Identifying and Verifying Customers: When are KYC Requirements Likely to Become Constraints on Financial Inclusion?

Alan Gelb () and Diego Castrillon ()
Additional contact information
Alan Gelb: Center for Global Development
Diego Castrillon: Center for Global Development

No 522, Working Papers from Center for Global Development

Abstract: Onerous KYC documentation requirements are widely recognized as a potential constraint to full financial inclusion. However, it is sometimes difficult to judge the extent to which this constraint is a serious or binding one, relative to the many other factors that can limit access to finance or demand for financial services. The paper considers this question, distinguishing between different types of documentation and different financial market segments according to their KYC requirements. Using data from several sources it then looks at cross-country patterns which provide some suggestive evidence on the conditions under which particular requirements are more or less likely to pose serious constraints. It concludes with policy suggestions, including on the use of technology to help ease the burden of documentary requirements while still maintaining financial integrity.

Keywords: documentation; identification; financial inclusion; KYC (search for similar items in EconPapers)
JEL-codes: G21 G23 G28 L51 O16 O31 O50 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2019-12-17
New Economics Papers: this item is included in nep-fle
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.cgdev.org/publication/identifying-and- ... y-become-constraints

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cgd:wpaper:522

Access Statistics for this paper

More papers in Working Papers from Center for Global Development Contact information at EDIRC.
Bibliographic data for series maintained by Publications Manager ().