Leading risk and authentication specialist Honey Badger HQ, Inc. has launched a new Pre-KYC product that automates instant risk assessment and verification processes when onboarding.
Used by companies to onboard new customers or perform due diligence on users, the typical ‘Know-Your-Customer’ (KYC) process involves tasks such as verifying documents, performing liveness checks, and conducting proof of address verification.
The average KYC process is expensive and time-consuming—leading to frustration among customers and delays in onboarding. In addition, it struggles to expose all the potential risks that users may present.
Honey Badger’s Pre-KYC insights are designed to run before traditional KYC checks begin. To save organizations time, money, and customer friction, this new product uses alternative data sources to add the kind of context and risk insights traditional KYC processes don’t deliver.
At the heart of the innovative Pre-KYC solution is risk assessment. The checks involve assessing risk profiles based on data sourced from a user’s email addresses, phone number, social presence, devices, IP addresses, and data located in third-party databases.
When a user applies for credit, a bank account, or a service that requires stringent verification processes, Honey Badger performs a range of instant checks to assess the individual’s risk profile. These checks include using the age and reputation of an email address to assess trustworthiness, verifying personal information with mobile providers, and cross-referencing information found on social media platforms.
The primary purpose of Honey Badger’s Pre-KYC is to ensure the entire process is automated and instant. Users won’t experience any friction or delay, as they won’t need to play any role in the process — all of which happens behind the scenes instantly.
This new and innovative approach to user verification processes can flag potential bad actors quickly and cost-effectively. Organizations won’t need to carry out unnecessary KYC checks because bad actors are identified before they ever reach that stage.
Honey Badger CEO Matthew Salisbury believes this new product has the potential to transform the way organizations onboard new customers. He said:
“Our customers are always asking us for ways to streamline their onboarding processes and cut the associated costs. Pre-KYC is the latest solution to those requests, and we’re excited to see it being incorporated into onboarding processes.”
“As well as performing critical verification processes without affecting user experience, our new service is also reducing the need for thousands of unnecessary and expensive KYC checks.”
“It’s all about assessing risk instantly using a selection of alternative data sources. Bad actors can be identified and rejected before traditional KYC checks begin.”
“Pre-KYC has already stopped thousands of bad actors from committing fraud and financial crime. That’s something my team and I are hugely proud of.”
Honey Badger’s Pre-KYC customers have reported onboarding savings of up to 48% — thanks to this fully automated method of assessing risk and preventing unnecessary KYC checks.
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