Which companies use KYC?
Banks and covered financial institutions use KYC; marketplaces, gaming, crypto, and other fraud-exposed businesses may verify identity for legal or risk reasons.
Direct answer
Who usually buys KYC software
Banks, payment companies, lenders, broker-dealers, money-service businesses, crypto businesses, insurers, gaming operators, and some professional firms may have customer-due-diligence duties under the rules that govern them. Marketplaces, mobility platforms, employers, age-restricted services, and online communities may also verify identity to control fraud, access, or trust even when a bank-style KYC rule does not apply.
The company category is not enough to decide whether KYC is mandatory. The answer turns on the legal entity, license, product, customer, transaction, delivery channel, and jurisdiction.
Regulated KYC use and voluntary identity checks differ
- A regulated firm must map its actual CDD trigger and evidence duties.
- A non-regulated product may verify identity for fraud, age, safety, account recovery, or platform policy.
- Calling every identity check ‘KYC’ can obscure which legal and operational controls are actually present.
Do not infer KYC scope from an industry label
Two companies described as fintechs can have different obligations because one holds a regulated license and the other only supplies software. Start with the entity and activity, then read the sector rule. Vendor marketing categories are not a legal scope test.
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Related KYC answers and working guides
Evidence
Sources and scope
International AML/CFT standards, including customer due diligence and beneficial ownership.
Official description of the U.S. CDD Rule and the covered financial institutions.