You want to scale your merchant acquiring business, and new merchants want fast underwriting, so why not just stamp “Approved!” on every new application and enjoy a meteoric rise in revenue?
We all know the reasons:
- Conducting Know Your Customer (KYC) due diligence is required.
- Even if it wasn’t required, you want to do it anyway to avoid the chargebacks, compliance violations, and reputational risk that comes with granting accounts to bad actors.
Merchants want a fast approval, but manual KYC research takes time making it the bottleneck in the merchant underwriting process.
Manual KYC Jeopardizes New Merchant Accounts
Underwriting speed is key to winning new merchants, and speedy KYC due diligence is key to fast underwriting. So, what’s the key to faster KYC?
Manual KYC checks are slow, inconsistent, error prone, and a waste of expensive analyst time. On the flip side, KYC SaaS solutions automatically aggregate KYC data from all sources simultaneously. Automation makes the KYC process lightning fast, with consistent high quality, and at a fraction of the cost of manual labor. Plus, it frees up your analysts to focus on revenue-generating underwriting.
What’s the ROI?
The entire merchant onboarding workflow can benefit from automation, but KYC stands out as the obvious first place to automate. It’s inexpensive, fast and easy to implement, and provides immediate ROI…even for smaller shops.
The ROI is overwhelming when your volume hits 200 merchant applications per month. At that volume, you’ll be forced to hire another person to have a chance at keeping up with the KYC workload. For larger shops running even higher volume, the ROI on any automation investment becomes increasingly compelling as volumes grow.
Choose your vendor wisely
While KYC automation as a class of service is an obvious choice, there are significant differences between vendors. G2’s KYC Automation is powered by our partner KYC SiteScan, the global leader in automated Know Your Customer due diligence technology. All KYC checks closely follow the ETA’s merchant onboarding guidelines, and reports provide auditable KYC documentation via multiple methods including mature, well-documented API integration.
To learn more: