KYC—or Know Your Customer—is a critical process for all financial companies dealing with international investors, shareholders and customers. Clears is a technology based on the Ethereum blockchain offering a scalable and personalized KYC process. It aims to expedite the acquisition and delivery of required information to companies and regulators around the world, simultaneously improving the user experience by increasing security of sensitive personal data while lowering the cost.
Today, most companies use proprietary and standardized KYC processes, requesting every new customer to submit an ID and a document certifying their current address. Only after a successful customer authentication has occurred are companies allowed to do business with a user. The data being used in a standard KYC process is often extremely fragmented, and there is no guarantee that the user completing the KYC is the legitimate ID holder. Additionally, many KYCs processes are unnecessarily complex in that the amount of documentation needed exceeds legal requirements for a given operation.
Ironically, the same crypto-technology companies at the forefront of blockchain innovation are using archaic and unsecured KYC processes.
The global banking industry combined with the top five Asian markets constitute a 1.5 billion dollar yearly market, according to LexisNexis risk solutions. But the KYC market goes far beyond the banking industry and is so large it’s difficult to estimate the market size using publicly accessible data.
In the immediate future, Clears will focus its efforts of serving rapidly growing ICOs, Fintech and Cryptocurrency marketplaces.
Currently, there are more than a thousand ICOs yearly. Every ICO requires anywhere from 1000 to 50000 KYCs. This tiny fraction of the market represents $50M in potential revenue, a number that is expected to rise exponentially as cryptocurrencies gain mainstream popularity.
There are also more than 10,000 crypto related marketplaces and exchanges on-boarding thousand of new users daily. Each new user requires a KYC.
Clears aims to be the standard KYC in the rapidly growing ICO market, expanding to serve all industries that require identity checks and KYC processing. We are confident that users will specifically request that Clears processes their KYCs due to its convenience and enhanced security.