In an increasingly digital and interconnected world, the term "KYC" or "Know Your Customer" has become a vital component of business operations across various industries. KYC refers to a set of processes and procedures designed to verify the identity of individuals or entities, particularly customers or clients, in order to mitigate risks, prevent fraud, and ensure compliance with legal and regulatory requirements. In this article we will take a closer look at understanding KYC compliance, its importance and advances in the financial industry.

  • What is KYC, and why KYC compliance is so important.
  • The importance of KYC software for digital lending companies and their features.
  • Top 10 software solutions to consider integrating into your loan management system.
  • What the KYC requirements for lending companies are and how they help to curb financial crimes.
  • The exciting new technologies being used in the field of KYC.

Know Your Customer, and The Importance of Compliance for Digital Lending Companies

KYC entails the collection, verification, and analysis of customer information to establish their true identity, assess their potential risk, and determine whether they meet the criteria for engagement with a business or financial institution. The information typically gathered during the KYC process includes personal identification details, financial information, and sometimes even biometric data, depending on the nature of the business and the regulatory environment.

It is a critical component of modern business operations, as it serves as a cornerstone for building trust, preventing fraud, and ensuring the integrity of financial systems. The following elements are essential for KYC compliance:

  • Fraud Prevention: One of the primary reasons for KYC compliance is the prevention of fraud. By verifying the identities of customers, businesses can significantly reduce the risk of fraudulent activities such as identity theft, account takeovers, and financial scams.
  • Risk Mitigation: KYC helps organizations assess the risk associated with each customer or transaction. By categorizing customers into different risk profiles, businesses can allocate resources more effectively and apply enhanced due diligence measures when necessary. Know more about our risk decision engine solution.
  • Legal and Regulatory Requirements: Governments and regulatory authorities around the world have implemented stringent laws and regulations to combat money laundering, terrorism financing, and other financial crimes. KYC compliance is often a legal obligation, and failing to adhere to these regulations can result in severe penalties and reputational damage.
  • Reputation Management: Maintaining a reputation for integrity and trustworthiness is essential for businesses, especially in the financial sector. KYC compliance helps organizations build and maintain the trust of their customers and partners by demonstrating a commitment to transparency and ethical conduct.
  • Customer Protection: KYC measures also benefit customers by safeguarding their sensitive information and financial assets. When customers know that a business has taken steps to verify the identity of its clients, they are more likely to feel secure and confident in their dealings.
  • Operation Efficiency: Implementing an effective KYC process can enhance operational efficiency by streamlining customer onboarding and reducing manual intervention. This, in turn, can lead to cost savings and improved customer experiences.
  • Global Expansion: For businesses looking to expand internationally, KYC compliance is often a prerequisite for entering new markets. Adhering to local KYC requirements ensures a smoother market entry and regulatory approval.
  • Data Security: KYC providers are also responsible for safeguarding the data they collect and store. This commitment to data security is crucial in an era where data breaches and privacy concerns are prevalent.

10 KYC Software Solutions

Choosing the right KYC software can be a daunting task given the plethora of options available. To make this task easier, we've compiled a list of the top 10 KYC software solutions that cater to a variety of needs and preferences.

1. Veriff

(Fraud prevention platform): Their powerful AML Screening provides end-to-end anti-money laundering compliance. It verifies the identity of new customers, screens them against global PEP and sanctions watchlists, and checks for negative news. The platform specialised in fraud prevention and compliance, helps to build trust with your customers, improve UX and rive growth for your business.

  • Machine learning and AI: Veriff uses a hybrid approach, harnessing both AI and their global team of expert verification specialists ensuring no fraud slips through the cracks.
  • More data points: crosslink sessions using hundreds of data points, 
analyzing both device and network to ensure bad actors stay out every time.
  • Global coverage: Veriff supports 11k identity documents from over 190 countries, in over 47 languages, making it the most comprehensive identity verification company across the globe.

Identity verification quick and easy:

  • Fast decisions: a 98% check automation rate gets customers through in about 6 seconds.
  • Simple experience: real-time end user feedback and fewer steps get 95% of users through on the first try.
  • More conversions: up to 30% more customer conversions with superior accuracy and user experience.
  • Document coverage: an unmatched 11K+, and growing, government-issued IDs are covered.

2. Ondato

(KYC compliance platform): SaaS-based solutions that offer KYC compliance processes from an identity verification service and business onboarding to the entire client lifecycle and user-based management. Ondato solutions can be tailored according to your business industry and needs.

For Financial Services:

Ondato provides solutions for financial services, looking into ways to streamline their KYB/KYC identity verification procedures. A one tool unified dashboard with customisable modules allows freedom and makes staying in line with the latest AML developments easier to manage.

