KYC and KYB compliance has become a technology problem, not just a regulatory one. Financial institutions face mounting costs and operational friction because their current systems can't handle the demands of modern verification requirements.
The Core Problem: Technology Can't Keep Pace with Compliance
Most banks and FinTechs are attempting to meet increasingly complex KYC/KYB regulations with infrastructure that wasn't built for this purpose. The result is measurable:
FinCEN projects customer due diligence will cost the industry $700 million to $1.5 billion over the next decade, with some estimates reaching $10 billion
Banks currently spend an average of $60 million annually on KYC compliance alone
Regulatory fines for non-compliance continue to hit institutions despite significant compliance budgets
The pattern is clear: throwing money at outdated systems doesn't solve the underlying technology gap. Institutions need infrastructure that can securely access government databases, process verification data in real-time, and maintain compliance across multiple jurisdictions, but most don't have it.
What This Technology Gap Creates
Security vulnerabilities: Accessing government data sources like Aadhaar, corporate registries, and identity databases requires robust security protocols that legacy systems lack. Manual processes and disconnected verification tools create data leakage risks.
Operational inefficiency: Without automated verification workflows, institutions rely on manual document review, follow-up requests, and human risk assessment. This doesn't scale and introduces human error at every step.
Compliance exposure: Regulations evolve faster than internal systems can adapt. Maintaining compliance across different markets requires constant monitoring and updates that manual processes can't sustain.
Poor customer experience: Customers expect instant verification. When KYC processes take days or require multiple document uploads, conversion rates drop and customer acquisition costs rise.
Real-World Impact: Consider Three Common Scenarios
Scenario 1 - Neo-bank onboarding: A digital lending platform receives 10,000 monthly applications. With manual KYC verification taking 24-48 hours, they process approximately 6,500 applications (35% abandon during verification). Each abandoned application represents wasted acquisition spend of ₹300-500. Monthly loss: ₹10.5-17.5 lakhs just from verification friction.
Scenario 2 - Corporate client verification: A B2B FinTech needs to verify corporate clients across India and Southeast Asia. Each market has different corporate registry requirements, verification standards, and data sources. Building and maintaining separate integrations for each market takes 18+ months and requires ongoing technical resources to handle API changes and compliance updates.
Scenario 3 - Risk profiling for underwriting: A lending institution needs deeper due diligence for high-value loans. Their current process requires analysts to manually pull data from multiple sources, cross-reference information, and compile risk profiles. This takes 3-5 days per application and produces inconsistent results based on which analyst handles the case.
How Tartan's KYC Suite Addresses These Gaps
Tartan provides API infrastructure that solves the core technology problems preventing effective KYC/KYB verification:
Instant verification with credible data sources: Direct integration with government databases and authorized data providers across multiple markets. Verification happens in 0.8-1 seconds rather than hours or days, with data sourced from official registries rather than customer-uploaded documents.
No-code and low-code implementation options: Institutions can integrate verification capabilities without extensive development resources. This reduces time-to-market from months to weeks and eliminates ongoing maintenance burden as Tartan handles API updates and compliance changes.
Built-in security and compliance: SOC 2 certified infrastructure with encryption, audit trails, and consent management built in. Automatic compliance with regional KYC/KYB regulations including RBI guidelines, MAS requirements, and international AML standards.
Risk profiling data: Beyond basic identity verification, Tartan's APIs return structured data for risk assessment, including corporate shareholding structures, directorship history, litigation records, and financial health indicators. This enables automated risk scoring rather than manual analysis.
Multi-jurisdiction coverage: Single integration provides verification capabilities across India, Southeast Asia, and expanding markets, eliminating the need to build and maintain separate integrations for each region.
Measurable Outcomes
Financial institutions using Tartan's verification infrastructure typically see:
60-80% reduction in verification time: From days to seconds for standard KYC checks
40-50% improvement in conversion rates: Fewer customers abandon applications when verification is instant
70% reduction in operational costs: Automated verification eliminates most manual review requirements
Zero compliance lag: Regulatory updates are automatically incorporated without requiring internal development work
Implementation Approach
Integration follows a standardized process regardless of your current tech stack:
API integration (1-2 weeks): Connect Tartan's verification endpoints to your application flow
Workflow configuration: Define which verification checks apply to which customer segments
Parallel testing: Run Tartan verification alongside existing processes to validate accuracy
Full deployment: Switch to automated verification with fallback mechanisms for edge cases
For institutions requiring custom verification logic or specific data points, Tartan's API suite provides the flexibility to build tailored verification workflows without starting from scratch.
Moving Forward
The question isn't whether to upgrade verification infrastructure, but how quickly you can do it. Every month spent on legacy verification processes represents lost customers, wasted compliance budget, and accumulated technical debt.
Tartan eliminates the technology barriers that make effective KYC/KYB verification expensive and complex, providing the infrastructure financial institutions need to meet regulatory requirements while improving operational efficiency and customer experience.
Ready to modernize your verification infrastructure? Connect with Tartan's team to discuss your specific KYC/KYB requirements.
Tartan helps teams integrate, enrich, and validate critical customer data across workflows, not as a one-off step but as an infrastructure layer.
