Perpetual KYC in Fintechs: Is It Worth It?
For fintechs, if customer behavior is constantly changing, so should risk profiles adapt through Ongoing Customer Due Diligence. Perpetual KYC is a way of keeping up with new threats as well as new regulations.
As OCDD procedures work as compliance obligations in which companies must monitor accounts while also assessing the risks they might pose for financial crimes such as money laundering.
What Is Perpetual KYC in Fintechs?
Perpetual Know Your Customer (KYC), in essence, pushes fintechs to systematically keep reviewing accounts and transactions, but also risks.
Accordingly, real time analytical capabilities are key as Ongoing Customer Due Diligence requires fintechs to be prepared to constantly monitor account status as a way of tackling any emerging risk.