This collaboration aims to assist banks and credit unions in reducing fraud and managing risk by improving Know-Your-Business (KYB) processes. According to the official press release, due to increasing regulatory scrutiny in the financial sector, institutions are being pushed to enhance their due diligence practices.
Through this integration, Backbase’s Engagement Banking Platform will offer real-time verification data sourced from various databases, including those maintained by the Secretaries of State across all 50 states, IRS, USPS, and OFAC. The goal is to provide financial institutions with clear insights into the businesses they onboard, helping ensure compliance while reducing fraud risks.
This integration will allow banks and credit unions of all sizes to streamline their business onboarding procedures. According to representatives from Backbase, businesses are looking for verification processes that not only meet regulatory requirements but also avoid unnecessary delays. They emphasised that this partnership continues Backbase's efforts to provide flexible, scalable, and API-driven solutions that enhance the digital experiences banks deliver to their business clients.
Moreover, the collaboration between Backbase and Middesk will enable financial institutions to create customised onboarding processes with minimal technical complexity. This customisation is expected to help banks and credit unions improve operational efficiency and grow their customer base, as they deploy highly accurate and up-to-date verification tools.
Officials from Middesk noted the challenges involved in onboarding and business verification, particularly in light of increased regulatory demands. They highlighted that this partnership will grant financial institutions access to fresh and reliable data, enabling them to make better-informed decisions with faster data updates.
Backbase created the Engagement Banking Platform, which is a composable platform that helps banks to accelerate their digital transformation by progressively modernising their main customer journeys. In essence, the platform aims to streamline every aspect of the customer and employee journey.
According to Backbase, more than 120 credit unions and banks around the world are working with the Engagement Banking Platform, including Bank of Oklahoma, Bank United, and Boeing Employee Credit Union.
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