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How leading companies use OpenCorporates to improve due diligence and reduce risk.

Introduction

Financial crimes are growing more complex each year, and regulatory scrutiny is on the rise. Accurate and comprehensive legal entity data has never been more important.

This compendium brings together the stories of eight companies. Each faced a unique challenge, and each built a unique solution to overcome it. The results speak for themselves. All eight highlight the way OpenCorporates’ data integrates into platforms and processes. They show how a single source of comprehensive company data can transform entire industries.

We’ll begin with a summary of the common threads that emerged across all the case studies. Next, we’ll share a typical “Industry Standard” example. This will show you how entity verification works in real life. Finally, we’ll examine the case studies themselves. This way, you can see the common themes in action and how they relate to you and your company today.

Commonalities across all case studies

1. Automation and scalability: Every company had to automate tasks. These included Know Your Customer (KYC) checks and risk assessments. They also needed a data source that could scale globally.
2. Global coverage and accuracy: It was vital to have reliable and current company data. This was especially true for cross-border or multi-jurisdictional checks.
3. Risk and compliance drivers: The main aim was to cut down risk and make sure they followed the rules. Particularly for anti-money laundering (AML), fraud detection, and supply chain risk.
4. Faster decision-making: Speed was essential. Many case studies highlighted the need for near-instant data retrieval. The goal was to cut onboarding times, speed up due diligence, or simplify operations.
5. Data integration and workflow efficiency: Data linked to existing platforms through an API. This gave them immediate gains in efficiency and accuracy.
6. Visibility into ownership structures: Identifying beneficial owners or tracking director histories mattered. Also, monitoring for changes in real time to preempt or respond to emerging risks.
7. Continuous monitoring and alerts: Keeping track of corporate changes over time was vital. Automated alerts allowed for proactive intervention.

“Industry Standard” example for entity verification

Below is a hypothetical scenario that includes these common elements. It shows how a typical company implements a best-practice solution for verifying entities.

ACME Compliance Technologies

Industry Focus: Financial services, fintech, and corporate compliance

Primary Use Case: End-to-end entity verification and ongoing risk monitoring

The Challenge

• Manual and fragmented processes: ACME’s clients are mid-tier banks and insurance companies. They face challenges with slow manual checks. These checks confirm company details and find possible red flags.
• Global coverage needed: ACME’s clients operate across many regions. Verifying entities in different jurisdictions is cumbersome and inconsistent.
• Regulatory scrutiny: AML and KYC rules are always changing. ACME’s clients need strong solutions to stay compliant and avoid penalties.

The Solution

1. Integration of comprehensive data: ACME added OpenCorporates data to its compliance platform. They used an API to create a central source for accurate company records worldwide.
2. Automated risk assessment engine:
   • Data normalisation: Corporate records from OpenCorporates underwent standardisation in ACME’s platform.
   • Ownership and control mapping: The system used the data to map beneficial owners. It identified past directorships and flagged any potential conflicts of interest.
   • Real-time alerts: Clients receive timely notifications when important corporate records change. This includes updates such as new directors or changes in legal status.
3. Scalable workflows:
   • Batch processing for onboarding: The platform lets clients onboard many customers at once. This cuts weeks from the manual verification process.
   • Continuous monitoring: Daily or weekly updates act as a safety net. They help to spot new risks immediately.

Results & Benefits

• 70% faster onboarding: Achieved by automating the verification of real entities and potential issues.
• Better risk management: Alerts and data checks helped clients dodge surprises. This could be anything from bankruptcies, sanctions, or sudden ownership changes.
• Regulatory confidence: Authoritative data helped clients meet compliance needs. This made it easier and boosted their confidence. As a result, they faced fewer fines and less reputational damage.
• Global reach: ACME can expand its client base by covering many areas. This means it can offer the same verification standards on a global scale.

