KYC 3.0
KYC is an everyone problem
At Blackbird, we’re committed to KYC transformation. Transformation means more than just workflow automation. It means delightful, simple, and zero friction for all parties, and especially those sharing private and sensitive data.
We have lived the KYC pain on both sides… the document uploads, email threads, and endless clarifications. Even worse – the repetitive nature of it all each time a new client or firm is engaged.
Friction is at its worst when affairs are complex. That’s where we come in. We’re building KYC 3.0 – a zero friction, delightful KYC experience for the most complex affairs.
The mission
Complex KYC is a high-stakes process that often feels like navigating a maze of paperwork, regulations, and compliance requirements. Manual trackers, Excel spreadsheets, long email threads with attachments here there and everywhere… it’s impossible not to drown in process management.
Complex KYC is an everyone problem: business critical, and all consuming. Getting it right counts. Its the difference between reputation-enhancing and brand-damaging. The difference between value-creating, and value-destroying. Between establishing high-trust relationships and relationships predicated on frustration.
How did we get here: KYC 1.0
Let’s turn back the clock – back to when “KYC” wasn’t just a buzzword, but just a way to get paperwork from one desk to another. We’re talking about the days when compliance teams lived in the land of paper forms, manual data entry, and good old-fashioned human error. A new client would receive a stack of paper forms, provide photocopies of documents, and wait for the approval process to kick off – fingers crossed.
In the world of KYC 1.0, nothing was particularly fast or accurate. Verifying a customer’s identity involved flipping through physical records, matching signatures, and reviewing a set of documents, all manually. Mistakes were commonplace, forms were lost, and compliance officers spent more time chasing down missing information than actually assessing risk.
Processes were somewhat reliable, but they were cumbersome, inefficient, and just plain tedious. It was an analog nightmare that no one really enjoyed. Pain points? Endless. Slow, error prone, and an utter lack of scalability to name a few.
Software eats world: KYC 2.0
Cue the rise of B2B SaaS, and the dawn of KYC 2.0. The 2000s and 2010s introduced a whole new level of sophistication. Instead of manually sifting through paper files, compliance teams could now use software tools to automate parts of the process. And while we’re all grateful for the reduction in paper cuts, this wasn’t quite the revolutionary overhaul that the industry needed.
KYC 2.0 introduced compliance teams and clients to a world where businesses moved away from physical paperwork toward digital forms, document uploads, and early automation. We entered the world of cloud-based platforms that let institutions collect, store, and verify customer data more efficiently. Software could now automatically verify identity documents, flag suspicious entries, and generate compliance reports in seconds.
But here’s the thing: While KYC 2.0 automated some processes, it didn’t solve the KYC problem. It fell short in two critical ways.
First, it failed to eliminate friction for the client… clients could scan and upload documents instead of mailing them, but there were still plenty of manual steps needed. Data entry was still a chore, and clients were still stuck going through the same process every time they engaged with a new firm.
Second, it failed to afford firms with the flexibility to create custom KYC workflows around their existing processes. So adopting KYC 2.0 software necessarily meant compromise.
KYC 2.0 was a huge step forward but it still left much to be desired. Efficiency improved, but the experience? Still pretty meh.
KYC 3.0: A Zero-Friction, AI-Native Future
We are proud to pioneer KYC 3.0. KYC 3.0 isn’t just about automating workflows or digitizing forms. It’s about eliminating friction for both firms and clients through a zero-hassle, AI-native experience. In KYC 3.0, everything is connected, automated, and, frankly, delightful. The process isn’t just faster; it’s smarter. Here’s what KYC 3.0 brings to the table:
Never manually fill in a form again
Goodbye
Repetitive clunky forms and document uploads.
Hello
1-click sharing, following which AI automatically maps and populates relevant data in keeping with context.
Intelligent verification
Goodbye
Multi-stage verification and fragmented data sources.
Hello
In-platform verification for everyone and everything in one place - UBOs, multi-layered structures, trustees… you name it.
One time only
Goodbye
Re-submit information every time a client engages with a new firm.
Hello
KYC passport: a secure, digital repository that clients carry with them wherever they go.
Default encrypted
Goodbye
Sharing sensitive data over email and poorly permissioned shared folders.
Hello
Highly secure and encrypted communication and information management platform.
Delightful UX
Goodbye
Shared folders, document checklists, and drawn out Q&A
Hello
KYC that’s as easy to execute as unlocking your phone with facial recognition.
End-to-end flexibility
Goodbye
Preset workflows that force you to bend or break protocol
Hello
Flexible architecture, so that you can do KYC your way.
So what?
For firms
KYC 3.0 doesn’t just save time – it transforms operations. Reduce operational costs, scale capabilities without scaling headcount, and turn KYC into a value-driver by delighting clients. No more chasing. No more tracking. Enjoy a smoother, faster process that makes clients happy while reducing compliance risk.
For clients
KYC 3.0 means no more redundant paperwork or waiting around – simply click to share. The days of being asked to “resubmit your documents” are over. Sleep easily knowing your data is secure, easily accessible, and up to date, instead of downloaded onto someone’s laptop or maintained in a poorly managed shared folder.
If you’re as excited about building KYC 3.0, we’d love to hear from you.
Mati & Nir, cofounders
