SO(so)S - Save Our Secretary of State…..and time.
Glancing at the SOS acronym you can’t help but flinch as you digest its meaning. In FinTech, SOS is one of the largest roadblocks in B2B underwriting. SOS, Secretary of State. Why? When attempting to verify an active business with the Registered State, an underwriter must combat the inconsistencies of how each state reports. It is a legitimate two-to-five minute process per deal, and a reminder of the non-standardized business verification reality. (Don’t worry, there will be a solid rant on driver’s licenses in a future post!)
It’s worth acknowledging the "why."
Why is SOS a critical part of a KYB policy? It is one of the many ways we verify the identity of the business. This word, "identity," is so engrained as consumer vernacular that often business identity is left in the dust; yet it is critical to B2B financial transactions of any kind. If the business is not legitimate, one can expect nothing but loss - lots and lots of loss - followed by a really unhappy sponsor bank and months (or years) of underwriters second-guessing themselves on future deals. From a sales perspective, a recent loss, whether the agent's responsibility or not, means months of nervous, overthinking underwriters slowing down deal flow. It’s like being punished by mom for something you didn’t do.
Side note: Shout out to people tracking business trends, would someone please track the delta between pre- and post-underwriting processes after a loss?
With Autoboard, we’ve established SOS as a worthy verification, and we're thrilled to announce the two ways through which we solve this cumbersome underwriting step:
1) Microbilt’s Secretary of State: It is largely consistent, accurate, and instantaneous.
2) Soon, you'll have the ability within Autoboard to access the the relevant state databases and verify whether the business is in good standing directly from the Review screen.
Autoboard makes verifying Secretary of State information Instantaneous. Saving an underwriter’s time means more deals. More deals mean more money.
While Microbilt is solid, we want to remind you that every state reports in different ways. States like Delaware and Wyoming return the same vague response via Microbilt that you get directly on their respective SOS websites. On the flip side, we found that Florida's SOS website provided a great deal more than was returned to us via Microbilt. Since the Sunshine State really delivers on transparency when it comes to registered businesses, we decided to give underwriters the flexibility to go directly to the SOS website while still within our single pane-of-glass review screen. They never have to leave the deal.
We will say it again: verifying a business is rough stuff! We want to enable your underwriters to make smart, accurate decisions. Our SOS integrations definitely check off one of the thousands of KYC, KYB, AML, and the rest of the alphabet boxes. This feature release will continue to move our clients towards 100% confidence in approvals, completed in a fraction of the time.