2023 Know Your Customer Solution Scorecard

Know Your Customer (KYC) protocols are the bedrock of robust identity verification. Understanding at a granular level whom an organization is doing business with translates into a strengthened defense against identity fraud and, on a grander scale, is often the difference between detecting and preventing major financial crimes, such as money laundering or terrorist financing.

KYC is a standard that ensures financial institutions authenticate and verify their customers and members regularly. The three main components of KYC include a customer identification program, customer due diligence, and ongoing monitoring of a customer's account once it is established. For the purposes of this research, Javelin Strategy & Research analysts developed three weighted determinants that correspond across these components: Capabilities, Functionality, and Use Cases. Although Javelin analysts identified numerous vendors in the KYC space, this report reviews and ranks 16 of the vendors that cater to the U.S. market, particularly financial institutions. (Please refer to the report methodology for more information on inclusion and exclusion criteria.)

Key questions discussed in this report:

• What technologies and features are available and considered critical for KYC vendors?
• What gaps in service must be filled to narrow the gap between the KYC Best in Class and Leaders and the rest of the market?
• How can KYC vendors better assist financial institutions with steady new-account growth and existing account monitoring while also ensuring that they remain compliant with Bank Secrecy Act (BSA) and USA PATRIOT Act regulations?

Companies mentioned:

Alloy, AU10TIX, ComplyAdvantage, Equifax Identity & Fraud Services, Experian, FIS, GBG, Intellicheck Inc., KYC-Chain, LexisNexis Risk Solutions, Mitek, Ondato, Plaid, SEON, Thales, Trulioo