Know Your Customer (KYC) Technology

• FinTech companies with more than 50 employees have KYC teams made up of 7-10 employees. For those with less than 50 companies, KYC teams are typically made up of either 1-3 or 4-6 employees.
• Approximately 30% of FinTech companies have KYC teams made up of 1-3 employees, 30% have KYC teams with 4-6 employees, and 40% have between 7-10 employees on their KYC operations teams.
• Growth in the KYC team division for FinTech companies is largely driven by:
• Number of existing customers: 60% 
• Number of new customers: 80% 
• Percentage of customers that have to be manually reviewed: 50% 
• Number of geographies that the company operates within: 10% 
• Number of regulatory jurisdictions the company operates within: 10% 
• Company direction/products offered: 10% 
• The most commonly sought after features for KYC technology in the FinTech industry include:
• Integrated third party vendor solutions: 90% 
• Integrated sanctions/PEP screening: 80% 
• Reports for auditors: 80% 
• Open API for workflow management: 70% 
• Integrated risk and fraud: 70% 

Anti-Money Laundering (AML) FinTech Software in Banking

• One of the major issues with AML technology in banking is the reporting threshold of $10,000. This value makes it difficult to identify illegal profits, sometimes resulting in false alerts.
•  Blockchain technology is suspected to be a possible solution to confirming, tracing, and verifying payments in the banking industry. This goes hand-in-hand with machine learning FinTech, which would help AML software to learn and predict possible instances of fraud.
• AML and KYC technology are expected to grow together to ensure that banks are not accepting customers that would be more likely to commit money-laundering or fraudulent bank activities.

FinTech in the Banking Industry

• Banks report that some of the largest threats from FinTech include but are not limited to:
• Loss of market share: ~68% 
• Pressure on margins: ~67% 
• Information security/privacy threat: ~57% 
• Increase of customer churn: ~50% 
• Other: ~4% 
• FinTech is largely expected by experts to improve the "back-end of financial services" in the banking industry, specifically by validating customers, products, and feedback.