When it comes to choosing a Know Your Customer (KYC) partner, there are several key considerations to keep in mind. In this blog, we’ll go over some of the most important factors to consider when selecting a KYC partner, including Identity Verification (IDV) features, Anti-Money Laundering (AML) capabilities, pricing, scalability, expertise, data security, cost, integration with your systems & support.
- Identity Verification (IDV) features: A key part of the KYC process is verifying the identity of your customers. Look for a KYC partner that offers a range of IDV features, including the ability to verify identity documents depending on the geography (like SSN, DL, Passport etc), perform facial recognition checks, liveness checks and verify personal information such as addresses and phone numbers.
There are several different types of database checks that a KYC partner may offer, such as criminal record checks, credit checks, address verification and employment verification. It’s important to consider which types of checks are most relevant to your business and to choose a partner that offers them.
It is also important to consider the size of the SDK the partner offers and the Platforms supported (minimum android and iOS versions, web SDK) by it. - Anti-Money Laundering (AML) capabilities: To help prevent financial crimes such as money laundering and terrorist financing, it’s important to choose a KYC partner that can perform thorough AML checks on your customers. This includes checks such as enhanced due diligence, sanctions screening, transaction monitoring, watchlist checks and suspicious activity reporting. Look for a partner that has the necessary resources and expertise to perform these checks effectively. This can be done by listing the data sources the partner uses for AML checks.
- Integration with your systems: It’s essential to choose a KYC partner that can easily integrate with your existing systems and processes. Look for a partner that offers API integration or other options for seamless integration.
This can be done by checking –
a. The integration, testing and launch process
b. Mechanisms to integrate
c. Time taken to integrate before beginning to verify customers - Geographical Coverage/Scalability: Your KYC needs may change over time, so it’s important to choose a partner who can support your growth. Look for a partner that has the infrastructure and resources in place to handle your current and future KYC needs and who offers solutions to multiple countries and markets.
- Compliance standards: Compliance is a critical consideration when choosing a KYC partner. Look for a partner with a strong track record of compliance, including experience working with regulatory bodies and a deep understanding of relevant regulations and best practices. In addition, look for a partner that can provide support and guidance on compliance issues to ensure that your business stays compliant with all relevant regulations.
- Data security: Protecting customer data is of the utmost importance, so it’s important to choose a KYC partner that takes data security seriously. Look for a partner that has robust security protocols in places, such as encryption and secure data storage.
- Pricing: Cost is always a consideration when choosing a KYC partner, but it’s important to balance price with the value a partner brings to your business. Look for a partner that offers competitive pricing, but also provides the services and support you need.
- Expertise/Reliability: It’s important to choose a KYC partner that has a track record of success in the industry and a deep understanding of KYC regulations and best practices. Look for a partner that has experience working with businesses like yours. You can verify this by checking the number of users verified by the partner, their service uptime commitment etc.
- Support: Finally, consider the level of support & SLAs offered by the KYC provider. It can include an issue resolution timeline, an escalation matrix, and 24/7 availability. Look for a provider that provides timely and helpful support to ensure that any issues or questions can be addressed promptly.
By keeping these considerations in mind, you can choose a KYC partner that will help your business effectively and efficiently comply with KYC regulations while protecting customer data and streamlining your processes.
We have compiled a detailed list of parameters along with priority within each category that can help you get started on the evaluation & finalize the right partner.
