A collaboration between PYMNTS Intelligence and Trulioo, “Built or Bought: How KYC/KYB Ownership Shapes Risk, Cost and Growth” examines how companies’ choices about identity verification ownership shape fraud risk, operating costs and growth. The report is based on a survey of 350 global firms conducted from Aug. 1-Sept. 10, 2025, and explores how firms manage know your customer and know your business operations as automated threats put more pressure on digital identity systems.
The findings show that control and protection aren’t always the same thing. Firms that run identity verification fully in-house often have more visibility into threats, but they don’t always stop those threats from becoming losses. Among firms using internal teams, 78% that detected know your agent (KYA) threats reported losses. By comparison, just 44% of firms using external providers reported losses after detecting those threats.
Cost is another major difference. Internal teams spend more per identity check than firms using outside providers. The report finds that internal teams spend an average of $26 per consumer KYC review and $51 per business KYB review, compared to $11 and $20, respectively, for external teams. Yet that higher spending doesn’t always produce better outcomes. Internal teams also report higher false positives, rising transaction declines and more instances in which untrustworthy suppliers pass verification.
The report also makes clear that no ownership model is perfect. External teams perform better on loss prevention and customer friction, but they’re more likely to say their identity systems limit expansion into new markets. Hybrid models may offer a middle ground, combining internal expertise with outside capabilities, but they still require careful oversight and clear performance benchmarks.
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Built or Bought: How KYC/KYB Ownership Shapes Risk, Cost and Growth
In “Built or Bought: How KYC/KYB Ownership Shapes Risk, Cost and Growth,” learn how:
Identity verification ownership can influence whether a detected threat becomes a financial loss.
Higher spending on in-house KYC and KYB may still leave firms exposed to fraud, false positives and customer friction.
Companies can weigh the tradeoffs between internal control, outside expertise, cost efficiency and market expansion.
About the Report
“Built or Bought: How KYC/KYB Ownership Shapes Risk, Cost and Growth,” a collaboration between PYMNTS Intelligence and Trulioo, is based on a survey of 350 companies. The survey was conducted from Aug. 1-Sept.10, 2025. The study examines the effectiveness of digital identity systems in preventing fraud and supporting business growth.
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