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What is KYC software?
In order for this process to be carried out effectively, organizations must utilize effective software to ensure their KYC solutions are optimized. This will ensure heightened security measures are taken, which also help them adhere to global regulations. The ultimate aim of this software is to enhance the operational efficiency of KYC Ops and prevent financial crime such as money laundering from taking place.
List of KYC software & tools
What is Know your customer (KYC)?
Know your customer (KYC) is an intrinsic part of any financial institution's approach to regulatory compliance. Serving as one of the best ways to prevent fraud and money laundering, KYC systems help:
Verify customer identifies
Assess risk factors associated with specific accounts
Establish trust and transparency with clients
Mitigate the risks of a financial crime taking place
In order for this process to be carried out effectively and efficiently, organizations need to rely on software tools. These are designed with the KYC process in mind, and ensure each stage of the wider process is managed efficiently and without error.
The 9 best KYC software & tools
Owing to how important the KYC process is for thousands of financial organizations, many different software options are now available. Here are nine of the best on the market as we head into 2025:
Disclaimer: Everything you’ll read in this article was gathered from online research, including user reviews. Note that we have not manually tested every tool that we are referencing. This guide was last updated in January 2025. If any information is factually incorrect and needs to be updated, please get in touch here.
Quantexa
Core focus: Improving the KYC data foundation and perpetually monitoring customer
Quantexa’s KYC Foundation Solution adds critical value to a financial institution’s KYC process across the customer journey through the creation of a connected data foundation. Underpinned by the Decision Intelligence Platform, all available internal and external data is joined to improve data quality and create a context-driven, holistic view of customers, their behaviors and complex relationships.
This enriched view facilitates improved efficiencies, effectiveness and experiences, essential for driving positive downstream effects business-wide. It brings data automation to the onboarding phase, reduces customer friction, provides a firm-wide holistic view of a customer, powers more accurate risk assessments and ensures customers are exited properly.
By building a necessary, trusted data foundation at the start, Quantexa facilitates an informed, realistic understanding of customers that advances short- and long-term operations, maximizes competitive advantages and enables confident decision-making across the KYC life cycle.
Quantexa provide an advanced interface which helps financial organizations to optimize each aspect of KYC:
CDD
EDD
CRR
Offboarding
Remediation
Using this tool will heighten accuracy and efficiency, increase the effectiveness of your risk management and onboarding processes, and enhance the experience for your customers by reducing any potential stages of friction.
Trulioo
Core focus: Document verification
Ideal for complying with customer verification practices, Trulioo’s transformative software is capable of scanning more than 14,000 different types of documents, drawing on a gigantic list of five billion identities, spread across databases and lists from 195 countries.
All Trulioo products can be integrated with the use of API, and are a fantastic way to meet KYC requirements, while also running checks for AML threats against high-risk watchlists. It’s possible to start with a free trial of their system, before moving on to either their Growth Plan (for KYC and AML checks), or Enterprise Plan (which also includes business verification).
Their detailed fraud intelligence software makes it possible to immediately, and safely, onboard customers with a host of different digital IDs. This high assurance level not only provides peace of mind, but also financial security for your customers.
Moodys
Core focus: External data & screening
Moody’s KYC solutions provide robust risk management and compliance tools, leveraging comprehensive data and analytics to support client onboarding, monitoring, and due diligence. Their platform offers advanced screening capabilities, including access to global sanctions lists, PEPs, and adverse media.
Strengths include AI-powered risk assessments, real-time alerts, and seamless integration with existing systems. Moody's solutions enhance operational efficiency, reduce manual work, and improve decision-making, making them a strong fit in the KYC ecosystem for firms seeking reliable, data-driven compliance tools for regulatory adherence and risk mitigation.
Onfido
Core focus: Liveness detection
In an age where it’s possible to mimic others with the use of AI, liveness detection has become a strong asset in the fight against financial crime. Onfido’s software incorporates liveness detection technology, helping verify the authenticity of a person’s identity through selfies or videos. This feature helps ensure that individuals are who they claim to be during the verification process.
