It’s clear that open APIs are now part of the IT ecosystem in fintech, it allows agility and scalability. One area where APIs are already having a substantial influence is in Anti-Money Laundering (AML) and also Know Your Customer (KYC) regulation. A legal requirement in most of the countries in the world. The regulator requires financial institutions to make sure they have correctly validated their customers to limit the AML/KYC risks.

In general, APIs are the solution for a fast, simple and cost-effective way to deliver new services that meet consumer demands and expectations of today and tomorrow. Already, there more than 2,000 APIs in the banking ecosystem and this is just the beginning with blockchain technology, big data and artificial intelligence (AI).

Facilitate regulatory compliance

While interconnection is one reason for the development of Open APIs, another crucial driver is the increase of regulatory compliance. New regulations all over the world are regularly changing the financial landscape, FIs need to satisfy their legal responsibilities. In Europe, for instance, PSD2 offers now plenty of services that can best be implemented by the use of APIs.

Using API for KYC verification, identity verification and document verification.

Here is why infrastructures should use APIs when considering AML/KYC implementation:

Provides a cost-effective solution

Speeds implementation time as they can reuse existing infrastructure

Better and faster consumer onboarding experience

Incorporates flawlessly with various other applications

Provides far better reporting and information flow

No more problem of record-keeping

Reduce time to market for example for the new identity verification requirements

That’s why at ClearDil we created an API to solve complex compliance challenges. A robust and startup friendly identification verification platform for KYC/AML compliance requirements to enable businesses to scale their company faster, smoother, and successfully.

Built for scalability and adaptability, the ClearDil API for KYC verification is a RESTful (Representational State Transfer) API, ensuring that it is ready to satisfy incremental future requirements without impacting existing system.

Onboard customers faster and easier with a meaningful API documentation, vetted and trusted data sources, through an easy RESTful API integration. ClearDil API is here to help transform new ideas into businesses and helps startups with their identity verification and document verification solution. Learn more about ClearDil’s API for KYC verification.