  • Cut KYC-related business costs up to 90%.
  • Simplify your internal processes and save time.
  • Set your rules from onboarding to lifecycle management.
  • Stay up-to-date regardless of your location or regulatory changes.
  • Enable identity fraud prevention.


(Fraud prevention): When it comes to digital footprint analysis, SEON is an incredibly helpful tool to help you glean your customers’ true intentions. SEON does not provide full KYC functionality – but it can save companies a lot of time and money spent on KYC by weeding out fraudulent users before they reach that crucial step.

As a result, you will not need to spend money running KYC checks on demonstrably bad actors who would be rejected anyway. In addition to helping save resources, this boosts an organization’s fraud prevention efforts. SEON offers solutions for different industries like online lending, banking and insurance, buy now pay later (BNPL), payment gateways, and more.

Solution for Online Lending:

Preemptively eliminate defaulting customers and enlarge your market by taking control of your credit risk analysis. SEON lets you scale your payday loan or fast loan business by reaching the right borrowers, and ensuring they truly are who they say they are.

  • Find future defaulting customers: Perform a complete digital footprint analysis that spots stolen or fake ID. Stop losing money to defaulting customers before they can create a fake account, and improve your credit scoring accuracy.
  • Onboard more customers: Widen your market reach by balancing risk and new customer lending thanks to precise data enrichment. Ensure you don’t lose market shares to competitors by onboarding without friction and unnecessary obstacles.
  • Improve credit risk analysis: Harness the power of machine learning rules to get more precise risk analysis scores for each customer – without increasing manual efforts or complex technical hurdles. Enrich your existing datasets for more intelligent decision making that doesn’t slow your business down.
  • Decrease manual review efforts: Save time, money and staff resources on manual reviews by automatically delivering important data to your analyst / fraud manager in a clear dashboard. Combine the power of email, IP, device and behavior analysis with machine learning to support your decisions, and access visualization and reporting features at your fingertips.

4. Pliance

(AML & transaction monitoring): A modern approach to combating financial crime, the tool helps you run accurate AML checks in milliseconds, Automatically screen your customers instantly during onboarding and get notified when something changes. With Pliance you can experience a quicker onboarding process with automated screening.

Pliance API is fast, modern and well-documented, providing a seamless integration to your systems and workflows. Structure your processes and routines according to your company’s best practices, then plug Pliance in where needed. The integration helps you to scale your business compliantly, with less risk, less work and less money being spent.

Cost efficient, and a timesaver:

  • 1 million users actively monitored: Pliance has monitored over 1 million users and counting, while maintaining a high standard for AML compliance.
  • Up to 90% reduction in false positives: With Pliance you have more time to focus on your core business, by reducing false positive rates.
  • 30%+ in cost savings: Automating AML processes is not only a timesaver, but cost-efficient. Pliance's customers make a significant cost savings when using the integration, that can be up and running in just few days.

5. Facephi

(Experts in digital identity): they provide secure, fast, and easy-to-use technology. Specialized in digital onboarding and biometric authentication solutions. Facephi enables the KYC process for remote customer onboarding.

Facephi’s secure biometric identity verification removes the need of a customer being present physically, helps to simplify the KYC processes in line with compliance to mitigate fraud and regulatory risks while accelerating conversion through superior customer experience. It can replace cumbersome, inefficient processes with an automated real-time biometric facial recognition to help businesses establish trust with customers reliably and securely.

Digital identity solutions:

  • Digital identity platform: Facephi Identity Platform offers fully customisable digital identity verification processes, specific to your needs. The platform boasts a multitude of biometric solutions for an accessible and efficient user experience, while ensuring ultimate security for both organisation and end-user. 
  • Digital onboarding: The solution enables automatic document capture, and remote user onboarding and authentication, through selfies with passive liveness checks. Using advanced OCR, a client can accurately extract all the data from an ID document (a passport, driver’s license etc.) in real-time. Then, it authenticates the user through facial biometrics, comparing the user’s selfie to the image in the ID document or on other databases. 
  • Authentication: Enable secure user access to any application or physical environment. Improve the security of transactions with trusted biometric authentication. Be sure your customers are who they say they are with 1-1 and 1-N authentication.

6. Vespia

(Fully automated KYB & AML compliance solution): streamline your business onboarding with Vespia, collect and ore-fill data automatically using business registers, AML databases, and Vespia Onboarding Flow. Why choose their AML compliance solution?

  • All-Encompassing Coverage: The company counts on over 4000+ Sanctions lists, 4 PEP Tiers, RCAs, Adverse media, and even Google search. From international figureheads to small local politicians, their AML Check ensures nothing slips through.
  • AML Risk Analysis: Whether you lean towards traditional rule-based methods or innovative AI, Vespia's solutions are designed to fit your style. Make decisions faster and with confidence.
  • Reduce False Positives: Eliminate the hassle of irrelevant alerts. Vespia's smart filtering minimizes false positives, letting you focus on what truly matters, enhancing both efficiency and accuracy.