Their AI system can do this, as well as verify biometrics, before automatically accepting or rejecting any applications. In cases where the tool thinks there might be an area of doubt, these profiles will be tagged to undergo a manual review.
LSEG Risk Intelligence
Core focus: Screening and Due Diligence
LSEG (London Stock Exchange Group) offers comprehensive risk intelligence solutions that enhance KYC processes by providing real-time data, advanced analytics, and a vast database for identifying risks associated with clients, transactions, and entities. Their solutions integrate seamlessly with existing KYC workflows, offering tools for screening, monitoring, and due diligence. Strengths include high-quality data, AI-driven insights, and regulatory compliance support. LSEG's tools help firms improve accuracy, reduce fraud, and ensure compliance, making them a valuable addition to the KYC software ecosystem.
Ondato
Core focus: User-friendly identity verification
Taking the ability to verify customers one step further, Ondato’s software implements Near Field Communication (NFC) technology to make remote identification quick and easy for everyone. This innovative tech allows users to validate their identity with the use of machine-to-machine virtual signals.
As well as that, other modern forms of verification methods are also all available during the verification process. E-signatures, biometrics, and video verification are all possible through Ondato’s KYC tool. This reduces time constraints for financial organizations, while conforming to safety standards.
What’s more, these institutions can also white label this software, meaning that customers are able to be presented with a customized and branded interface when they are prompted to verify themselves.
Sumsub
Core focus: Data management
This KYC management software utilizes a number of features which help to manage and store information about customers for long periods. This makes it easier to maintain and update accurate records for heightened security.
This comprehensive document coverage is paired with a number of other features, all of which cement Sumsub as one of the best KYC software solutions on the market today. Those include things like face matching, agent video calls, NFC verification, and known face search.
Jumio
Core focus: Versatility
Jumio’s KYC software offers all the bells and whistles of other leading names, but comes with the added bonus of allowing high levels of customization for those using the tool. It’s possible to set long term goals using the software, while also pivoting in real-time to help make decisions which will increase security measures for high-risk accounts.
A customizable risk-scoring system is also present, which allows you to decide how finitely you want to monitor each and every account on the platform. When you do want to hone in more closely on a flagged issue, the software will present you with a detailed report. This will highlight the overall risk score of an account (by your pre-selected parameters), show what checks were carried out, and provide a detailed description of any issues that were flagged.
On your end, the tool is easy to use, with a detailed dashboard making it quick and simple to assess an account and its history. This is all while providing a low-friction onboarding process for customers.
ComplyAdvantage
Core focus: Customer screening
ComplyAdvantage ensures that their software is user-friendly and scalable – going as far as to offer a free version of their tool to fintech startups. Their transparent pricing plan further serves to support this, with an aim to simplify the compliance process.
Customer screening, transaction monitoring, and media checks are all included within the software’s capabilities, which are made accessible thanks to easy API integration. AI tools are also utilized to ensure the automation of many time-consuming tasks associated with these customers due diligence processes.
The tool also allows you to create custom profiles based on risk analysis. It can also trigger the immediate flagging and monitoring of the accounts of politically exposed persons (PEPs), allowing you to place heightened focus on them.
Transform KYC processes with Quantexa
What is the KYC process?
Let’s start by getting a better understanding of what the wider KYC process looks like. It is a regulatory process that banks are legally required to follow to be able to properly identify a customer and assess their risk of money laundering, including a number of key elements which help to create a clear and accurate picture of customers in a timely and efficient manner.
Here’s an overview of what the KYC process looks like for most financial institutions:
- Customer onboarding
The journey begins with a client providing the required information to validate their identity and populate the customer profile.. This will be information such as their name, address, date of birth, and copies of identification documents. Information is also gathered to assess any potential red flags or risks to watch for with customer behavior. That means things like their profession, source of income, and the nature of transactions they might make. For business clients this extends to location, the type of business, the nature of products they need, and their client base.
