Importance and Benefits of KYC

To be mandated by the law, the Know Your Client (KYC) process also helps the institutions in several ways:

• Helps lenders perform risk assessment by identifying the previous financial history and assets owned
• Limits fraud that result mainly due to hiding of identity
• Prevents money laundering and other anti-social activities
• Brings stability and investment to the country, as it makes the financial framework more trustworthy and less risky
• Decreased uncertainty allows institutions to lend more to customers and increase their profits