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Definition
KYC, or Know Your Customer, is the process organizations use to verify the identity of customers before allowing them to access financial services, regulated products, or sensitive platforms. It typically involves collecting and validating personal information and identity documents.

Why it matters
KYC helps prevent fraud, money laundering, identity theft, and other financial crimes by ensuring businesses know who they are transacting with. It is a regulatory requirement in many industries, particularly banking, fintech, and payments.

Example use case
A fintech app requires a new user to upload a government issued ID and selfie before opening an account, completing the KYC verification process.