Online security is a major concern for businesses, regardless of the industry they operate in. From telecommunication to finance, every sector needs to make sure that they comply with global security protocols. This helps them in reducing fraud and scams within their networks. Business verification is one of the crucial aspects that not only protects the business owners but also their clients and extensive customer base. The statistics show that fraud is increasing each passing year, with a major loss of $30 billion recorded from which $12 billion was from the use alone. Business verification solutions allow firms to stay extra vigilant in the modern landscape.
This blog will discuss the core aspects of Know Your Business (KYB) solutions and will present a guide to businesses, especially startups to incorporate business verification solutions across their networks.
What is Digital Business Verification – A Brief Intro
Gone are the days of traditional business verification practices, when firms used paper-based documents to verify the authenticity of other businesses operating in the market. With the increase in technology adoption, firms can easily verify firms, from fully developed large-scale enterprises to new startups, in just a few seconds using digital business verification. In this process, all the traditional steps of document verification, UBO identification, and business address confirmation are carried out online using technology. It is much more reliable and secure compared to old methods. Also, digital business verification adds complete transparency to each operation, reducing the chances of fraud.
Why Business Verification is Crucial for Firms Especially Startups
There are many reasons for incorporating business verification solutions into the organizational network. It not only helps firms determine the authenticity of other companies but also helps in the verification of each individual involved in the company assets. Here are the top five reasons businesses, especially startups, should invest in business verification solutions.
The verification of business is not just for security and compliance, it builds credibility all around the network. This process allows firms to exchange all the necessary information that enables them to build a credible network of communication and trading. In the long run, this helps them achieve their objectives much faster and helps in financial as well as business success. Without a proper business verification protocol in place, firms don’t know who they are dealing with and this can lead to chances of fraud and other problems such as data and privacy leaks.
Forms Long Term Partnerships
With a proper business verification check in place, firms can enter confident and long-term partnerships with new clients across the industry. It helps streamline the new business onboarding process, reducing the time and cost consumed on traditional verifications. With business verification, firms can stay away from shell companies and networks even after interacting with them as the due diligence part of business verification is there to help.
Protects Business Resources
Another main reason for verifying businesses is the protection of the firm’s resources which include financial, workforce, privacy and data sources. Fraudsters can take advantage of anything they get by making a fake presence and operating illegally. They always try to enter the business network by using a fake business network with forged documents that traditional verification techniques do not verify quickly. Once they are in the business, they exploit all the crucial aspects such as privacy violation and data theft to gain an advantage. Sometimes they also threaten the business owners for their illicit means. Using a proper digital business verification solution can help avoid these scenarios as it verifies the business owners’ and stakeholder data in real-time.
Saves Time and Costs on Manual Solutions
The traditional solutions for verifying businesses are very time-consuming and cost-ineffective. The paper-based verification process can take days to complete and will also increase the onboarding time of new business. This spikes the cost graph of the firm and makes it a bad experience for new clients. On the other hand, digital business verification is a one-time process at the start which makes it easier for businesses to verify new clients on the go.
Ensures Global Compliance
With the increasing threat of fraud across every digital sector, global authorities have made strict protocols to counter these fraud attempts. Compliances like Anti-Money Laundering (AML) and Know Your Customer (KYC) are necessary for every new business onboarding. With a compliant digital business verification solution, firms can easily onboard new clients across their networks while also complying with global laws. All due to digital business verification solutions.
In conclusion, business verification is now more than necessary as fraudsters are coming up with new ways to breach business networks. They are equipped with tech-powered tactics that traditional business verification checks cannot counter, so every organization must have a business verification solution across their channels.