KYC (Know Your Customer) is a list of checks which must be made by financial service providers to confirm the identities of their clients. KYC is typically used during onboarding: it helps check for anti-money laundering (AML) and combat the financing of terrorism (CFT). KYC is mandatory in most parts of the world.
The digitalization of KYC is leading to a boom in FinTech and RegTech solutions, since digital KYC compliance makes possible a faster and frictionless onboarding. Constantly shifting legislation is an increasingly difficult challenge for financial institutions, so the ability to quickly adapt and iron out the onboarding process can make or break a financial institution.