Choosing a KYC solution means choosing the tool that will carry a legal obligation: identifying and verifying every customer before entering into a relationship, then monitoring them over time. On paper, the offers all look alike — "verification in seconds", "AI", "guaranteed compliance". In practice, they differ a lot. Here are the criteria that really matter when comparing KYC software, and the questions to ask before signing.

KYC solution, software or platform: what are we talking about?

The three terms are often used interchangeably, but they do not cover the same scope.

• An identity verification tool checks an ID document and a selfie. It is a building block, not a complete KYC solution.
• KYC software covers the full check of an individual customer: identity, document authenticity, sanctions and PEP screening, and evidence retention.
• A KYC platform goes further: it orchestrates the entire onboarding journey — collection, checks, risk scoring, analyst review, decision, monitoring — for individuals and businesses alike (KYB).

So the question is not "which tool best verifies an ID card", but "which part of my compliance process do I want to automate". If the answer is "the whole file", an identity building block will not be enough.

What regulation requires from your solution

KYC stems from anti-money laundering and counter-terrorist financing (AML-CFT) rules — in France, Articles L. 561-1 et seq. of the Monetary and Financial Code. From July 10, 2027, the EU AMLR regulation harmonizes these rules across the Union. In practice, your solution must allow you to:

• identify the customer and collect the required data;
• verify that data against reliable, independent documents or sources;
• assess the risk and apply the right level of due diligence — simplified, standard or enhanced;
• screen the customer against sanctions lists and politically exposed persons (PEP) lists;
• monitor the relationship over time and keep the file up to date;
• retain documents and a record of every check so you can present them to the supervisor.

Software that only covers the first line leaves you handling the other five manually — which usually means spreadsheets and emails.

7 criteria to compare KYC solutions

1. Depth of the identity check

Checking that a document "looks" genuine is not enough. Ask how the solution checks the MRZ, security features, font and field consistency, and how it detects a photo of a screen or a printed document. On the biometric side, liveness detection is essential to rule out photos, masks and replayed videos. Learn more: identity verification and liveness.

2. Document fraud detection

A KYC file does not only contain an ID: proof of address, bank details, tax notices, payslips. These are often the documents that get forged. A good solution analyzes every document in the file, not just the ID. See our guide on document fraud detection.

3. Built-in AML screening

Sanctions, asset freezes, PEPs, adverse media: screening must be part of the journey, not run separately. Look closely at false positive management: a tool that generates hundreds of unqualified alerts moves the work around instead of reducing it.

4. Risk scoring and explainability

The solution must compute a risk level from your own criteria — country, activity, product, channel, check results — not from an imposed grid. And the score must be explainable: during an audit, "the tool said high risk" is not a justification. More on our risk engine.

5. The customer journey

The best check is useless if the customer drops out at step 3. Make sure the journey works on mobile, can carry your branding, does not ask again for information already known, and lets customers complete their file in several sessions. A white-label client portal avoids back-and-forth by email.

6. Ongoing monitoring

KYC does not stop at account opening. An ID expires, a customer becomes a PEP, a company changes directors. Ask how the solution detects these events and follows up with the customer. See ongoing monitoring.

7. Integration, security and hosting

Documented API, CRM connectors, webhooks, test environment: integration drives time to production. On the data side, ID documents are personal data under the GDPR: require hosting in the European Union, a clear data processing agreement and a configurable retention policy.

Common pitfalls

• Comparing only the price per check. The real cost includes the time your analysts spend on rejected, incomplete or false-positive files.
• Forgetting business customers. If you also serve companies, a solution limited to individual KYC will force you to handle KYB elsewhere.
• Confusing "acceptance rate" with quality. A tool that approves everything has an excellent conversion rate… until the first audit.
• Neglecting the audit trail. Every decision must be traceable: who checked what, when, and on what basis.

Questions to ask during a demo

• What happens when a document is rejected: is the customer guided to try again?
• Can I configure my own risk and due diligence rules without development?
• How are screening false positives handled?
• Are KYC and KYB in the same tool, with the same file?
• Where is the data hosted, and how long is it kept?
• Can I export a complete file for a supervisory review?

Why a platform rather than a building block

Most compliance teams are not short of verification tools: they lack a place where the file is complete. A KYC platform brings collection, checks, screening, scoring and decision together in a single file, accessible to the analyst and ready for audit.

That is Dataleon's approach: an onboarding portal for your customers, automated checks on identity, documents and AML lists, a configurable risk score, and an AI agent that prepares file reviews. Individuals and businesses, in the same tool.

FAQ

What is the difference between a KYC solution and a KYB solution?

KYC verifies individuals. KYB verifies companies: legal existence, directors, beneficial owners. A business customer requires both: KYB for the company, KYC for its representatives and beneficial owners.

Is a KYC solution enough to be compliant?

No. The tool performs the checks, but responsibility stays with the obliged entity: risk classification, internal procedures, decisions and suspicious activity reports remain its own.

How long does it take to deploy KYC software?

It mainly depends on integration. A hosted white-label journey can be up and running in a few days; a full API integration into your systems takes longer.

Request a demo to see the Dataleon platform on your own use cases.