Identity Verification and KYC – The Future?
Guessing the future is always dangerous (and usually wrong!) but there is so much activity in the sector that I’m confident the following changes will happen in the near future. One thing is for sure – as identity verification, KYC and AML legislation is implemented across more and more industries, the process of Client on-boarding and due diligence has to become simpler, cheaper and more efficient. At Kudos we provide KYC datasets across every continent (except Antarctica – even we can’t source datasets there!) and to an increasing range of industries other than the original Banking sector – from betting companies to online payment businesses to accountants to lawyers.
Equal Focus on Data and the System. There is still too much focus on the KYC system and not enough on the dataset. Service providers are usually focussed on the software and technology, with the dataset being seen as a commodity. This has to change – if the underlying data is wrong or incomplete, the best system in the world will fail. Kudos is already seeing the start of this change as we are approached by an increasing number of system providers to source and provide the datasets. This makes sense – we have built our business over the years by sourcing and providing data so we have the necessary worldwide relationships, skills and knowledge. Let the system guys focus on the systems. Let the data guys focus on the data. Then let the two experts work together.
Consolidation. The growth in identity verification & KYC suppliers has been exponential in recent years. Kudos has some clients who have built their own systems and solutions. Others have bought off-the-shelf systems. Some host full datasets, some use API solutions. Consolidation of service suppliers, systems and datasets will happen over time, resulting in economies of scale, improved efficiency and reduced costs.
Biometrics. The use of biometrics in identity verification & KYC will become just another part of the process. Iris recognition, fingerprints, even facial recognition are already in place for many other uses and are being tested and implemented by a large number of KYC service providers and users. Hand in hand with this development comes the increased need for data security and the eradication of the (seemingly endless) data breaches occurring around the world. Imagine a future where your biometrics are being traded on the black market – it doesn’t bear thinking about.
Streamlining. Solutions and processes for KYC and on-boarding must become quicker, easier and more efficient. And they will as the systems guys get clever with their technology and KYC becomes the norm.
Part of Life. KYC verification and checks will become a normal part of life, both personal and business. As previously mentioned, Kudos are already seeing demand for supplying identity verification & KYC datasets into industries other than financial services. Anti Money Laundering legislation will only increase in the future, eventually making KYC a requirement for any kind of transaction.
Do you think I am right? Comments appreciated.
Kudos Data Solutions provide KYC datasets around the world (except Antarctica!) We do NOT provide KYC systems. We DO provide data to end users and solution-providers. For more details please contact us on 0330 043 1583 or email firstname.lastname@example.org