Why It Works

• Comprehensive data source: ACME’s platform leverages the largest open database of companies. This meets the need for both breadth (many jurisdictions) and depth (historical ownership).
• Automation at scale: Reducing manual work helps avoid mistakes. It speeds up workflows and lets compliance teams concentrate on more important tasks.
• Future-proof compliance: ACME can adapt to new regulations and threats as they happen. This is possible due to real-time monitoring and ongoing data updates.

Key takeaway: To exceed the industry standard for entity verification, you need comprehensive global data. Along with automated workflows, this ensures efficient, scalable, and proactive risk management. It satisfies the demands of modern regulations, regardless of industry or location.

If you’re ready to get started, speak to a member of our team now.

The above example shows a typical best-practice setup for verifying entities. It reflects the commonalities we’ve found in our collection of real case studies. Now it’s time to take a closer look at the case studies themselves.

Case Study #1: Encompass

Automating KYC and due diligence

Challenge: As a provider of automated KYC solutions, Encompass needed dependable global data. This was crucial to improve their customers’ due diligence processes. Traditional methods for gathering company data were often manual, leading to errors. These issues caused delays in onboarding times.

Solution: Encompass integrated OpenCorporates’ public and official company data. This allowed automatic retrieval of detailed entity records. The data was then analysed and matched with Encompass’ internal intelligence. This process produced real-time risk assessments.

Results

• Accelerated KYC: Automated retrieval and review made due diligence checks faster.
• Better accuracy: Using the biggest open database of companies made verification more reliable.
• Scalable compliance: Encompass could meet the complex demands of large financial institutions. This was true even for cross-border verifications.

Read the full Encompass case study →

Case Study #2: Exiger

Identifying risk at scale

Challenge: Exiger’s AI-based due diligence tool is for banks, regulators, and large companies. They needed to process huge amounts of due diligence checks on tight deadlines. This meant scanning corporate networks for owners and entities that pose compliance risks.

Solution: They used OpenCorporates’ global coverage and consistent data structure. They perform quick cross-referencing of corporate ownership details, directorships, and other information. This integration helped the platform flag potential risks across different jurisdictions.

Results

• Enhanced due diligence: Improved detection of corporate structures and beneficial owners.
• Significant time savings: Automation replaced time-consuming manual checks.
• Accurate risk profiling: Harmonised data helped paint a full picture of entity relationships.

Read the full Exiger case study →

Case Study #3: Sigma Ratings

Automating risk detection and monitoring

Challenge: Sigma Ratings needed real-time access to accurate data. This data was crucial for screening high-risk entities and monitoring changes over time. Their goal was to create a comprehensive risk-scoring platform. This platform would help financial institutions make quicker, more confident decisions.

Solution: OpenCorporates’ global corporate registry helped Sigma Ratings track companies and their networks. When new data appeared in the public record, Sigma’s system alerted them to the changes.

Results

• Continuous monitoring: Rapid detection of changes in corporate structures or directorships.
• Global coverage: Sigma’s clients can now access public company data in more places.
• Stronger risk scoring: Data consistency ensured accurate baseline metrics for advanced analytics.

Read the full Sigma Ratings case study →

Case Study #4: ethiXbase

Managing supply chain risk

Challenge: ethiXbase focuses on third-party risk management, particularly in complex global supply chains. Tracking many suppliers, each with their own corporate structure, is tough and takes a lot of work.

Solution: ethiXbase used OpenCorporates’ extensive database to automate supplier verification. It checks identity, ownership, and business registration details. The system spots compliance issues or changes that might affect its risk profile.

Results

• Efficiency gains: Automated data retrieval slashed the time spent on manual supplier checks.
• Real-time alerts: The platform provided ongoing monitoring, notifying clients if supplier data changed.
• Compliance assurance: Clients gained confidence that their supply chains met regulatory requirements.

