KYC Solutions for Seamless Compliance & Risk Management

The main components or three steps that complete KYC compliance are customer identification (1), customer due diligence (2), and ongoing monitoring (3). This consists of verifying the user’s personal details, such as their government-issued ID document, to confirm their identity. After standard verification and user onboarding, ongoing due diligence measures are required, which means collecting extra information and detecting suspicious activity throughout the whole user journey. This is where risk assessment processes come in handy and enhanced due diligence (EDD) is applied for high-risk users. The last component, or ongoing due diligence, helps maintain compliance, which means maintaining accurate risk profiles. This is important, as risks change and standard users with a clean track record can develop fraudulent tendencies or be used as mules for money laundering.

Examples of KYC processes include various verification steps, which are vital for high-risk industries, such as crypto or fintech, to ensure there’s no fraud, sanctioned entities or money laundering on the platform, and all users are genuine and of age (applies for age-restricted service providers, such as adult content platforms). So, it depends on the jurisdiction, the industry, and the particular use case, but the most common examples of KYC include ID checks, biometric verification, age verification, address verification, and PEPs or watchlist checks to assess a customer’s identity and risk. In general, KYC is a part of a broader anti-money laundering (AML) framework.

It depends on various factors, for example, whether you’re building the solution yourself or using a third-party KYC software such as iDenfy. Alternatively, some smaller companies still use manual KYC checks, which involve hiring an internal compliance team that’s responsible for reviewing users’ ID documents and manually inspecting if they are genuine and belong to the person who’s completing the KYC verification. This tends to be more costly since it requires skilled professionals, not to mention a challenge when trying to scale. At iDenfy, we offer a unique pricing plan with multiple options for both small-scale startups and big enterprises with large verification volumes, helping you save time and money. 

With providers like iDenfy, digital KYC can be completed in minutes—sometimes seconds—using AI and automation. Manual processes, on the other hand, can take days and are prone to human error.

KYC is used in banking, fintech, crypto exchanges, online lending, insurance, and even gaming or marketplaces. iDenfy tailors its KYC services for different industries, offering flexible tools that match each business’s risk profile and regulatory needs.