Compliance is a necessary staple for any successful business venture. Critical to the success of any type of digital finance platform is a comprehensive identity verification process which usually require to meet both domestic regulatory requirements and sustainable business objectives.
To actively engage in the financing opportunities provided, investors are required to complete processes with regards to their identity and investor status, which in turns requires investors to provide a significant amount of information, that must be later verified by the operator. With developments in Fintech and API based infrastructure, we’re now able to shorten this process by providing the flexibility to fully automate it.
Integrated third party service providers are now able to verify the authenticity of a user’s information in real time while allowing operators to retain full control over each step of the investor’s verification process. Likewise, operators can digitize their platform’s deal flow to expand their sourcing pipeline while benefiting from the help of state of the art compliance experts.
Altogether, it translates into compliance requirements being what they were always supposed to be: a minimum standard that can be easily met with proper processes in place. Rather than being perceived as a burden to platform operators, compliance can now be completely integrated in each platform’s workflows and then be used to build trust between the different categories of users, represented by issuers, investors, and operators.
But with an API based approach, as adopted by Crowd Valley, platform operators can expand their verification and procedures beyond the minimum regulatory environment and create a customized workflow. This allows the operator to create a more comprehensive identity or credit history for the different borrowers or investors on the platform by plugging in data from commerce or social media sources as well such as Amazon, Facebook or Linkedin thus creating avenues for greater inclusion while simultaneously allowing for a more informed understanding of the user base, thus lowering chances of fraudulent or impropriety.
Striking a balance
By having this process built-in their workflows, operators are able to better control the drop-off rate between the number of users signing-up and the number of users eventually able to invest through the platform. Here, the objective isn’t to maximize the number of potential investors, but rather than strike a balance between increasing the investor base and requesting sufficient information. Allowing too many users might reduce the success rate of other key process such as matchmaking, closing, and settlement. Furthermore, approving all users would surely prevent operators to meet their compliance and regulatory requirements.
Creating an e-compliance workflow
Platforms built using the Crowd Valley framework can choose to implement various standard approaches and workflows while providing developers total flexibility to create proprietary processes. Which can be done either by building on top of dozens leading third-party services that support online KYC and AML checks or by easily integrating new services using Crowd Valley’s integration kit.
Integrated third party service providers are now able to verify the authenticity of a user’s information in real time while allowing operators to retain full control over each step of the investor’s verification process. Likewise, operators can digitize their platform’s deal flow to expand their sourcing pipeline while benefiting from the help of state of the art compliance experts.
Altogether, it translates into compliance requirements being what they were always supposed to be: a minimum standard that can be easily met with proper processes in place. Rather than being perceived as a burden to platform operators, compliance can now be completely integrated in each platform’s workflows and then be used to build trust between the different categories of users, represented by issuers, investors, and operators.
But with an API based approach, as adopted by Crowd Valley, platform operators can expand their verification and procedures beyond the minimum regulatory environment and create a customized workflow. This allows the operator to create a more comprehensive identity or credit history for the different borrowers or investors on the platform by plugging in data from commerce or social media sources as well such as Amazon, Facebook or Linkedin thus creating avenues for greater inclusion while simultaneously allowing for a more informed understanding of the user base, thus lowering chances of fraudulent or impropriety.
Striking a balance
By having this process built-in their workflows, operators are able to better control the drop-off rate between the number of users signing-up and the number of users eventually able to invest through the platform. Here, the objective isn’t to maximize the number of potential investors, but rather than strike a balance between increasing the investor base and requesting sufficient information. Allowing too many users might reduce the success rate of other key process such as matchmaking, closing, and settlement. Furthermore, approving all users would surely prevent operators to meet their compliance and regulatory requirements.
Creating an e-compliance workflow
Platforms built using the Crowd Valley framework can choose to implement various standard approaches and workflows while providing developers total flexibility to create proprietary processes. Which can be done either by building on top of dozens leading third-party services that support online KYC and AML checks or by easily integrating new services using Crowd Valley’s integration kit.
About the author - Enzo Ramos
Enzo grew up in France but also studied in the United States (Philadelphia & Monroe, MI). His work in Fintech began in 2014, at the occasion of regulatory changes that enabled the creation of French equity crowdfunding platforms. Ever since, he’s been interested in the ever-expanding world of online finance platforms. He is currently based in Lyon, where he is involved in the creation of synergies between innovative challengers and established firms.
Enzo grew up in France but also studied in the United States (Philadelphia & Monroe, MI). His work in Fintech began in 2014, at the occasion of regulatory changes that enabled the creation of French equity crowdfunding platforms. Ever since, he’s been interested in the ever-expanding world of online finance platforms. He is currently based in Lyon, where he is involved in the creation of synergies between innovative challengers and established firms.
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