Businesses either startups or established firms need investments at some point to keep their company running and increase revenue generation. There are various types of investors in the market which makes it hard for businesses to pick the right one. Furthermore, some of the investors are mere fraudsters who will simply reap illegitimate benefits and leave reputational damages.
This call in for better Know Your Investor services to pitch to the right entity and generate collective growth. Ineffective verification and onboarding processes are more likely to drive away from the investors. Therefore, businesses need to employ AI-powered investor verification services to provide a seamless onboarding and user-friendly experience. The blog further highlights the ways businesses can improve their investor onboarding process.
Investor Verification Solutions – Ensuring Streamlined Onboarding and Long-term Partnerships
There are numerous investors such as angels, venture capitalists, corporate firms, and many others in the marketplace who offer distinct benefits. However, some are just fraudsters looking for companies to exploit financial benefits. As per Shufti Pro News, they use fake information and show inaccurate account balances to partner with the company. Therefore, businesses should carry out Know Your Investor (KYI) checks to accurately verify entities prior to partnerships.
The AI-powered investor verification solutions help businesses to choose the right potential investors for long-term growth. These solutions provide accuracy in verification and effective screening to mitigate the chances of signing a contract with fraudulent entities. The investor verification services further improve the onboarding and retaining process in the following ways:
Bring Digitial Transformation to the Process
Traditional verification methods no more compete with the advanced methods fraudsters are using. They use fake information and documents to partner with businesses. This makes it crucial for companies especially like startups to identify potential investors.
To improve their investor onboarding process, they should bring in technological innovations to tick out the chances of human errors and discrepancies. The AI-powered investor verification services, streamline the onboarding process along with providing accurate identification in minimal time. These services further enhance the verification process in the following ways:
- Improves the onboarding process by using Optical Character Recognition (OCR) for data collection, extraction from documents
- Provides accurate identity verification and automatic logins by using biometric-based facial recognition
- Helps businesses ensure compliance with Know Your Investor (KYI) standards by providing accurate background checks
- Keeps track of investors, their transactions, funds of sources, and third-party interactions.
- Offers e-signatures to provide instant approvals
Simplifies the Process
The extensive information requirements, lack of effective investor authentication, and inadequate privacy maintenance are more likely to result in investor dropoff. This is because they are not that much interested in the history of platforms’ onboarding process. Moreover, the complex step for verification and repeated submission of information also drives the investors away. Therefore, businesses need to employ investor verification services to provide a user-friendly experience.
The AI-powered investor authentication streamlines the onboarding process by providing real-time verification. The system asks the investor to fill in their information in the form and upload supporting documents. The systems then extract the required data for Know Your Investor (KYI) process and cross-verify it within global databases. The process is simple and involves a step-by-step mechanism. The system then asks for a real selfie to verify investors and ensure they are present in the real world.
Improves Communication With the Investors
Communication is one of the most important things in retaining a long-term partnership with potential investors. The Know Your Investor services here provide better communication methods to avoid any shortcomings. Investors putting in a hefty amount to the business should be aware of even the minimal chances. Otherwise, they take out the money. Businesses should develop better communication with the investors. The digital Know Your Investor (KYI) solutions not only help identify them but also businesses can stay constant.
The online investor verification services also help companies to keep track of their investors and their third-party interactions. Furthermore, they help businesses to assess the risk investors may possess by validating their source of funds. They can also cross-verify them across global databases. Ultimately, investor verification services help businesses maintain a transparent relationship with their potential entities while reducing the chances of halfway dropoff.
Investors are the potential entities that help businesses especially startups to uplift their status and generate high revenues. For this, the businesses require the right investors who will not launder money or possess other threats. Therefore, businesses need to employ investor verification services to verify identities accurately. It further minimizes the chances of falling prey to fraudulent entities. As per Shufti Pro Funding, digital services involve fewer shortcomings.