The Challenges
For Coinzilla, a key goal was to assist advertisers in launching targeted ad campaigns for their crypto projects. At the same time, they aimed to attract more publishers looking to display crypto-related ads through its highly innovative and fast-growing platform.
For this to work through a simple and easily manageable process compliance-wise, both Know Your Customer (KYC) and Know Your Business (KYB) measures were required. Coinzilla’s team understood that a scalable approach was the go-to option and, for this reason, required automated software to streamline different time-intensive compliance tasks.
Ideally, Coinzilla needed a RegTech vendor that offered verification for both corporate and individual clients, with the option to customize KYB checks if needed, leaving room to make adjustments, regularly review data, and reassess customer profiles throughout the whole business relationship.
“A built-in identity verification process on a KYB solution specifically targeting shareholders and UBOs was incredibly important for us,” explained Stefan Luta, the CEO of Coinzilla. “We needed to know that we’re dealing with legitimate individuals at the ownership level, which strengthens our trust in our partners and helps create a secure environment within our platform.”
However, before iDenfy, the Coinzilla team identified a few areas that they wanted to improve:
- The KYC onboarding process wasn’t fully automated, which required assessing information, including various documents, manually.
- KYB compliance required verifying the identities of shareholders and Ultimate Beneficial Owners (UBOs), but this process involved collecting and verifying an excessive amount of information. Without automation in place, this approach was not compatible with the company’s plans for scaling.
- The limited customization options and the need for a more refined approach to KYC/KYB compliance processes became vital, as Coinzilla recognized that a universal strategy wouldn’t work, especially given the different markets, clients, and risk profiles they deal with.
For example, sole proprietors and smaller businesses needed a simple onboarding process with fewer checks, as opposed to larger enterprises. According to Coinzilla, while these challenges haven’t caused a major negative impact on their business, they have posed potential risks, hindering the platform’s ability to function optimally.
“A manual compliance system simply can’t keep pace with significant growth. We didn’t want any delays in our onboarding processes. We needed a solution that could help us prevent unwanted frustration and any negative impacts on our customer acquisition efforts,” added Stefan Luta.
The Solution
Building an in-house verification system would have required significant resources, putting away Coinzilla’s focus on building their advertisement network. So, to combat money laundering and other financial crimes, the platform needed to establish a clear understanding of who their partners are. This required a comprehensive third-party KYB solution that included a handful of components and features, such as KYC verification for UBO compliance or document verification for converting more global users.
“We quickly found that running all of the compliance processes and ensuring that the data we use is correct would have required continuous investment in infrastructure and expertise,” said Stefan Luta, the CEO of Coinzilla.
Additionally, to improve the inefficiency factor and minimize delays for customers who had to wait longer than expected in rare cases, Coinzilla looked for fully automated software that would minimize the chances of having a backlog and streamline the data collection and verification process.
As a result, the company implemented iDenfy’s KYB software, which offers multiple features for Coinzilla’s team, streamlining various compliance tasks, such as:
- Automated data collection. This includes details such as the company name, registration number, address, and other related documents. Instead of exchanging numerous emails back and forth, iDenfy provides a custom KYB onboarding questionnaire. This allows Coinzilla to ask clients questions and gather information using ready-made templates or personalized document requests that are easy for the end user to complete.
- Built-in UBO verification. This includes identifying and verifying UBOs through a streamlined KYC process, which includes a government-issued document check and biometric selfie check for a more robust approach, allowing Coinzilla to focus on building strong relationships with their clients from the very beginning.
“A built-in identity verification process specifically targeting shareholders and UBOs was incredibly important for us. We can break down the share values and avoid spending hours on analyzing opaque corporate structures,” noted Stefan Luta.
By switching to a fully automated KYB and KYC workflow, Coinzilla wanted to improve its internal risk management process. Now, with iDenfy’s software, the company can detect risk patterns and set up automated alerts to monitor suspicious activity even after the customer onboarding stage, as their improved KYB process gathers the necessary data for ongoing due diligence.