- Customer Due Diligence
At this point, Customer Due Diligence (CDD) involves assessing the customer’s risk profile, including their financial activities, geographic location, and potential exposure to financial crime. For individuals, this means identity verification and name screening. For businesses, beneficial ownership verification is required. This prevents any hidden ownership factors, greatly reducing the risk of money laundering or fraud.
- Ongoing monitoring
Accounts will be periodically reviewed and transactions monitored. Risk levels will be continuously assessed , with different accounts assigned to varying risk threshold levels. Any suspicious activity during this time might see an account bumped into a higher level for review.
- Enhanced due diligence
For accounts with a higher risk factor – such as those more likely to be politically exposed, or where suspicious activity has taken place in the past – heightened due diligence processes are executed. This will see numerical figures assigned to determine the risk of money laundering and other financial crimes, as well as the need to gather further information and evidence from the account holder in order to generate a clearer picture.
- Risk management
Any accounts which have been flagged as a potential risk need to be separately categorized as such. Any which fall into this bracket need to be paired with detailed documentation.
- Exit process
If an account is found to be compromised, or it’s deemed that a high level of risk is involved with it, the final step involved is the freezing or closing of this account to mitigate future or further loss. This needs to be done carefully, with no personal information shared and detailed documents stored at the point of the customer’s exit.
Top features in KYC software
In order to make a well-rounded decision about the best type of KYC software to employ in your institution, it’s important to know what kind of features are a common, and important, aspect to look for. Most robust KYC software tools which incorporate the following elements:
Compliance checks
Anti-money laundering (AML) laws and regulations exist to ensure that organizations are following the right procedures to ensure their financial institution is not complicit in money laundering and terrorist financing. KYC software makes it possible to keep KYC data up to date and continually assess customer risk, which ensures that these protocols are being correctly adhered to.
Identity verification
Perhaps the most important aspect of KYC is accurately verifying the identity of your customer or client. Software tools do this by comparing personal details with a series of trusted databases, as well as by carrying out biometric scans or using facial recognition.
Risk assessments
Understanding what potential risk a customer poses helps to mitigate the chances of a financial crime before it can occur. Software should be able to do this automatically by assessing their customer details, geographical location, products used and transactional behavior.
Document scanning and processing
Taking human errors and time constraints out of the equation, KYC tools make it possible to automate the reading and processing of identification documents, such as passports and driver's licenses for individuals, articles of incorporation, annual reports and ISDA's for corporations.. This heightens efficiency and accuracy.
Watchlist screenings and sanction lists
Global watchlists, databases, and sanction lists exist to highlight individuals who’ve been at the center of financial crime or fraudulent activity in the past. Software makes it possible to instantly identify if a customer is on any of these registries.
Audit reporting
Software tools enhance the audit process thanks to the detailed records that they’re able to store. This extends to pre-existing checks and verifications, as well as any past activity which should be noted on an account.
Customer due diligence
The due diligence process is key for accounts which have raised suspicions. Software enables organizations to dig deeper into them, checking information on backgrounds and past activities in more detail.
Workflow automation
Some tasks within the KYC framework can be repetitive. Automation of the workflow helps carry out tasks for low-risk customers without the need for human oversight, while also prioritizing accounts which will need further due diligence and assessment.
Self-service portals make it easier than ever for customers to engage with the wider KYC process. Tasks such as uploading documents and signing forms are electronically streamlined thanks to innovative KYC tools.
Integration with third-party apps
The use of third-party apps and data is a common way to make a customer profile more accurate and robust. Integration with these systems through the checking of credit scores, confirming addresses, or the verification of someone’s identity heightens overall accuracy.
How to choose the best KYC software
Picking the right KYC software can be a challenge. There are many viable solutions available, which can make choosing the best for your organization tough.
Here are some key features to keep in mind when screening different options:
Location
Sanction lists, databases, and PEPs aren’t always international. It’s important that any software used covers the specific location that you’re wanting to monitor. A lot of tools will work efficiently beyond international borders, but it’s a necessity to know this before committing to one piece of software.