Read the full ethiXbase case study →

Case Study #5: Quantexa

Uncovering hidden risks in corporate networks

Challenge: Quantexa is a contextual decision intelligence company. They specialise in uncovering insights hidden in complex data sets. For their clients, identifying the full scope of corporate networks is vital. This includes beneficial ownership, subsidiaries, and linked directors. Such insights help prevent fraud and financial crime.

Solution: Using OpenCorporates’ normalised company data, they created better graphs of corporate links. This highlighted ones they might have missed otherwise. Using this detailed view, they can spot risks early, like fraud and shell company schemes.

Results

• Holistic visibility: Clear, visual mapping of global corporate networks.
• Better fraud prevention: Early discovery of suspicious inter-company transactions and relationships.
• Scalable intelligence: Streamlined data ingestion for rapid deployment to financial institutions.

Read the full Quantexa case study →

Case Study #6: Sonovate

Accelerating onboarding and credit decisions

Challenge: Sonovate provides fintech solutions, including funding and back-office support for recruitment businesses. They needed quick access to reliable corporate information. This helped with onboarding and assessing credit risk for new clients.

Solution: Using OpenCorporates, Sonovate integrated company verification into their onboarding workflow. This lets them check a potential client’s legal status, directors, and any red flags. They did this without losing speed or user experience.

Results

• Faster decisions: Streamlined background checks cut down the time required for approvals.
• Less risk: Instant checks lower the chances of lending to fake or fraudulent entities.
• Optimised UX: A smooth, automated process improved client satisfaction.

Read the full Sonovate case study →

Case Study #7: Jet Insurance Company

Verifying ownership of current and past businesses

Challenge: Jet Insurance Company underwrites bonds and insurance policies for contractors and businesses. To assess a client’s insurability, they had to check the entity’s background. This included current and past corporate ownership.

Solution: Jet connected with OpenCorporates to access official records. This included past directorships and possible predecessor companies. This helped them find any bad events in a company’s past that could increase its insurance risk.

Results

• Holistic historical insight: Better understanding of each client’s business legacy.
• Reduced underwriting risk: Quick flagging of past bankruptcies or name changes.
• Improved compliance: Comprehensive records ensured adherence to insurance regulations.

Read the full Jet Insurance Company case study →

Case Study #8: Quantifind

Powering financial crime investigations

Challenge: Quantifind provides AI-driven solutions to detect financial crimes and illegal activities. They needed a strong source of verified company data. This data needed to be easy to query. It helps in investigating shell companies, fraud rings, or sanctioned entities.

Solution: Quantifind added corporate data from the OpenCorporates’ API to their predictive models. Investigators could then establish clearer connections between suspicious entities.

Results

• High-speed investigations: Automated data ingestion helped analysts focus on critical leads.
• Global reach: Access to international data has simplified cross-border investigations.
• Data-driven decisions: AI models were more accurate due to the historical corporate records.

Read the full Quantifind case study →

Key takeaways

1. Automation at scale: Companies switched from manual processes to automated workflows. They did this by connecting to a comprehensive data source. This was game-changing for KYC, due diligence, and investigations.
2. Risk reduction: Access to historical and ownership data helps with proactive risk management. This applies to everything from supply chains to insurance underwriting. It allows companies to move away from reactive approaches.
3. Faster decision-making: Quick entity verification speeds up customer onboarding and high-risk investigations. This leads to faster approvals and safer business choices.

Conclusion

Entity verification is crucial for compliance, risk management, and financial decisions. These case studies show how companies of all sizes used OpenCorporates’ comprehensive data. This integration helped them to:

• Automate and speed up critical processes.
• Enhance accuracy in assessing potential partners or clients.
• Track risks across corporate networks that are undergoing rapid changes.

OpenCorporates dedicates itself to promoting transparency in corporate data. This allows businesses to build efficiency, trust, and resilience in our connected world.

To learn how your organisation can use OpenCorporates data, speak to us today.

For more information

Learn more about how OpenCorporates’ data can help you understand corporate structures and manage risk. Reach out for a demo or explore our services.