This transition also helps to adapt and change workflows when needed, as Coinzilla doesn’t need to implement any changes themselves or handle a bunch of updates waiting in the queue. iDenfy’s custom KYB rules can be easily set up on the dashboard, helping Coinzilla’s team adjust their processes according to industry standards, risk tolerance, and new compliance rules.
Why iDenfy?
One key factor that played a major role in choosing iDenfy for Coinzilla was iDenfy’s multi-feature RegTech solution hub, which carried both KYC and KYB features. The advertising platform needed a fully automated solution that would be able to minimize drop-offs and simplify the onboarding process for corporate clients. That meant overcoming a few challenges while maintaining strong fraud prevention and security measures.
“With future growth plans to expand to new markets and attract more advertisers around the world, we knew that the existing verification framework might not be applicable at this stage,” said Stefan Luta, the CEO of Coinzilla. We needed a more global provider with a wide supported ID document range.”
As Coinzilla explored various options, they understood that the best for their sphere was a vendor that offered smoother integration and a proven history of effective, fully streamlined identity verification.
iDenfy offered Coinzilla key functionalities, including:
- Custom flows for both KYC and KYB processes.
- Smoother client onboarding, resulting in better conversions.
- Streamlined data collection and built-in UBO verification.
- Support regarding regulatory compliance.
- Reduced manual workload and backlog and a fully automated workflow.
- Effective fraud prevention measures to enhance internal risk assessment.
“iDenfy provided a comprehensive solution that addressed all our pain points. Their verification software eliminated the need for manual document processing. This way, we’ve improved our efficiency and scalability. Additionally, iDenfy’s compliant data storage abilities removed any security concerns that we had left regarding user data,” explained Stefan Luta.
The Results
Coinzilla removed the hassle of managing various compliance tasks, and instead of manually onboarding individual clients and other companies with iDenfy, it switched to a fully automated KYB and KYC flow.
This change eased the process for end users while simplifying the compliance team’s work of managing risk signals and collecting data, particularly when gathering the various documents needed for background checks on the entity being verified.
For example, Coinzilla used the custom questionnaire feature to gather shareholder percentages and identify ultimate beneficial owners (UBOs), simplifying the entire process. “By efficiently verifying shareholder and UBO identities with iDenfy, we can expedite the KYB and KYC onboarding while ensuring we have all the necessary information upfront,” expressedStefan Luta.
“Knowing that we’re dealing with legitimate individuals at the ownership level helps us maintain a more secure environment within our platform.”
This approach helped Coinzilla to:
- Redefine the company’s fraud prevention strategy, helping them stay ahead of emerging trends in the industry, especially when regulations change, and different documents need to be collected and verified before onboarding the entity.
- Store the necessary information securely so that compliance officers can assess red flags, review the history log, add notes to the internal dashboard, and maintain a proper overview of their clients. This will help ensure that fraud does not go unnoticed.
- Collect the necessary documentation more easily to comply with KYC/KYB standards for sole proprietorships or company representatives, including directors and related individuals. Additionally, this feature enabled requesting additional information, such as proof of address (PoA), annual reports, or certificates of good standing.
With iDenfy’s full-stack KYB platform streamlining various compliance tasks linked to corporate clients, Coinzilla has cut the time spent on manual business verification reviews by 77%, lowering the associated costs and minimizing the hassle for end-users who no longer have to wait in long queues and can provide the required information remotely.
For KYC verifications, Coinzilla maximized completion rates and improved standardized KYC checks. As a result, 91% of individual clients can now complete the IDV process in under 3 minutes on average, allowing the platform to scale efficiently and attract more advertisers.
“iDenfy helped us solve data collection and document handling challenges, streamlining labor-intensive processes, like custom forms and questionnaires, helping us standardize our overall KYB workflow,” said Stefan Luta.
About Coinzilla
- Coinzilla boasts a vast network of relevant websites, allowing advertisers to reach a wide audience of potential investors and users interested in the crypto space.
- By strategically placing ads across Coinzilla’s network, advertisers gain significant exposure and generate brand awareness for their ventures.
- This integration creates a new revenue stream, allowing publishers to effectively monetize their content by capitalizing on the interest in cryptocurrency within their audience.
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