Risk systems need to know their business customers
Risk systems need to know their business customers
Across the industry, risk systems don’t really understand business customers.
Knowing a business is more than verifying their company name and address – it requires understanding a mix of business model, reputation, transactions, relationships, and key employees. A good business has substance in almost all of these dimensions. A fraudulent business has little verifiable substance.
Too often, knowing a business is left to manual reviewers. They review the available data, then reach out to the customer over email for additional documentation as needed. This is expensive, slow, and leads to customer churn. The business knowledge is stored in text notes -- useful only for manual reviewers but not for automated systems.
Can we do better? Yes. We see two enablers:
- Risk-directed automated chat to ask questions about the business and founders, especially for new businesses with minimal online reputation
- Verification of online assets, reputation, relationships and qualifications
We founded BlueArc to tackle this challenge.
If you are working on business onboarding or risk management, please drop us a note. We would love to hear your perspective and brainstorm.
