While fintech makes investments quicker and easier, it doesn’t negate the need to perform proper due diligence procedures. Rather, it demands that due diligence be similarly quick and easy; modern investors want online and mobile processes that mimic low-touch and effective online shopping experiences.
Beyond providing a seamless experience, the due diligence must meet regulatory compliance requirements. How can onboarding investors be both convenient and compliant? How can investors and compliance teams get what they want from customer onboarding?
Investment crowdfunding platform
This is the situation that FrontFundr, a Canadian investment crowdfunding platform, found itself in. FrontFundr’s goal is to transform private capital markets and unlock greater investment opportunities. To truly democratize access to the private markets, they wanted to build a secure, compliant and frictionless onboarding experience for investors.
On the one hand, Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC) requires obliged entities, such as FrontFundr, to fulfill Know Your Client (KYC) and Anti-Money Laundering (AML) requirements including identity verification of both individual and corporate investors. On the other hand, they wanted to ensure that the company’s online investing experience was quick and comfortable for users.
The system they were using was sluggish and error-prone and, as a result, became a very manual process, burdening both investors and company personnel. They required a solution that could quickly scale and deliver the compliance and onboarding experience that investors desired.
It was at this juncture that FrontFundr made the decision to integrate with GlobalGateway, Trulioo’s marketplace of identity data and services. Learn how FrontFundr built a secure, compliant and frictionless onboarding experience for investors:
Business Verification (KYB)Enhanced Due Diligence Procedures for High-Risk Customers
Identity VerificationProof of Address — Quickly and Accurately Verify Addresses
Business Verification (KYB)How to Verify Legitimate Businesses and Merchants