Straight-Through Processing (STP)

Straight-Through Processing (STP) is the ability to complete a verification or onboarding workflow automatically, without human intervention, from start to finish.

How STP Works

Application → Auto-Verify → Risk Score → Decision → Onboard
     ↓            ↓            ↓           ↓          ↓
   (data)    (no manual)   (rules)    (approve)   (active)

All steps complete programmatically based on:

• Data matching against authoritative sources
• Pre-defined rules and thresholds
• Automated risk scoring
• Clear pass/fail criteria

STP Rate

The STP rate measures what percentage of applications complete without manual review:

STP Rate	Implication
>90%	Highly optimized, tight risk tolerance
70-90%	Typical for low-risk segments
50-70%	Moderate complexity, mixed risk
<50%	High-risk segment or process issues

What Breaks STP

Applications fall out of STP when:

• Data doesn’t match (name mismatches, address discrepancies)
• Entity resolution is uncertain
• Watchlist hits require review
• Risk score exceeds auto-approve threshold
• Missing required information

STP and KYB

For KYB, STP enables:

• Faster onboarding for low-risk businesses
• Reduced operational cost per verification
• Consistent application of rules
• Scalable verification volume

However, complex ownership structures, international entities, and high-risk industries typically require manual review.

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Related: Auto-Verification | Manual Review | Risk-Based Approach