Integration and customization
The ideal software will be able to integrate with your existing infrastructure, having little to no impact when introduced. It’s also important for it to be able to integrate data and information from third-party platforms.
Scalability
If an organization is looking to grow in the future, the software needs to be able to scale alongside this projected growth. Choosing a tool with the capability to work with enterprise institutions is a must for anyone looking to expand in the future.
Security
All safety and security factors need to be as optimized and enhanced as possible. That means a robust system which has been trialed and tested on various occasions to guarantee that the privacy of all users is maintained at all times.
Customer support
Your chosen vendor also needs to have a responsive support system in place. As well as this, having a series of training resources to help staff fully understand the capabilities of the tool can also help to enhance its usability and effectiveness.
Price
While not something which should completely decide your final choice, it’s important to factor in the cost of any tool which you opt for. This needs to provide decent value-for-money, while also staying within a budget which your organization feels comfortable with.
What technologies are used in KYC software?
Biometric identity verification
Modern technology now makes it possible to identify individuals using personal features, rather than traditional factors like PINs and passwords. This means things like facial, vocal, and fingerprint recognition, and even extends to factors like the shape and size of your iris. Liveness detection now exists to ensure the person being presented is real, and not a deep-fake.
Artificial Intelligence (AI) and Machine Learning (ML)
The use of automated systems like AI and ML has been transformative in the world of KYC. They make it possible to quickly and accurately assess risk factors which would have previously taken human employees much longer to analyze. This includes factors like data analysis and anomaly identification.
Document verification systems
Optical Character Recognition (OCR) and NFC are now able to instantly extract key information from IDs and record them. This is useful when comparing to previously uploaded information, while also employing technologies which quickly identify if any documents have been tampered with. These systems can also verify security features such as watermarks, stamps, and holograms.
Digital footprint analysis
For someone to be a low risk factor, they need to actually exist. Fake accounts, which use artificial identities in an attempt to launder money or commit other forms of financial crime, can be quickly identified with the use of digital footprint analysis. This system assesses a user’s behavior and online presence (such as on social media) to determine if they really exist.
KYC software FAQs
Who has to comply with KYC?
In the past, KYC rules were only used to police financial institutions. Modern standards expect a number of financial and non-financial organizations to follow them. This will vary in accordance with the country you operate in, where the rules and regulations will be different on a nation-by-nation basis. In the US, firms must comply with the Bank Secrecy Act and the USA Patriot Act.
Common examples of groups who have to follow these rules are:
Financial institutions
Banks
Fintech companies
Credit unions
Gambling entities and casinos
Wallet providers and cryptocurrency exchanges
Wealth management firms and broker-dealers
Private lenders and lending platforms
These are not the only organizations that will need to comply with KYC regulations. Almost any enterprise that interacts with money in some way will be asked to comply, in order to prevent fraud or financial crime.
Why do you need to invest in KYC?
The cost of internal KYC has increased over the last 5-10 years with many firms hiring more staff to address the work manually. Combined with the drive for improved customer experience, being able to improve KYC through software and automation will allow banks to reduce costs, scale better over time and deliver a better customer experience with less friction.es.
Investing in KYC is therefore a must for any enterprise where money is involved. Protecting your assets, as well as the integrity and trust in your company, is something which pays for itself in time.
What is the difference between AML and KYC software?
KYC can be thought of as just one branch of the AML umbrella. The wider system works to align people, processes, and technology in a way which helps prevent the illicit moving of money. KYC is the component which allows the organizations to capture information about a customer to properly verify them, understand how they intend to use the products and identify the risk the customer poses in relation to money laundering and terrorist financing to support a risk based approach. By solving this piece of the puzzle, they will be able to greatly reduce the chances of money laundering, as well as a host of other financial crimes.
Useful links
We’ve discussed a lot regarding KYC software in this guide. However, there could be more you want to know about the impact it can have on your KYC program. Browse the following articles for further reading.