Why we created ComplyTeq

Why we created ComplyTeq

What problem are we solving?

The problem with personal data today, especially in regards to the KYC space, is both on the consumer as well as the business side.

Consumer:

As a consumer, you’re constantly being asked for the same information over and over - both from your bank, insurer, lawyer, leasing company etc. If you’re high-net-worth individual this is an even more rigid process, which is not only annoying and time consuming, but in fact hurting customer relationships with these businesses.

Furthermore, no consumer today has a clue about what data they have shared with which businesses, when they shared it, for what purpose, and for how long the businesses are allowed to keep their data. In other words, despite this being their most sensitive data they have no transparency whatsoever.

Businesses:

Most businesses still use emails to collect sensitive personal data which can be downright against GDPR. Even if a business is using an onboarding tool, the flow is tedious for the customers and the same data is being submitted across organisations. It also causes significant drop off rates and long onboarding times.

Additionally, onboarding flows are all focused on initial know-your-customer, but businesses are struggling significantly with continuous monitoring, knowing if their customer data is up to date and accurate. It's a pain for consumers being asked constantly and if data is not up to date or inaccurate, massive fines from regulators across the financial service sectors are being handed out.

Why does the old way no longer work?

As outlined before, the process of how KYC information is retrieved from end-customers is broken - both when it comes to onboarding new customers and continuous monitoring.

There are 4 reasons why we believe current solutions fail:

  1. Collecting KYC data with current solutions is messy with a poor user-experiences
  2. Current KYC solution providers are in a volume game charging per verification. Instead, we let users store personal data and re-use both data and prior validations. Current solutions improve their onboarding flows marginally - we are completely rethinking how KYC is done with our Wallet
  3. Businesses can’t store and keep personal information updated such as passports. With our Wallet, businesses can access this sensitive information and know whether it’s up to date. If a customer updates a passport in the wallet, all 'subscribers' receive it
  4. Regulation is becoming increasingly complex which fosters marginal improvements to existing solutions resulting in poor customer experiences

Current solution providers focus on building better and better onboarding flows. Instead we revert the narrative and help users store all their information in a Wallet for easy and secure re-use whilst making it easy for businesses to request - eliminating one onboarding flow at a time.

Who are we for?

We help high net worth individuals who typically hold multiple;

  1. Banking relationships in several countries
  2. Accounting and lawyer relationships personally and professionally
  3. Ultimate Beneficial Ownerships or Board of Director memberships
  4. Investments across alternative asset classes
  5. Frequent travelling across borders by private or commercial airlines

This means they have high frequency of the problem and high friction, e.g. they have to submit KYC information all the time both when they e.g. open a bank account, fly across borders, check into hotels, syndicate deals or simply as part of continuous monitoring. For example, if you have multiple  investments and are the Ultimate Beneficial Owner (UBO), you have to go through compliance checks every time one of the investments needs to e.g. open a bank account or you subscribe to new funds.

Moreover, businesses subject to AML acts due to Ongoing Due Diligence (ODD) requirements have to bother the high net worth individuals over and over by asking for updates on whether anything has happened to their personal data, identity or e.g. ownership structure of their companies.

With our Wallet, onboarding and continuous monitoring process will be automated. The users will simply receive a push notification on their phone, which they always carry, with a request to swipe to share or confirm data to all the above use-cases - transparent, easy and secure.

Why now?

We have 5 important reasons to why our timing is just right:

  1. Compliance gaps and identity fraud is on the rise. We see legislation and regulation on GDPR, anti-money laundering and anti-terrorist financing acts are tightening, and AML subject institutions is having difficulties complying with AML-regulation such as Know-Your-Customer (KYC) and Ongoing Due Diligence (ODD) requirements, but also with GDPR
  2. For businesses, GDPR and personal data security is becoming a license to operate
  3. Personal privacy and transparency becomes more and more important for consumers
  4. Digitalization of client relationships has picked up through the pandemic across all industries
  5. The current situation in Ukraine and the following sanctions has only made it more difficult to comply with existing regulations, and will likely have a permanent effect moving forward for institutions subject to AML acts

Our solution

So in essence, imagine solving the problem of creating one smooth onboarding flow and then saving that data to an identity app? This would enable the consumer to see exactly who requests data, what data is requested, for what purpose and for how long. Meanwhile a business can simply request the data from one single source of truth and never have to bother their customers again while staying updated with their latest data.

Read more about our Swipe wallet here