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Dec 12, 2024 | Insights

Optimizing KYB with Data-Driven Solutions to Reduce Fraud and Encourage Growth

The financial services industry is evolving rapidly, driven by the growing power of data. For businesses navigating the complex world of Know Your Business (KYB), fraud prevention, and risk monitoring, adopting advanced, data-driven solutions is no longer optional—it’s essential. At Baselayer, we help companies streamline onboarding, reduce fraud, and confidently scale by integrating cutting-edge tools
into their KYB workflows.

From faster customer onboarding to enhanced fraud detection, leveraging high-quality data and alternative data sources has redefined how fintechs and financial institutions operate.

The Role of Data

The KYB landscape has become increasingly complex, with fraud tactics like synthetic identities on the rise. The Federal Deposit Insurance Corporation (FDIC) reports an estimated 2.5 million synthetic identities exist in U.S. bank accounts, highlighting the urgency for robust fraud prevention solutions. Baselayer addresses these challenges by combining AI-driven technology with alternative data sources to optimize KYB processes.

Key insights driving this transformation include:

1. Faster, Safer Onboarding

High-quality third-party data enables businesses to verify customers quickly while reducing manual errors and fraud risks. Streamlined onboarding processes allow companies to scale without compromising security.

2. AI-Powered Fraud Detection

Real-time fraud detection tools powered by machine learning provide businesses with a defence against increasingly sophisticated threats. By analysing identity and behavioural data in real time, companies can stop fraudsters while delivering seamless experiences for legitimate customers.

3. Alternative Data Unlocks New Markets

Traditional data sources often fall short in emerging markets or for businesses with minimal digital footprints. We integrate multiple layers of data, including device intelligence, behavioural biometrics, and geolocation data, to evaluate risk and avoid fraud.

4. Automation Enhances Compliance

Automation in fraud prevention and risk monitoring reduces operational overhead and compliance burdens. Baselayer’s tools ensure real-time verification of 100% of registered businesses, enhancing efficiency and accuracy.

Dynamic Solutions for a Competitive Edge

Baselayer’s centralized KYB platform consolidates and analyses data from multiple touchpoints in real time. This dynamic, AI-powered approach enhances business identity verification, significantly reduces fraud risks, and improves onboarding efficiency.

By integrating multi-layered authentication , Our platform empowers businesses to detect fraudulent activity proactively. These tools offer deep insights into user behavior, helping businesses maintain security without sacrificing user experience.

Measurable Results: Growth and Fraud Reduction

The adoption of data-driven KYB solutions delivers tangible results. One digital bank that implemented AI-powered identity verification tools saw:

  • Auto-verification rates increase from 79% to 92%
  • Identity fraud losses drop by 54%
  • A significant increase in revenue, delivering a 10x return on investment

These results highlight the transformative potential of modern fraud prevention and risk management tools, enabling businesses to expand rapidly and securely.

Scale Confidently with Baselayer

In today’s fast-moving financial ecosystem, the ability to onboard customers faster, prevent fraud, and expand into new markets is critical. Baselayer provides businesses with the tools to stay ahead, combining business identity verification, fraud prevention, and continuous risk monitoring into a single, seamless