Claire FountainOne of the most important things on your mind when you own a business is knowing your customers.
Especially for financial institutions, verifying the identity and legitimacy of clients and companies is key for preventing fraud or scams that could happen otherwise.
KYC, or “Know Your Customer,” software is an easy way to ensure that the clients, customers, and businesses that you work with are who they say they are.
We did some digging to find the best KYC software for your business.
Our Favorite KYC Software
- AI or Not– Best overall
- Persona– Best for education
- Veriff– Best international coverage
- Salv– Best AML tool
- Plaid– Best for small businesses
We offer this website completely free to our visitors. To help pay the bills, we’ll often (but not always) set up affiliate relationships with the top providers after selecting our favorites. However, we do our best not to let this impact our choices. There are plenty of high-paying companies we’ve turned down because we didn’t like their product.
An added benefit of our relationships is that we always try to negotiate exclusive discounts for our visitors.
Best KYC Software & Solutions Comparison
Software | Best for | My rating (out of 5) | Price |
|---|---|---|---|
| AI or Not | Best overall | $5 base, custom enterprise pricing for more KYC features | |
| Persona | Best for education | Custom pricing from $250 per month | |
| Veriff | Best international coverage | Self-serve from $0.80/verification, custom pricing for enterprise plans | |
| Salv | Best AML tool | Custom pricing | |
| Plaid | Best for small businesses | Custom pricing (free trial) |
1. AI or Not
Our top pick for KYC software is AI or Not.
Interestingly enough, this is because AI or Not uses AI and machine learning to identify fake customer profiles. Machine learning eliminates the possibility of human error in identifying and verifying customer identity, which is key when it comes to making sure who you’re dealing with is who they say they are.
It has plenty of helpful features to do this, including real-time document verification, watchlist screening, and ongoing monitoring.
They’re also one of our favorite AI image detection tools.
Pros
- High Accuracy: They use advanced AI and machine learning algorithms to verify customer identities accurately, reducing the chances of errors.
- Efficiency: This automates the KYC process, speeding up customer onboarding and cutting down on the time and resources manual verification would require.
- Scalability: Can handle large volumes of customer verifications simultaneously, which is great for businesses with rapidly growing customer bases.
- Compliance: AI or Not stays up-to-date with regulatory requirements, keeping businesses compliant with changing KYC and AML laws.
- Seamless Integration: AI or Not integrates easily with CRM platforms and compliance tools, allowing for smooth implementation.
Cons
- Potential for False Positives: While AI or Not is highly accurate, it could flag some legitimate customers as suspicious.
- Dependence on Data Quality: The effectiveness of AI or Not depends on the quality and accuracy of the data. Poor data input or outdated information can lead to incorrect verifications and compliance issues.
- Lack of Human Oversight: While automation is great, the reduced human oversight in the process could lead to missed nuances in some complex cases.
2. Persona
Persona offers great KYC software and services, with special features tailored to making verification easier for education companies (some of their biggest clients include Udemy and Coursera).
They offer customizable solutions that fit within industry-specific regulations for businesses across many different industries. Persona also comes with integrations, making it easy to fit their KYC into your current business processes.
Pros
- Highly Customizable Workflows: Businesses can create tailored workflows for identity verification based on industry-specific needs.
- Multiple Ways for Customer Support: Identity verification available across web, mobile, and in-app.
- Risk-Based Decisions: Dynamic risk assessments adjust the verification processes based on user behavior and risk profiles, streamlining the process for low-risk users.
- Comprehensive Data Sources: Uses multiple data sources for identity verification, including government databases and credit bureaus.
- User-Centric Design: Easy user experience with an intuitive, user-friendly interface that streamlines the verification process.
Cons
- Customization Too Complicated for Small Teams: Smaller businesses and teams without technical expertise might find the level of customization overwhelming.
- Limited AML Capabilities: Persona is focused on KYC and identity verification, so its anti-money laundering (AML) features may not be as robust as those of dedicated AML solutions.
- Price Point: Since it is an advanced system, Persona could be too pricey for small businesses with tight budgets.
3. Veriff
With access to an industry-leading 11,500 government-issued documents, Veriff can check identities across 230 countries with an up to 98% accuracy rate. It does this by harnessing the power of AI and the accuracy of using human oversight in the process as well. This two-step approach ensures no fraud slips through the cracks.
Pros
- Global Coverage: Supports identity verification for users from over 230 countries, making it great for businesses with a global customer base.
- User-Friendly Experience: Smooth and intuitive user experience, reducing friction during the verification process and improving customer satisfaction.
- Multilingual Support: Beneficial for businesses operating across languages.
- Compliance Across Multiple Jurisdictions: Keeps businesses compliant with regional regulations like GDPR in Europe and other international standards.
- Real-Time Verification: Veriff's real-time verification allows businesses to quickly onboard users without long delays, improving operational efficiency and customer onboarding times.
Cons
- Limited Customization: Veriff's features could be considered less customizable compared to other KYC solutions.
- Connectivity Dependence: Veriff’s real-time verification relies on a stable internet connection, so a shaky connection could impact the speed or accuracy of the verification process.
