating a few new identity verification solutions, but the promise often exceeds the real-world impact. Any insights on maintaining high conversion while satisfying AML/CTF obligations would be valuable.