A Jupiter payments study found that financial businesses are far from being alone in needing to ‘know their customer’.
Non-financial businesses worldwide have dedicated $30.8bn of spending in 2024 on installing KYC or KYB systems for fraud and revenue protection, with the forecast expected to grow rapidly to $52.9bn by 2029.
The projection for global KYC spend is 140% over the next five years, rising from $9.2 billion in 2024. Non-financial entities such as eCommerce, gaming, insurance and real-estate companies, where KYC is also extremely important, want to step up their protections of data and service assets they know can become targeted by fraudsters. These sectors are subject to KYC and AML laws because of the various risks associated with financial transactions and customer interactions.
The study shows a strong correlation between regulations being enforced and more sectors relying on KYC processes. For example, Ofcom has recently announced final enforcement action for companies that do not comply with KYC processes to protect child online safety.
Dynamic regulations create opportunities, as the title reads on a second Jupiter report. Deepfake regulations aim to fight fraud and identity theft caused by the misuse of AI. Mirroring Ofcom’s action based on upholding the UK’s Online Safety Act, Texas, US, introduced a new age verification law called Texas House Bill 1181 in September 2023, which focuses on protecting minors from adult content.
These solutions focus on “verifying age using government issued identification or commercial reasonable methods, such as relying on public or private transactional data, which the bill established as necessary for compliant age verification”. – KYC/KYB systems: Dynamic regulations creating opportunities
Financial institutions in the UAE and India are required to perform stringent KYC checks to combat money laundering and terrorist financing.
With companies’ reliance on KYC systems brought about by current or looming regulation, these established vendors have emerged based on capacity and capability assessments.
- AU10TIX
- ComplyAdvantage
- Data Zoo
- Encompass
- Entrust
- Experian
- Fenergo
- Jumio
- Know Your Customer
- LexisNexis Risk Solutions
- Minerva
- Moody’s
- Persona
- Sardine
- Shufti Pro
- Socure
- Sumsub
- Trulioo
- Veriff