- Cost for Small Businesses: It may be cost-prohibitive for smaller businesses or startups that don’t have big verification volumes.
4. Salv
Salv is our favorite ALM KYC combo for folks who need anti-money laundering features in addition to KYC software features. Whether you run a fintech company, a bank, or a cryptocurrency business, you can benefit from Salv’s all-in-one solutions to keep your business practices safe and secure.
Their flexible rule-based system and real-time risk-scoring features allow for a more customizable platform than many on this list.
Pros
- Real-Time Risk Scoring: Real-time risk scoring allows businesses to instantly assess the risk level of transactions and customers, improving speed and accuracy.
- Flexible Rule-Based System: Businesses can create custom rules for detecting suspicious activities, making Salv adaptable to specific regulatory requirements and business needs.
- Collaborative Crime-Fighting Network: Unique collaborative network allows financial institutions to share insights on suspicious activities, strengthening overall AML defenses across the industry.
- Efficient Transaction Monitoring: Continuous monitoring of large volumes of transactions ensures businesses can quickly spot patterns that could indicate money laundering or fraud.
- Rapid Deployment: Quick and seamless integration enables businesses to implement AML solutions with minimal disruption to existing systems.
Cons
- Less Focus on KYC: Salv excels in AML and transaction monitoring, but its KYC capabilities are not as comprehensive as other solutions focused solely on identity verification.
- Learning Curve for Customization: Flexibility of Salv’s system could require some technical knowledge.
- Higher Costs for Advanced Features: Advanced AML features and collaborative network come at a premium, potentially making it less affordable for smaller businesses or startups looking for basic compliance solutions.
5. Plaid
Best suited for small businesses, Plaid offers scalable, customizable pricing for budgets of every size. It simplifies the process of connecting customers to secure payment and bank accounts while verifying their identity and information.
The easy-to-use API allows it to seamlessly integrate into small businesses’ other software and it offers an easy platform for both consumers and businesses. No need for advanced developer skills here!
Pros
- Seamless Bank Account Integration: Strong integration with banks allows small businesses to easily verify customer account information.
- Real-Time Data Access: Real-time access is available for customer financial data, making identity verification faster and more accurate.
- Trusted Financial Network: Connection with thousands of financial institutions offers wide coverage of customer verification data and ensures compatibility across banking platforms.
- Developer-Friendly API: Intuitive and well-documented API makes it easy for small businesses to integrate Plaid into their apps or services with little technical expertise.
- High Security Standards: Security is prioritized by using advanced encryption and being compliant with industry regulations to keep customer data safe.
Cons
- Limited Focus on Identity Documents: Plaid’s verification is more focused on financial data than other KYCs and may not be as comprehensive for verifying identity documents like passports or driver's licenses.
- Regional Limitations: Primarily for customers in the US and a few other countries, making it less than ideal for businesses with a global customer base.
- Dependency on Customer Bank Access: Since Plaid relies on access to users' bank accounts for verification, it can be difficult for customers without online banking or those hesitant to link their accounts.
What Is KYC Software?
KYC, or “Know Your Customer” software is a tool used by businesses to verify the identity of the customers, clients, and businesses that they work with.
It does this in a variety of ways, usually by drawing upon data from official documents, using AI to identify and verify information, and drawing upon data from financial institutions and banks, depending on the specific software.
It’s especially important for financial institutions and businesses heavily dependent on customers being who they say they are.
Features of KYC Software
KYC software comes with a few key features, including:
Identity Verification
Automatically verifies customer identities through government-issued ID documents like passports, driver's licenses, and more.
Document Verification
Authenticates and verifies the validity of certain documents like bank statements, credit reports, utility bills, and more.
Biometric Authentication
Uses things like fingerprinting and facial recognition software to provide advanced authentication for customer identification.
Continual Monitoring
Most KYCs offer ongoing monitoring, flagging transactions and customers that display patterns that are often linked to fraudulent activity.
Why Is KYC Important?
KYC is important because verifying the identity and validity of documents of your clients or business partners is key in avoiding illegal practices like laundering and fraud.
Conducting these investigations and verifications of the identities of the people you work with protects your company from potential liabilities and litigation and keeps your practices up-to-code with applicable regulations in your industry.
How to Choose the Right KYC Software
To choose the right KYC software, you first need to look at what the industry-relevant regulations and requirements for businesses in your industry. For instance, if you have a global fintech company, you’ll need a KYC software that has access to international documents and can possibly support multiple languages.
Next, think about your budget and how much money you can spend on KYC software.
Lastly, consider how easy the KYC is to use and what integrations it comes with, as this is the key to making your business practices work together.
Frequently Asked Questions
What is KYC software?
KYC, or “Know Your Customer” software, is a tool used by businesses to verify the identity of the customers, clients, and businesses that they work with.
What are the three 3 components of KYC?
The 3 components of KYC are customer identification, customer due diligence, and ongoing monitoring.
What technology is used in KYC?
Many technologies can be used in KYC software, including AI, optical character recognition, data analytics, and blockchain technology.
What is a KYC engine?
A KYC engine is a software tool that creates questionnaires and other methods to verify the identity of customers for a business.
Rashida Beal
