KYC (Know Your Customer)

KYC is not just an important part of regulatory compliance – it's one of the hardest parts of an app's customer flow to get right according to experts.

One of the major pains in creating an effective FinTech product is complying with the ever-increasing KYC requirements and financial regulations. With FinTech apps constantly flooding the market, FinTech app design might seem like a pretty sweet and easy job to do. But, in reality, designing a FinTech app is probably one of the toughest jobs out there as it carries a number of unique challenges that can significantly impact the efficiency and adoption of the final FinTech product. One such challenge is the KYC or Know Your Customer requirement that all financial services providers need to comply with.

KYC is one of the most important regulatory and compliance factors in FinTech product development. Its main goal is to protect financial institutions (FIs) by restraining potential fraudsters from accessing and exploiting the financial system. KYC, therefore, usually involves steps like establishing and validating customer identity, understanding the nature of customers’ activities and funds origin, and assessing any potential money laundering and terrorist financing risks.

In traditional banking, all these activities used to be managed manually by dedicated account managers and required customers to hand over their relevant ID and application documents in person. With the emergence of FinTech and digital banking, KYC has also been gradually moving into the digital space. Although this shift has brought a wide range of benefits to users and FinTech providers alike including quicker and more efficient onboarding and better user experience, several challenges remain.

digitify provides RegTech solutions such as KYC that bring the best innovations in technology to regulation, resulting in shortened launch schedules for your new digital products, enhanced experience for your customers, controlled risk management, and real-time compliance for your business. The idea is to help financial companies gather and process information on new and existing customers to help scrutinise ongoing transactions to identify any signs of a suspicious activity or breach of any regulations. We aim to highlight any gaps in business processes and avoid possible regulatory pitfalls.