Beyond KYC Utilities

Despite leading global bodies recognizing that financial exclusion can undermine efforts to fight money laundering and terrorism financing, the high cost of complying with their requirements paradoxically makes it harder for financial services providers (FSPs) to reach underserved and unserved populations. Fortunately, new technologies, business models and ways of collaborating are emerging in the public and private sectors that could put us on the path to resolving this paradox.

This blog series investigates and highlights developments that could make customer due diligence (CDD) more efficient and effective, while potentially lowering compliance costs for providers. The series uses “KYC utilities” as a starting point, but reaches beyond this model to identify promising applications — and their implications — in the brave new world of collaborative customer due diligence.

Masai mobile banking
09 August 2018
2 comments
If financial services providers are going to work together to improve customer due diligence, more flexibility will be required to exchange customers’ information responsibly.
Biometric fingerprint scanner in Madagascar
26 July 2018
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Biometrics are likely the future of identification and identity verification, but it's important to understand their strengths and limitations to ensure they advance financial inclusion.
Woman uses her fingerprint to take an instant loan in Madagascar
12 June 2018
Biometric technologies are facilitating the rise of collaborative customer due diligence. It is crucial to understand all aspects of biometric solutions – security, cost, convenience, inclusiveness and accuracy – and how prioritizing one may come with trade-offs to others.
A bakery owner uses Aadhaar Pay.
01 March 2018
From KYC utilities to blockchain apps and new ways to collaborate on customer due diligence, recent developments are chipping away at a major barrier to financial inclusion: the high cost of meeting anti-money laundering and terrorism financing requirements.