What's the Dilly-o with business verification (KYB): a buyer's guide for credit unions

The Dilly-o

Start by checking what your digital banking platform or account opening provider already includes for business verification, also called know your business (KYB). If it has nothing, buy a US-focused KYB tool that checks state registries, beneficial owners and the tax ID, and that plugs into the systems you already run. Whatever you buy, keep your written procedures current, because the tool supports your program but does not replace it.

How we'd size up a vendor

1. Registry coverage - does the tool confirm a business with the Secretary of State in every state where your business members are registered? Ask for live registry checks rather than a stale copy of the data, since a fake LLC can be filed in minutes.
2. Fit with your systems - does it connect to your core and digital banking platform, or will your staff retype every result? Ask for a reference credit union on the same core as yours.

What changed this year

In August 2026, FinCEN ended beneficial ownership information (BOI) reporting for US companies.¹² You still must collect it when a business first opens an account, when facts call earlier information into question, and when your risk-based procedures require it.⁵ You also still need written beneficial ownership procedures.⁶⁵ Nacha's 2026 rules treat payments induced by misrepresenting identity, authority or account ownership as fraud, and Nacha stays neutral on the methods you use to detect it.⁷⁸

Will it work with your systems?

Alkami announced its acquisition of MANTL in 2025.⁹ Lumin Digital says its digital account opening covers ID scans, liveness checks, know your customer (KYC) and credit checks.¹⁰ We've confirmed that Signzy is listed on the Jack Henry Fintech Integration Network for credit unions on Symitar.^C Ask your provider whether KYB is built in, which KYB vendor sits behind it, and whether results write back to the member record on your core.

What other credit unions did

America First Credit Union built its digital business account opening platform with a partner, Loquat, Inc.¹¹ Before you sign, we'd call peers like these and ask which checks run on their own and which still land on a person's desk.

What your examiner will ask

Federally insured credit unions have had to follow the beneficial ownership rule since May 11, 2018.¹² Your customer identification program needs written, risk-based procedures.¹³ The FFIEC exam manual adds that the procedures must say when not to open an account.¹⁴ They must also set the terms on which a customer may use an account while verification is pending.¹⁴ Have your procedures, your vendor due diligence file and the signed contract ready to show.

What it costs

Most KYB vendors don't publish credit union pricing, so expect to ask for a quote. Enigma charges nothing for a KYB search that finds no match, and Persona and Sumsub bill per successful verification.¹⁵¹⁶ Watch minimums: a $20,000 annual minimum at 1,000 checks a year adds $20 to each one.¹⁷ Vendors don't publish implementation times either, so ask for a dated plan on your core. NCUA notes that some credit unions accepted significant buyout or termination penalties, believing they could not negotiate them.¹⁸ It adds that early termination, escape and default terms are often negotiable.¹⁸ We'd negotiate those terms before you sign.

Food for thought

FinCEN no longer requires US companies to report their beneficial owners to it.¹² So we'd ask each vendor whether it checks a business once at account opening or keeps monitoring it afterward.