Understanding The Growth Of KYC, AML, And PEP Markets — And Why It Matters
In today’s modern financial institutions, KYC (Know-Your-Customer), AML (Anti Money Laundering) and monitoring of Politically Exposed Persons (PEPs) are more important than ever.
With more large-scale transactions being conducted digitally, using online banking and cryptocurrencies, it’s never been more important for financial institutions and banks to adopt KYC, AML, and PEP software to protect their reputations, and ensure that they are dealing with legitimate customers, rather than fraudsters.
In this article, we’ll take a look at a few factors influencing the growth of KYC, AML, and PEP markets, and discuss the numbers behind this growth.
The KYC, AML, And PEP Market Will Grow To $12 Billion By 2022
Currently, the market for software and services related to KYC, AML, and PEP is around $5.6 billion. However, this is forecasted to grow to at least $12 billion by the year 2022, according to a study performed by OWI Labs. This means that the market for these services will grow by nearly $2 billion per year for the next three years, eventually more than doubling in size.
The Factors Behind The Growth Of KYC, AML, And PEP
There are a number of factors related to the growth of these markets. First, more banks are beginning to do business mostly online, meaning that KYC and AML are required when setting up an account to ensure that it’s not used for fraud.
In addition, the growth of the FinTech (Financial Technology) industry, which is focused almost exclusively on using apps and websites for traditional bank-like functions such as lending and taking cash deposits, is also making KYC and AML more important.
Finally, the recent growth of bitcoin and other cryptocurrencies, as well as the exchanges that allow them to be traded and sold, are going to drive growth. Until now, crypto exchanges have avoided KYC, AML and PEP regulations, for the most part. But, in the future, they will likely be forced to adhere to these regulations — particularly if crypto exchanges and companies want to work with large financial institutions.
KYC, AML, And PEP Are Important Now — Get Ahead Of The Curve
Whether you work in crypto or in a FinTech startup, getting ahead of the competition and ensuring you comply to KYC, AML, and PEP regulations is essential. The future will likely bring even more regulations — and by getting ahead of the curve, you can ensure that your company remains in compliance at all times.
We are offering 1 month of Free KYC for all companies, read more here: https://verifer.io/kyc_1month_campaign .
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