KYC Software: Find Your Perfect Solution

Complying with KYC regulations nowadays is becoming more and more relevant. In some cases, particularly in the financial industry, complying with the KYC requirements is mandatory, so businesses may be penalized if found to be non-compliant.

With the increase in KYC implementation, comes an increase in available KYC solutions. There are a number of notable identity verification software options available today. It is important for companies to find the software that works best for their business.

What Is KYC Software?

KYC software is specifically designed to help clients (companies and financial institutions) verify information about their potential customers. In order to prevent money laundering, identity fraud, terrorist financing, and other financial crimes, companies are required to complete an identity verification process known as ‘Know Your Customer’ (KYC).

Using a KYC software instead of manually checking all the documents saves the company money, time, and resources. With it, they are able to quickly verify relevant legal documents, as well as ensure that their customer is real and not a risk to the company.

KYC Software Benefits

The digitization of KYC has proven to be very successful. Not only does it keep up with the ever-changing methods financial criminals use to commit their crimes, digital KYC is also customer friendly.

KYC identity verification software allow customers to:

Quickly and easily upload the documents that are required
Complete the process remotely, anywhere, anytime

KYC identity verification software also benefits the company by:

Streamlining the customer onboarding process
Lowering abandonment rates
Improving time and cost efficiency
Storing customer data for continuous monitoring and record-keeping
Reducing the compliance team’s manual workload
Decreasing the risk of human error

The complete KYC process software

For companies that have strict KYC guidelines to follow, this type of KYC software is the most recommended. Not only does it verify your customer’s identity, but it is also able to provide the company with more information regarding a potential customer.

‘Customer Due Diligence’ and ‘Enhanced Due Diligence’ are steps in the KYC process that deal with risk assessment. By using the KYC software to gather more information on the potential customer, the company is able to make a more informed decision.

Choosing a KYC Software

You can choose the best KYC software for you in three easy steps:

1. Familiarize yourself with the specific needs of your company.

What kind of KYC software your company requires depends on a variety of different things. Among these are:

The daily volume of customer onboarding
How big the company and its compliance department are
Current automation to manual review ratio

2. Prepare a list of requirements

What kind of KYC requirements will your company need to meet (standard, advanced, etc.)? What do you expect from the KYC software provider?

3. Define key issues for the KYC provider to handle.

Find potential issues and make your KYC provider aware of what those challenges might be.

Key Features of KYC Software

Choosing the right KYC software can be difficult. Here are some key features to look for in reputable KYC software:

Security: You should always ensure that the software comes with the proper security measures.
Company compatibility: There are several types of KYC software available, ranging from individual components like identity verification to more comprehensive end-to-end solutions covering KYC, AML, and anti-fraud. Discover which KYC software would best suit your company’s needs.
Quick and easy integration: Search for a vendor that offers hassle-free integration; this is more cost-efficient and less time-consuming.
Reference data connectivity: Ideally, the provider should have their own database, as well as the option to integrate other resources such as governmental databases, customer-specific data lists, etc.
Advanced technology: A good solution offers ML, AI, and biometrics.
Test the software: A sure way to evaluate the provider’s product is by testing it – try verifying both a legitimate ID and a fake/expired one to see whether the software is able to correctly identify the fraudulent document.
Speed vs. quality: Weigh up whether the software makes onboarding easier and whether it meets compliance requirements. The best solutions are those that perfectly balance the two.

Step 1

The customer starts the verification process, which is natively integrated into the whole KYC process of a company.

Step 2

The customer scans the document with their smartphone camera.

Step 3

The customer follows the onscreen instructions.

Step 4

PXL Ident extracts information from the ID document.

Step 5

PXL Vision’s technology identifies the document types and determines their authenticity.

Step 6

Verification takes place.

Speed and Accuracy

PXL Vision’s process ensures that the verification process is carried out quickly and correctly:

Check MRZ: We extract information from machine-readable code lines (MRZ) and run several checks on them.
Examine the visual inspection zone (VIZ): We review the rest of the document or VIZ.
Assess authenticity: We run multiple security checks and analyze hundreds of visual key features to ensure the document is legitimate.
Read biometric NFC chip (if possible): This allows us to read information from the document. We also make sure to inspect the chip to confirm that no tampering took place.

PXL Vision also provides a backup guide on how to manually examine identity documents.

PXL Ident Benefits

PXL Vision’s solution:

Helps your business to increase revenue by reducing dropouts during KYC-processes;
Gives your clients a quick and user-friendly experience that can be completed anywhere, anytime;
Is simple and easy to integrate, yet very reliable;
Can be flexibly adapted to your personal needs and offers lots of configuration options;
Is cost-efficient and designed to provide a high level of security.

What sets PXL Vision apart is its ability to achieve the perfect balance between easy-to-use and KYC-compliant.

It only takes under 30 seconds for the potential clients to verify themselves remotely.
It only takes two simple steps…

Our identity verification solution will not only save your company time but also increases customer satisfaction. It is reliable, user-friendly, and thorough.

How much does KYC software cost?

The cost of the software/provider correlates with the number of transactions on offer.

Is KYC software mandatory?

KYC compliance is mandatory for financial institutions, but only recommended for businesses outside the financial sector.

What is the difference between manual, paper-based KYC checks and KYC software?

KYC software allows customers more flexibility to comply with the requirements remotely. Digitization of the KYC process is less time-consuming and more effective.