Blockchain Technology Helps Enable Reusable KYC Solutions
Know-your-customer (KYC) solutions are becoming increasingly important for crypto companies, financial services firms, and institutions.
Grand View Research found that the global KYC software market size was valued at $2.93 billion in 2021. The number is expected to expand at a compound annual growth rate (CAGR) of 20.8% over the next six years.
Grand View Research’s report further noted the growth of the KYC market, which can be attributed to the importance of compliance management and the rising number of identity-related frauds in financial institutions. The rise of deep fakes and artificial intelligence (AI) related scams is also leading to greater KYC adoption.
While KYC is an important requirement, the process is often a burden for both users and businesses.
Riley Hughes, Co-founder and CEO of digital identity startup Trinsic, told Cryptonews that users undergoing KYC typically have to provide a photo of themselves, along with an identification document.
As KYC becomes more common, Hughes pointed out that users typically have to repeat this process multiple times.
“A person will likely have to perform KYC about ten different times across multiple apps and platforms,” said Hughes. “But statistics show that asking users to verify themselves using a photograph of a plastic ID card results in as much as 40% drop-off.”
Vishal Kapoor, Chief Operating Officer of blockchain technology firm Chia Network, further told Cryptonews that KYC is expensive to implement.
A recent article from Betanews mentioned that KYC measures amount to 40% of all anti-money laundering (AML) compliance costs, totaling $5.7 million yearly for banks.
Given these challenges, reusable KYC solutions have started to gain traction.
“Reusable
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