In today’s fast-moving digital world, knowing who you’re dealing with online isn’t just important—it’s everything. Whether you’re a bank, a gig platform, or an e-commerce store, verifying your customers’ identities keeps your business safe and trusted. This process, called "Know Your Customer" or KYC, is the backbone of fraud prevention and compliance. But let’s be real: it’s not always easy. Fraudsters are getting smarter, regulations are tightening, and your customers expect everything to be quick and painless.
We get it. At Bureau, we’ve seen firsthand how tough it can be to keep up with Fraud & Regulatory Demands, and still give your users a smooth experience. That’s why we’ve built solutions that work for everyone—whether you’re a regulated entity like a bank or a non-regulated business like a dating app or a quick commerce.
In this blog, we’ll walk you through what is KYC, what is the landscape, the challenges, and how our end-to-end compliance suite can help you stay ahead in 2025.
What is KYC (Know Your Customer)?
KYC, or "Know Your Customer," is all about confirming that your customers are who they claim to be. Something like showing your ID at a store to prove you’re old enough to buy tobacco or alcohol—except it’s digital and way more critical.
The goal? Stop fraud and build trust. It’s a must for industries where identity matters—like banking, insurance, and even online marketplaces.
Governments see it as a big deal too. In India, the Reserve Bank of India (RBI) mandates strict KYC rules for banks to keep the financial system secure. According to their guidelines,
"KYC helps institutions identify their customers and monitor their transactions effectively."
.png)
This isn’t optional—it’s the law.
In India in fact, the Reserve Bank of India has amended their master directions for KYC and AMl protocols by adding stricter measures to defend against fraud. Some of these measures include a tougher stance of conducting through EDD, or ensuring banks are taking certain measures to ensure mule accounts are caught at their roots.
KYC has evolved a lot. Back in the day, it meant digging through paper documents like passports or utility bills. It was slow and a hassle, and scores of individuals, teams, and departments were involved. Now, the world is online. With tools like AI and machine learning, we can verify identities in seconds, not days. But as fraud gets trickier, our defenses have to keep up.
Let’s dive a bit deeper into how these processes show up for regulated or unregulated entities.
The KYC processes For Regulated Entities
If you’re a regulated entity—like a bank or financial institution—KYC follows a strict, government-mandated path.
There are two kinds of Documents that are used, in KYC:
- POI (Proof of Identity)
- POA (Proof of Address)
Here is a handy Document verification guide for you:
And here is the process that entities follow for KYC verification
Step 1: A customer gives their name, address, and birth date.
Step 2: They submit Officially Valid Documents (OVDs) like your personal ID card or driver’s license.
These are checked against official records to ensure their legitimacy.
Step 3: Assess their risk—things like where they live or what they do might raise red flags. (Are they part of a political party? Do they have influential connections? These checks for a part of the AML/CFT protocols)
Step 4: Implement enhanced due diligence and monitor transactions to spot anything suspicious.
Small example: Take opening a bank account in India. You’d show your PAN card or Aadhaar, and the bank verifies it through government systems. In India, here is a snapshot of the Officially Valid Documents (OVDs) required for KYC.
It’s thorough, but it can be slow—and we know how frustrating that is for you and your customers.
The KYC processes For Non-Regulated Entities
If you’re a non-regulated business—like a ride-hailing app, e-commerce platform, or dating app—there is a need for KYC too, but it’s less rigid.
A user signs up with their name and email, maybe uploads a photo ID or takes a selfie. You might run a quick background check to ensure they’re not a known fraudster. For example, a delivery app might ask drivers for their driving license and confirm it’s real.
The difference? Regulated entities face heavy government oversight, while non-regulated ones prioritize speed and user experience. But both need trust—and that’s where we step in.
Challenges with Current KYC Processes
A. Regulated Entities
Even with strict rules, regulated entities like banks have a tough time. Checking documents manually is slow—sometimes taking days—and we know how that annoys your customers. It’s also costly to pay staff to handle it. Worse, clever fraudsters slip through with fake IDs or stolen info.
Looking ahead, new threats are looming. Deepfakes—fake videos that look real—can fool selfie checks. AI-powered fraud is spiking, making it harder to trust what you see. We understand the pressure you’re under to stay compliant while battling these evolving risks.
B. Non-Regulated Entities
Non-regulated businesses face their own struggles. Long sign-up processes drive users away—studies show up to 60% abandon if it’s too complicated. Fraud’s a huge problem here too, with fake accounts causing havoc. Synthetic identities, where fraudsters blend real and fake details, are tough to catch.
The future’s bringing more risks. As AI improves, scams get slicker. We know how frustrating it is to lose users to clunky onboarding or fraudsters exploiting your system. You need to stay sharp—or risk losing money and trust.
