We think the Gartner Market Guide for KYC Platforms for Banking* emphasizes the rapid shift to digital KYC in Banking. Gartner states, “The KYC market growth is driven by increasing regulatory requirements and the need for enhanced risk management. This expansion is accelerated by the rising adoption of digital banking, the increasing sophistication of financial crimes, expectations of better customer experience and the demand for more efficient and effective KYC processes.” 

KYC for Banking market trends     

We believe the KYC market for Banking is based on three key pillars:

●      The move to low-effort customer experience and faster turnaround – to streamline identity verification while creating a smooth onboarding experience for users. 

●      The coexistence of one-stop-shop KYC platforms and best-of-breed solutions – banks choose what suits their needs best, but this dichotomy underlines the importance of orchestration tools to effectively manage diverse KYC processes.

●      The urge for real-time fraud detection – a timely and crucial move to fight organized financial crime and identity fraud, which is rapidly becoming more sophisticated.

Tackling challenges

Apart from the trends, Gartner points out the most common challenges the Banking industry has to find solutions to when building their KYC workflows.

Gartner underlines, “The challenge lies in handling the vast diversity of document formats and languages globally, necessitating continuous updates and training of AI models.” To address this issue, Regula Document Reader SDK employs the most comprehensive identity document template database in the world, which is owned and maintained by Regula. Currently, it contains over 14,800 passports, driver’s licenses, national ID cards, and other IDs from 251 countries and territories. By recognizing every layout, security feature, and possible variation within these documents, Regula’s solution ensures efficient, accurate, and reliable ID verification during onboarding, even when dealing with rare or complex documents.

We feel that another critical challenge is detecting injection attacks, which are more technically complex than common presentation attacks. Presentation attacks involve displaying fake images or videos in front of a device’s camera, while injection attacks insert malicious data directly into the verification process, substituting the camera feed. This makes injection attacks harder to execute but also more difficult to identify. Regula tackles this threat using signal control techniques: by analyzing and validating incoming signals, Regula’s solution ensures that the organization is dealing with authentic data; otherwise, it flags potential fraud for additional verification.

“In today’s fast-evolving banking landscape, regulatory demands and customer expectations require more than just standard KYC processes—they require precision, adaptability, and speed. We believe our recognition in the Gartner Market Guide for KYC Platforms for Banking highlights Regula’s ability to address these challenges head-on. By combining the most comprehensive identity verification with advanced fraud detection, we’re enabling banks to deliver seamless customer experiences while ensuring top-level security and compliance,” says Henry Patishman, Executive VP of Identity Verification Solutions at Regula.

Previously, Regula was repeatedly named a Representative Vendor in the Gartner Market Guide for Identity Verification.

*Gartner, Market Guide for KYC Platforms for Banking, Vatsal Sharma, 10 December 2024.