Know Your Investor- Embedding Digital Form of Verification

Businesses need to establish relationships with investors to expand their company in a better financial aspect. Advanced technologies have benefited organizations widely yet on the other side it had created new opportunities for fraudsters to partake in the criminal world more often. Investment frauds are increasing as imposters have devised new loopholes for making fools of companies by causing them to purchase assets based on fake information. Checking the reliability of an investor has been a concern disrupting businesses for quite a long period of time now. Doing false promises of large profits through bogus statements is an illicit tactic of investment fraud. It has increased the need of verifying investors before forming any link with them. This can be achieved by implementing the Know Your Investor solution since it has high rates of reliability as it is based on AI technology to detect fake investors while protecting firms from any potential risks of fraud. 

Know Your Investor Solutions create opportunities for companies to onboard authentic investors without the fear of any risks of fraud associated with them.

Replacing Manual Investor Verification with Digital Methods of Identification

Evaluating an investor and investigating them has never been an easier task in the past. This has caused trouble during the process of investor onboarding. Not only this, plenty of time taken to perform background checks manually aspires to have a danger of losing a potential investor since there are multiple competitive businesses prevailing in the global market. Moreover, companies used to hire a money laundering reporting officer who is inclined to check any risks of money-laundering-related activities associated with an investor. Online investor verification services have changed this dimension as automated systems detect any financial risks in less time which helps the companies to strike deals with potential investors in the limited time frame.

Understanding the Concept of Know Your Investor Service  

To verify investor has become a commodity for businesses to vitally expand globally. Fake investors can cause illicit damage to a business entity. In this aspect, the Know Your Investor comes to the rescue with their online investor verification solution. An investor is verified by checking their corporate documents uploaded as an image by them. Information is extracted by the software of OCR to cross-check the document against proof of evidence. Not only this, an MLRO validates investor documents and checks them against the regulatory compliance of AML. The results of the investor are saved up in their back office. Major investors have stated to fun these services to prevail in the global market to for fighting frauds similar to Shufti Pro Fundings.

Investment fraud has made it difficult for businesses to form profitable relationships with investors. Several businesses are at risk of becoming victims of these heinous crimes. To combat this, Know Your Investor solutions can assist businesses in verifying investors and removing any associated risks. Furthermore, when compared to manual investor verification methods, there are numerous advantages to using an online investor verification solution. To develop profitable partnerships, companies must check the portfolios of investors and verify them through KYI.

Benefits of Enabling an Online Investor Verification Solution

Only Authentic Investors are Onboarded

Since there has been a rise in fraudulent activities in recent times, protecting companies from them has become a challenging task. The Know Your Investor service will allow businesses to onboard only legitimate investors who can provide benefits to them in the future. It eliminates any risks of financial criminalities which can harm the company. 

Saving the Costs of Labor

As the KYI is based on an automated system, it will help the company to save costs of labor by not hiring workers to verify the background checks of the investors. In addition to this, businesses will be protected from the occurrence of any huge financial losses as reliable investors are onboarded only. 

Less Time-Consuming

In the competitive market, there is no time to lose a potential client by conducting thorough manual research about an investor which could consume a lot of time. The investor can certainly move to another business if no response is given to them in a limited time. AI-based systems enable businesses to develop relationships with prospective investors in the right frame of time by verifying their identities in a quick way. 

Higher Accuracy

Digitally conducting investor authentication enables the companies to achieve higher levels of accuracy as compared to the manual investor checks as the automation system detects minor errors which can get neglected by the naked eye. 

Risk mitigation and Fraud Prevention

By obtaining details about an investor, the business can easily make decisions about whether it is feasible to formulate relationships with them or not. The Know Your Investor service helps organizations mitigate risks and prevalent fraudulent activities by keeping criminals at bay. The chance of becoming a victim of investment fraud gets low with KYI. 

Wrapping it Up

Verifying investors has become a valuable commodity for companies looking to expand globally. Fake investors have the potential to harm a company. Know Your Investor, with their online investor verification solution, comes to the rescue in this regard. An investor is verified by looking at their corporate documents, which they have uploaded as an image. To cross-check the document against proof of evidence, OCR software extracts information. Not only that, but an MLRO verifies investor documents and compares them to AML regulatory compliance. The investor’s results are saved in their back office. Major investors have stated that they expect these services to succeed in the global market in order to combat frauds like Shufti Pro Fundings.

Investment deceptions have made it problematic for companies to establish profitable relationships with investors. Multiple companies are at risk of being targeted by these vicious criminalities. To combat this, The Know Your Investor solutions can help businesses verify investors while eliminating any risks associated with them. Furthermore, numerous benefits can be consumed by the implementation of an online investor verification solution as compared to the manual methods of investor verification. Therefore, companies need to check the portfolio of the investors and verify them through KYI to develop profitable partnerships. 

Leave a Comment