21 May 2021

KYC-Chain: Use Cases and Comparisons

The compliance technology ecosystem can be a complex and confusing place. As digital payments and identity verification needs have grown, so too have the number and types of providers offering innovative solutions for running automated Know Your Customer (KYC) checks. 

And with the continued expansion of the broader crypto, DeFi and fintech spaces - and the regulatory requirements being implemented by authorities globally - the proliferation of KYC tech options to choose from will continue growing too. 

With that in mind, we decided that it would be beneficial for our readers to have a clear presentation of what makes KYC-Chain such a powerful tool for a wide range of businesses and sectors seeking to optimize and strengthen their KYC/AML protocols. 

KYC-Chain is proud to exist in an exciting ecosystem of innovative companies, many of which are creating impressive and useful novel technologies to meet the compliance challenges of our times. 

The technological advances of the last several years mean that most of the KYC technology projects out there offer powerful solutions that tend, for the most part, to be on a relatively equal footing when it comes to processing speeds, analytical accuracy and jurisdictional coverage. 

That being said, we are also keenly aware that KYC-Chain stands out in several important ways. We’ve spent a lot of time developing and expanding certain unique capabilities that elevate our technology’s utility - which businesses will be very excited to know are an option for their KYC needs. 

So, what really makes KYC-Chain so special? Let’s take a look. 

End-to-End Workflow Solution

KYC-Chain offers a fully-customizable end-to-end workflow solution for businesses to carry out KYC checks, allowing them to transform decision making and streamline their risk management. 

What do we mean by end-to-end solution? 

To start, we offer a wide range of compliance tools, including ID and Accredited Investor verifications, global regulatory coverage, wallet screening and digital tampering detection. 

Our workflow tool enables you to customize the entire onboarding process. You can choose the documentation requirements, frontend branding and UX, configure monitoring frequency and risk levels and have a single view throughout the customer lifetime. This flexibility can be of great benefit to a wide range of companies seeking to implement KYC on their platforms. 

Consider the following example:

We’ll use two different types of companies in order to illustrate KYC-Chain’s wide range of utilities and use cases. The first is a fintech company providing banking and other trading services, which we’ll call… Fintech Inc

Fintech Inc’s main priority is to implement KYC checks that will ensure they remain compliant with as many global regulatory requirements as possible, such as the FATF Travel Rule, as well as regional regulatory regimes such as the EU’s Fifth Anti-Money Laundering Directive (5AMLD) and the US Banking Secrecy Act (BSA). 

Fintech Inc provides exchange services to users in countries ranging from the US to Latin America, Asia, Africa and Europe. 

The company serves a large number of customers that includes individuals, companies and institutions, and doesn’t expect to scale too extensively in the foreseeable future. 

Some of their customers exist in jurisdictions that have not yet implemented FATF Recommendations in their national law codes, though adoption in many of them appears imminent. Added to that, a large segment of their customers exist in FATF signatory states. 

The next company we’ll consider is a new crypto exchange, which we’ll call... Crypto Exchange. Crypto Exchange’s priority is to ensure that their onboarding process is as easy and friction-less as possible for their customers, who are mostly individuals who value privacy but understand that a certain level of KYC will be necessary if they are going to be able to cash out their crypto earnings into fiat. 

Maintaining compliance with Crypto Exchange’s home jurisdiction, where most of their customers are based, is very important to the company, but so is the cost efficiency of their KYC tool. 

Crypto Exchange also wants to be able to scale up or down if needed, and to have the option of expanding to new target markets in foreign countries if the possibility presents itself. 

The company has big plans for growth, so they need a tool that can accompany them in their expansion into new markets and the growth of their client base, wherever that may be. 

Where Fintech Inc and Crypto Exchange converge is their need for quick implementation of their KYC tool, a flexible payment plan, and the potential to provide services to customers in a wide range of jurisdictions across the world.  

Both companies are looking for a holistic and integrated solution to view all of their potential KYC applications, to be able to customize their user flow and to be able to configure and easily manage the documents, questions and forms that need to be collected from users. 

They also want to perform automated KYC/AML checks with a complete audit trail, manage account/client files from within the workflow tool and configure risk levels according to their specific markets. 

Ideally, the KYC tool they implement will also act as a case management utility for their compliance team to easily respond to alerts and quickly focus on any raised issues or red flags. 

Enter the KYC technology providers: KYC-Chain, Company B and Company C. 

Crypto Exchange A first turns to Company B, which offers targeted KYC checks that have near-total global coverage, AML screening against a long list of trusted risk data aggregators, and can complete thousands of checks in a day. 

However, Crypto Exchange needs a solution that also has a front-end platform for onboarding. They have limited resources and want to set up their KYC process as soon as possible, offering their new clients a tried-and-tested onboarding UI that can optimize their conversions. 

Company B doesn’t offer a front-end solution, but Company C does. However, the drawback with Company C is that it costs a sizable amount of money in order to set up their system. 

KYC-Chain offers a front-end platform that our clients can integrate on their own website or app, which is fully customizable according to the above-mentioned criteria, and can be used to carry out all the required KYC checks through to check out. And this is possible through a scalable payment system that doesn’t break the bank for startups with small customer bases. 

For startups like Crypto Exchange, outsourcing their frontend to a provider like KYC-Chain can also save them valuable resources in terms of both development time and the money that would be required to do it themselves. 

So, for companies seeking to adapt and augment their KYC features as required and as they grow - and expand or respond to new regulations - KYC-Chain is an ideal solution.

Now let’s get to the next capability that provides KYC-Chain with unparalleled power and flexibility:

Multi-Service Integrated Solution

Fintech Inc has their own unique use cases and requirements for their KYC tool. Global coverage is very important, as is full compliance with predominant regulatory regimes such as the FATF, 5AMLD, Banking Secrecy Act (BSA), etc. 

However, Fintech Inc’s client base includes individuals, small, medium and large-sized companies, as well as institutions and investors in a wide range of different jurisdictions. 

Fintech Inc isn’t too concerned with having a front-end solution as they plan to integrate the KYC solution’s API with their own front-end. 

While Company B and Company C offer API integration, the time it takes can range from a week to a month. 

Added to that, both companies cannot offer screening checks for Accredited Investors outside the US, which is going to be a problem for Fintech Inc., which has a sizable market in Europe and Asia. 

In this scenario, KYC-Chain will be able to tick all the boxes, providing fast API integration, global verification for accredited investors, and the ability to quickly and dynamically onboard individual, corporate or other institutional clients

For Crypto Exchange, KYC-Chain’s unique wallet screening tool will also allow them to buttress their AML credentials and respond to growing concerns among global regulators regarding sanctioned or unverified wallet custodians. 

Flexibility is a cornerstone of our offering, and we are constantly searching for new ways to adapt to the changing needs and demands of a fast-evolving financial and regulatory ecosystem.

In the next few weeks, we’ll be delving deeper into the key features that make KYC-Chain such a powerful and adaptable compliance technology suited for a truly wide range of companies and use cases. 

Interested in discovering more about how KYC-Chain can be your partner on the road to simple, total compliance? Get in touch and we’ll be happy to discuss it and/or arrange a demo


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