KYC
KYC, Know Your Customer, is the checks an organisation performs to verify a customer's identity before starting or continuing a business relationship with them.
Traditionally KYC means a customer submits identity documents that a compliance team checks manually, every time they onboard with a new organisation. With verifiable credentials, a customer can reuse an identity check already performed elsewhere, presenting a credential the new organisation can verify instantly instead of repeating the same document checks.
Related terms
Is KYC the same as KYB?
No. KYC checks the identity of an individual, while KYB checks a business as a counterparty, including who owns and represents it. A business relationship often needs both: KYC on the individuals acting on a company's behalf and KYB on the company itself.