Why a Reliable KYC Solution is Crucial for Product Managers

Product development isn’t easy. Product managers need to mediate between business owners, customers, and design teams, while constantly keeping compliance with local regulations in mind (especially if we are talking about fintech and crypto products).

In this article, we explore how reliable KYC solutions can make life easier for product managers, and what to look for when choosing one.

What is a KYC solution?

KYC stands for “Know Your Customer” and refers to the verification procedures businesses must conduct before transacting with a new customer. KYC is especially important for firms that need to comply with anti-money laundering (AML) regulations, such as the banking, fintech, crypto, and real estate industries. 

KYC procedures include collecting and verifying certain information about customers. The minimum data businesses need for this process includes:

• name
• date of birth
• address

The personal data required may vary by country, so always check the AML regulations and guidelines of your jurisdiction.

To verify customer data, businesses need to obtain authentic and valid documentary evidence from the customer. This can be an ID card (or any other valid identity document) or a utility bill (or some other proof of address document like a tax bill, voter roll, or bank statement).

Suggested read: The KYC Onboarding Process: Building AML-compliant Customer Onboarding

How can a KYC solution help product managers?

A proper KYC solution can assist in the product development process in several ways. These include: 

• gaining insight into who customers are, their interests, and how they prefer to interact with the product or service to build a better relationship and personalized user experience
• identifying fraud, such as money laundering, to identify areas of risk and protect the business from fines and create a more secure environment for transactions. 

What should a product manager look for when choosing a KYC solution?

• Customizable verification process. A proper KYC provider should offer various types of verification, depending on customer and product development needs (this includes liveness, ID verification, proof of address, etc.). The provider should also allow different types of checks at different verification levels, which ensures high conversion rates while staying 100% compliant
• Quick and user-friendly verification. Verification is often a long and inconvenient process for clients, and many give up half-way through. Therefore, the right KYC solution should have flawless UX that’s fast and smooth
• A/B testing. The right KYC solution solution should enable experimentation with user flows to see what works best for user segments and regions
• AML compliance. KYC solutions must ensure compliance with both local and global AML regulations across a wide range of jurisdictions
• Global coverage. KYC providers should have the compliance groundwork already laid down in any new market a business seeks to enter
• High pass rates worldwide. No matter which market a business seeks to enter—be it Nigeria or Singapore—the right KYC provider will ensure high pass rates
• International certifications. KYC providers should be tested by independent auditors to make sure they meet international standards
• Professional and responsive customer support. When an issue or question arises, the right KYC provider will offer flawless customer support to resolve any issues quickly
• Legal support. When products are ready for release in a new jurisdiction, a truly proper KYC solution will have a team of  lawyers on hand to  advise on AML regulations and the most suitable verification type.