Their solution for Financial Services

Central to the success of any financial services firm is the onboarding of investors. With the time it takes to onboard a typical business customer being anywhere between 2 weeks to 4 months,  Vespia cuts this to a fraction of the time. Their AI draws on over 1,500 data points from over 5,000 official sources, providing you with unmatched data collection and data analysis. With the platform automatically assessing risk, it places you in a position to make far quicker and more insightful decisions.

  • Faster Business Onboarding: Vespia’s AI-driven software conducts comprehensive client checks rapidly and reliably, allowing you to take on clients with greater ease and security.
  • Increased Transparency: The platform’s extensive data checks and screening capabilities let you know exactly who you’re dealing with at all times.
  • Enhanced Risk Management: Vespia’s automated risk assessment functionality grants decision-makers the insight they need to capitalize on opportunities more effectively.

7. Salv

(AML platform): Salv is the world’s first real-time collaborative financial crime-fighting network. They enable tactical information sharing for organizations across sectors and national borders, and give compliance teams the tools to fight crime more effectively.

As noted by the FATF, constructive and timely exchange of information is necessary for effective detection and prevention of ML/TF threats. Real-time collaboration and information sharing is here to stay and bound to become a powerful tool in the near future. Banking and financial services companies use Salv to navigate the regulatory complexities, reduce the risk of non-compliance, and improve operational performance.

With Salv you can:

  • Fight financial crime: Stop criminal money 200x faster by joining the only real-time cross-border information-sharing platform – any financial institution can participate in Salv’s network.
  • Improve client experience: Your client’s money is blocked? Reduce the impact of compliance checks on clients in real time. Cut the case resolve time from days to hours or minutes.
  • Get compliance covered: Keep up with AML and GDPR regulations and reduce your company’s risk of non-compliance. Enhance your compliance toolset with information sharing. Salv’s automated, flexible financial crime compliance solutions reduce up to 80% of repetitive manual tasks and cut down the number of false positive alerts.

8. Checkin

(KYC compliance platform): Get every feature you need to successfully handle onboarding and KYC compliance across 165 countries in a single solution. With Checkin integration you have the possibility to grow faster with AI-driven localization, stay compliant with regulatory requirements and heavily encrypted & EU-restricted data processing.

Increasing regulation is creating barriers for onboarding new customers. solves this by using AI to generate engaging and compliant onboarding flows for customers globally. Their integration fully supports direct connection to nearly every platform. Choose from a range of pre-configured options or go with a fully customized integration.

Checkin Finance and Crypto Solution:

  • Verify any ID Document: Let customers easily and securely verify their identity in a matter of moments by checking their ID documents. Checkin supports 11,000+ ID documents from 165+ countries.
  • OCR & Data Extraction: Collect any data from ID documents. Save your customers’ time by pre-filling online registration forms.
  • KYC & AML Screening: Check customers against all global law enforcement databases, sanctions, PEP, and other sources.
  • Face Matching & Liveness: Let customers take selfies or perform live actions with their camera to instantly verify it’s a real person that matches their ID.

9. Regula

(KYC automation): from document uploads to liveness checks, create a custom KYC workflow that protects your business and ensures a smooth user experience. Regula offers a comprehensive ID verification solution for fully automatic reading and authentication of passports, ID cards, driver's licenses, visas, and other identity documents. Their cross-platform biometric verification solution allows digital identity verification process with liveness detection, face matching and identification.

Regula Fintech and Crypto Solution

Mitigate fraud with an identity verification solution that’s as advanced as your digital finance service. Proven by national banks, border authorities, and businesses worldwide, Regula brings you an unprecedented level of security that also comes with convenience for end users.

  • Streamline KYC validation: Welcome customers from any part of the globe with a system that can automatically verify almost any identity document in any language. Be it a passport, national ID, or driver’s license, the system will instantly recognize its type, security features, and whether the submitted document ticks all the boxes. The secret weapon is the world's largest database of over 12,000 document templates from 248 countries and territories, accurately gathered, examined, and maintained by Regula.
  • Build your custom workflow at ease: Get up and running with Regula in days, not weeks or months. Thanks to Regula Web API and Regula SDKs, you can easily integrate it with your web-based and mobile apps.
  • Enable robust online identity checks: Provide a secure perimeter for operations with digital assets by stopping bad actors from the get-go. With Regula’s state-of-the-art identity verification solutions, you'll instantly authenticate users without adding extra friction to the UX.
  • Build trust at the first touch: More than half of all virtual asset providers worldwide have weak KYC protocols, CipherTrace reports. Bullet-proof identity verification is essential for stopping fraud with digital assets. That’s exactly what Regula brings to the table.