Recent news reports highlight these concerns.For example, age gating is slowly becoming one of the most concerning threads for eCommerce platforms. Outdated age verification allowed underage users to bypass safeguards, resulting in legal and reputational challenges for major platforms. The Indian government has emphasized that lapses in age gating are emerging as a significant vulnerability—one among many—that digital businesses must address to keep pace with evolving cyber threats.
Addressing Current KYC Challenges with Bureau
To tackle today’s KYC woes, Automation is your best bet. AI can check IDs and faces in seconds, slashing wait times and costs. For banks, this means happier customers and staying compliant. For gig platforms, it means more users stick around. Better accuracy also catches fakes that humans might miss.
We offer a range of compliance APIs you can use individually or as part of our full compliance suite. Whether you need one tool or the whole package, we’ve got your back.
For tomorrow’s threats, you need cutting-edge defenses. Liveness detection ensures a person’s really there—not just a photo or video. Behavioral biometrics track how someone types or moves, spotting bots. Device checks flag tampered phones or apps. Whether you’re a bank or an e-commerce site, these tools keep fraudsters out.
Our solutions evolve with the threats, so you can focus on growing your business, not fighting fraud.
Our Advanced Compliance+ Suite for BFSI (Regulated Entities)
If you’re a regulated entity like a bank, we’ve built a powerful set of tools to meet your every KYC need. Our compliance APIs can be used individually or as part of our full compliance+ suite, giving you the flexibility to pick what works for you. We know the pressure you face to stay compliant while keeping customers happy, and our tools make verification fast and secure.
Here’s what’s in our suite:
- Selfie + Liveness Check: Confirms the user’s real and present.
- Face De-Dupe & Face Match: Stops duplicate accounts and matches faces to IDs.
- Document Classifier & Tampering Detection: Catches fake or altered docs.
- Document OCR: Reads PAN, Aadhaar, driver’s licenses, and more.
- PAN & Aadhaar Verification: Checks official records via Digilocker.
- PAN-Aadhaar Linkage & Aadhaar Masking: Meets compliance rules.
- Voter ID, DL, Passport, & RC Verification: Covers all major IDs.
- EPFO Suite & UAN Check: Verifies employment history.
- Bank Account Verification & AML/PEP Checks: Flags financial risks.
- E-sign, Credit Pre-Fill, & FASTag Verification: Streamlines processes.
Whether you need one API, which slots right into your systems, boosting security without slowing you down or the full suite, we keep you compliant and secure.
Our Non-Regulated Entities Solutions: TurboPass & FaceGuardAI
For non-regulated businesses, our compliance suite offers two game-changers: TurboPass & FaceGuardAI. Use them individually or as part of our full suite—we’ve got you covered. We know how frustrating it is to lose users to slow onboarding, and we’re here to make sign-ups fast and fraud-free.
A. TurboPass: No-Document Onboarding
TurboPass makes signing up a breeze. With just a phone number, name, and selfie, it verifies users in under 10 seconds. Our AI-powered solution checks the face and screens against fraud lists.
Gig workers onboard fast, logistics drivers stay legit, and e-commerce vendors avoid fakes. A delivery app cut drop-offs by 50%, saving money and keeping users happy.
B. FaceGuardAI: Battling AI-Powered Fraud
FaceGuardAI takes on the latest fraud tricks. Its liveness detection stops deepfakes in their tracks. Device intelligence catches tampered phones, and behavioral biometrics spot odd patterns. It also blocks duplicate faces across accounts. A dating app saw scams drop 30%, while a gaming site cut fakes by 60%. Tough on fraud, easy on real users.
The Future Landscape: Onboarding & Continuous Monitoring
By 2025, Onboarding will be about speed and smarts. Regulated entities will need tighter checks to meet laws like India’s DPDP Act.
Non-regulated businesses will want fast sign-ups without skimping on safety. Deepfakes and sneaky attacks will push everyone to monitor users continuously—not just at the start, but all the time.
We know balancing compliance, security, and user experience is a juggling act. That’s why our compliance suites are designed to make it easier. Whether you’re onboarding users or monitoring their activity, we’ve got solutions that grow with you.
KYC is at a crossroads. Old methods can’t handle new fraud or stricter rules. Regulated entities deal with slow processes and deepfake threats. Non-regulated businesses lose users to clunky onboarding and fakes. We know how hard it is to stay ahead, but with our solutions—like individual compliance APIs or our full compliance suites:
Compliance+, TurboPass & FaceGuardAI —you don’t have to do it alone, we are with you.
Ready to see how we can help? Please have a quick chat with our team from here. Let’s transform your onboarding and keep your business safe in 2025.
