Leveraging biometrics to transform KYC

Matthew Ferreira
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Matthew Ferreira: Centre for Financial Regulation and Inclusion (Cenfri)

Journal of Digital Banking, 2019, vol. 4, issue 3, 222-233

Abstract: Know your customer (KYC) has long been perceived as a compliance burden for banks. It is a costly process that is equally frustrating for consumers, and the penalties for non-compliance can be severe. Regulation, however, is changing to enable banks to innovate in the way they undertake KYC. This paper discusses how the technology of biometrics can be utilised in KYC to reduce costs, drive business development and improve the experience for consumers while effectively mitigating money laundering risk. It further shows that KYC regulation should not be perceived as a compliance burden but rather as guiding the implementation of effective identity management solutions that form part of a bank’s overall business strategy and processes.

Keywords: biometrics; KYC; compliance; digital; onboarding (search for similar items in EconPapers)
JEL-codes: E5 G2 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:aza:jdb000:y:2019:v:4:i:3:p:222-233

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