10. ShuftiPro

(Identity verification): Unleash the power of AI-driven identity verification solutions that surpass traditional KYC & AML checks to boost conversions by deterring fraud and ensuring global compliance. Shufti Pro's industry leading KYC, KYB and AML compliance solutions provide the greatest global coverage, speed and accuracy for verifying your customer's identity:

  • Flawless Onboarding: Verify and onboard every legitimate customer seamlessly.
  • Enhanced Due Diligence: Go beyond basic verification for comprehensive compliance checks & risk assessments.
  • KYC Journey Builder: No-Code integration without complex development, saving time and resources.
  • Streamlined Verification: Achieve 99% accuracy with 10,000+ ID types, 150 languages, and 230+ countries.

Their Solution for The Banking Industry:

ShuftiPro provides banks with rigorous online identity verification and AML screening solutions for secure client onboarding. Their KYC and AML solutions eliminate financial fraud risk to ensure compliance with banking regulations.

Their KYC solution automatically onboard customers in real-time, anywhere, using any kind of government approved identity document:

  • Verify within seconds.
  • 99% accuracy.
  • 9000+ ID documents.
  • Reduce fraud.
  • Lower customer drop-offs.
  • Faster and easier onboarding.
  • Borderless growth.

An Array of Indispensable KYC Software Features

Choosing the right KYC software involves a careful evaluation of its features. One such feature is Real-time Video and Liveness Verification. With the advent of advanced technologies, it's now possible to verify a user's identity remotely, in real-time. This not only improves the user experience but also significantly reduces the chances of identity theft, a common issue in the digital lending space.

Another critical feature is the incorporation of AI and Machine Learning automation tools. These technologies are designed to sift through vast amounts of data, identifying patterns and anomalies that could suggest suspicious behavior or potential financial fraud. By automating these processes, digital lending companies can focus more resources on growth and customer service.

Document Verification is another key feature of a robust KYC software. With this feature, user information and documents are automatically and accurately verified. This not only saves time but also ensures that all data meets the necessary regulatory standards, thus reducing the risk of criminal activities.

Finally, Data Enrichment and Digital Footprint Analysis features provide comprehensive background checks and risk assessments of potential customers. These features allow lending companies to make informed decisions based on reliable and extensive data.

Choosing a KYC Solution Provider: Key Parameters to Consider

Selecting the right KYC solution provider is a decision that should be made after careful consideration. There are key parameters that companies should focus on to make an informed decision, to include in their lending software.

Firstly, the chosen software should align with the legal requirements that the company must meet. Compliance is non-negotiable, and the right software should facilitate this, not make it more challenging.

Secondly, the software should be compatible with the company's current systems. This ensures a smooth integration process and prevents potential operational hiccups.

Thirdly, cost is an important factor. While it's crucial to have a robust KYC system in place, it's equally important that the investment makes financial sense. Therefore, companies should weigh the cost of the software against the value it provides before making a decision.

Lending Companies and KYC Requirements: A Necessary Alliance

Lending companies are bound by stringent financial regulations aimed at reducing fraud. These regulations ensure that the integrity of financial products and services is maintained and that customers are protected. Consequently, lending companies need to meet specific KYC requirements. The right software makes this task less daunting by automating many of the processes involved in meeting these requirements. This not only ensures compliance but also frees up resources that can be channeled to other areas of the business. ‘

That’s the main reason why it’s vital for lending providers to explore and analyze different KYC options that are suitable for their needs and their customers. Each lending company has its own customer profile, offered services, and operational requirements. This tailored approach allows them to better cater to their customers' needs, reduce the risk of fraud, enhance overall customer satisfaction, and more benefits that we’ve mentioned in the article.


In conclusion, KYC, or Know Your Customer, stands as a paramount cornerstone for lending companies in their pursuit of trust, security, and regulatory adherence. Its significance lies in its ability to fortify fraud prevention, ensure legal compliance, and enhance the overall integrity of financial operations. For that reason in Fintech Market we have available different KYC providers that you can easily integrate into your lending software or other financial service platform. Know more about our loan origination software.

Moreover, as new KYC technologies and methodologies continue to emerge, staying open to innovation and periodically reassessing their KYC solutions ensures that lending companies remain at the forefront of industry best practices, thereby future-proofing their operations and maintaining their competitive position in the market.

About Fintech Market

Fintech Market (FTM) operates in the lending software market, offering a comprehensive SaaS-based loan management system for financial service providers. It includes essential features such as CRM, KYC, risk management, and debt management for loans, deposits, current accounts, and investments. With tailored solutions to optimize their operations, FTM serves neobanks, SMEs, car leasing companies, and buy-now-pay-later companies in the EU, Mexico, and Indonesia.