What is KYC (know your customer)?
KYC, short for know your customer, is the process a bank uses to verify who a customer really is and assess the risk they pose, before opening an account and on an ongoing basis. It is a legal requirement aimed at stopping fraud and money laundering.
In practice it means checking identity documents, confirming a real person is behind the application, and screening against risk lists. Done badly it is slow and frustrating. Done well it is nearly invisible.
The modern challenge is balancing the two: meeting strict rules without turning sign up into an obstacle course that drives customers away.
Sthenos builds compliant financial software, including a digital relationship manager app for a banking institution.
Related terms: digital onboarding, open banking, core banking system.
Is KYC a one time check?
No. Banks verify identity at sign up and keep monitoring the relationship over time, which is sometimes called ongoing due diligence.
