Cryptocurrency Platform Reduces Business Application Review Time By 25% Despite 95% Increase in Volume
The Company offers crypto-native financial services to both businesses and consumers. They aim to provide a seamless digital experience while still maintaining rigorous compliance standards. Already a trusted KYC solution provider for consumer accounts, the Company needed the same robust solution for business onboarding as KYB is essential to validating new business customers and mitigating fraud and financial crime.
Cryptocurrency Platform Reduces Business Application Review Time By 25% Despite 95% Increase in Volume
The Company offers crypto-native financial services to both businesses and consumers. They aim to provide a seamless digital experience while still maintaining rigorous compliance standards. Already a trusted KYC solution provider for consumer accounts, the Company needed the same robust solution for business onboarding as KYB is essential to validating new business customers and mitigating fraud and financial crime.
95%
Increase in quarterly business application volume.
25%
Decrease in manual review time per application.
30%
Of all applications from international businesses.
Use Cases
- Customer Onboarding
- Business Onboarding
- Case Management
- Crypto Services
Challenge
The Director of Compliance explained that KYB analysis presents distinct challenges versus individual KYC: “KYBs are very difficult to auto-approve and validate.” Static rules-based systems struggled to provide the adaptability required to manage evolving risks.
The Company needed to build risk models tailored to their specific threats and risk appetite. They aimed to align KYB controls with existing frameworks like MITRE and NIST. The Director noted, “Not all risks manifest the same for different companies.“
Solution
With Effectiv, the Company constructed dynamic workflows to assess risk and auto-approve applications. The Director of Compliance explained how the configurable interface enables efficient review, stating, “We’re able to get insights generated into a single place that allows us to review applications more quickly.“
Leveraging Effectiv’s AI/ML model-building capabilities, they continue to enhance risk decisioning. During the second half of 2023, auto-approval rates rose from 67% to 72% while denial rates held steady around 4%. Faster, more accurate KYB has yielded major productivity gains. As the Director of Compliance noted, “The easy-to-use AI/ML Model Hub gives us the confidence to build, test, and constantly improve our risk-decisioning to drive further efficiency and deliver value to the business.”
Effectiv’s interface also facilitates documentation and collaboration for ongoing improvement. The Director noted how Effectiv provides “the power to think beyond out-of-the-box solutions to develop risk models unique to our business.“
“There’s now a distinction between technical compliance and outcomes-oriented and results-driven approaches to compliance. It’s only through something as adaptive as the Effectiv solution that we can build out and demonstrate how our threat-centric approach mitigates risk to specific threat actors.”
- Director of Compliance
Result
Key Metrics:
- 5% increase in auto-approved applications
- 4% automated denial rate maintaining compliance
- Reduced manual application review time by over 25%
- 30% of all applications from international businesses
- 95% increase in annual business application volume
Here’s how the Director summarized the Effectiv experience: “I see it only growing stronger over time. There are more and more use cases that we never even considered. And there’s enormous potential to integrate Effectiv into almost every aspect of our business operations.“
The flexibility and customization enabled by Effectiv’s KYB solution empowered the Company to transform business onboarding. They implemented dynamic workflows aligned with their unique risk management strategy. This intelligent automation improved efficiency and customer experience while upholding rigorous compliance standards. As volumes and risks evolve, the Company is well-positioned to respond with an adaptable, risk-based KYB program.
