The development of the financial sector’s trading landscape has resulted in the establishment of numerous financial markets that offer great potential for generating wealth. Nevertheless, this growth has spawned various fraudulent entities seeking to defraud traders. KYC service providers have introduced and implemented KYC technology to counter illicit activities within trading and investment.

What is a KYC Provider?

KYC (Know Your Clients) service providers assist financial institutions and businesses in verifying their clients’ identities. KYC services are crucial in preventing financial crimes, money laundering, and fraud. 

These providers use multiple methods, such as biometric verification, database checks, and document verification, to ensure that clients are authentic and who they claim to be.

The Top 5 KYC Providers Your Business Needs to Consider

Numerous KYC providers are available in the market. However, the following five examples stand out due to their exceptional service and unique features that set them apart from other solutions.

• Shufti Pro

Shufti Pro is an AI-driven system for verifying identities that offers KYC and AML screening solutions. It possesses an extensive database that includes profiles from national and international law enforcement agencies and financial regulators. By conducting AML-based data checks, Shufti Pro safeguards companies against economic risks and penalties.

• Trulioo

Trulioo, established in 2011 and headquartered in Toronto, provides businesses with tools to authenticate user identities and ensure data accuracy. Their services also enable users to verify documents submitted. With access to 450 diverse data sources, including credit bureaus, cell phone carriers, and government agency APIs, Trulioo effectively verifies the identity of remote customers.

• Ondato

Ondato has developed a tried and tested KYC technology that is a reliable solution for financial institutions such as Forex brokerages. It automates the registration process for individual and corporate customers and the collection and monitoring of KYC data (ODD). This automation reduces the need for compliance resources and simplifies data management.

• Fractal ID

Fractal, a fintech developer based in Germany, has introduced Fractal ID, a platform designed to verify identities for KYC/AML purposes. This service offers rapid and accurate global verification, boasting a conversion rate of over 40%, which exceeds industry standards. 

The verification process involves utilising OCR and facial recognition to authenticate national IDs and passports. Fractal ID adheres to bank-level KYC/AML regulatory standards and complies with GDPR.

• Sumsub

Sumsub is a comprehensive KYC/KYB/AML solution that assists Forex and crypto companies in authenticating users and verifying documents. By utilising machine learning and AI, Sumsub compares documents and determines the presence of a live person. It supports a wide range of document types, totalling 6,500, from over 220 countries.

Verdict

Verifying a user’s identity is crucial, whether they are involved in financial market trading or economic transactions with individuals or legal entities. The KYC process offers an affordable solution to combat money laundering, making it a valuable asset for financial sector businesses.