KYB Trends 2025: What’s Next for Business Verification

KYB is no longer optional. It’s essential. And if you have already read our blog, you know that. Did you know that, globally, organizations spend an average of $5.47 million annually on compliance. So, last year we explored KYB’s growing impact with our KYB trends 2024, but 2025 demands a fresh perspective…and we know a thing or two about it.

Drawing from our experience at Silt, we’re looking ahead: RegTech + Compliance Automation, Voice Recognition and ESG integration are reshaping the game. In this article, we break down the trends driving KYB forward, so you’re ready to lead in a world where trust defines success.

KYB Trends 2025: key changes you need to know

Last year, we talked about KYB’s explosive growth, and we discussed how regulations around UBOs in Europe were tightening, fraud risks were growing, and small businesses were demanding faster, more digital solutions. 

All essential topics, yep, but 2025 needs a sharper focus.

And let’s face it: you don’t need another article waxing poetic about AI and biometrics. Everyone’s talking about that. Instead, we’re here to get real about how technology and regulations are creating a new KYB landscape. 

With compliance soaring to $30.9 million for financial services, the pressure is on to stay ahead. So, we want to share with you new trends that aren’t buzzwords. They’re shifts we’re seeing daily in our work at Silt.

Here’s what’s shaping new KYB trends in 2025.

1. RegTech and Compliance Automation

RegTech is transforming how businesses handle compliance, particularly in processes like KYC (Know Your Customer) and AML (Anti-Money Laundering). By automating complex tasks, these solutions not only improve efficiency but also significantly reduce human errors. We’ve seen firsthand how adopting RegTech can turn manual, error-prone processes into streamlined, high-precision systems.

The global RegTech market is booming. According to Fortune Business Insights, it’s expected to grow from $15.8 billion in 2024 to $85.92 billion by 2032, with a compound annual growth rate (CAGR) of 23.6% over this period. This rapid growth underscores the increasing demand for solutions that can keep pace with an ever-evolving regulatory environment.

One of RegTech’s standout benefits is real-time monitoring. Institutions can instantly detect and respond to suspicious activities, strengthening their risk management strategies. Additionally, by automating tasks like identity verification and transaction monitoring, companies can reallocate valuable resources to areas requiring human oversight, optimizing overall productivity.

2. Perpetual KYB (pKYB)

Perpetual Know Your Business (pKYB) is revolutionizing compliance by shifting from periodic reviews to continuous, real-time monitoring. Unlike traditional KYB, which assesses business entities at set intervals, pKYB ensures that any change in a customer’s risk profile is detected and addressed immediately. This proactive approach not only keeps compliance up-to-date but also significantly reduces exposure to financial crimes.

We’ve observed that implementing pKYB enhances operational efficiency by automating the monitoring process, allowing compliance teams to focus on complex cases that require human judgment. This continuous vigilance leads to improved data quality and a more streamlined remediation process, as issues are identified and resolved in real time.

The benefits of pKYB are substantial. According to a report by Moody’s Analytics, perpetual KYC practices maintain accurate counterparty data through near real-time updates, eliminating the need for periodic reviews. This continuous monitoring allows for more agile responses to changing risk factors, enabling confident decision-making regarding business relationships.

3. Decentralized identity and privacy

In 2025, decentralized identity and privacy are set to revolutionize KYB processes. Traditional centralized systems often expose sensitive business information to potential breaches and misuse. 

Decentralized Identity (DID) frameworks empower businesses to control their own data, enhancing privacy and security (yep, read our article if you don’t know what we are talking about). 

By utilizing technologies like Zero-Knowledge Proofs (ZKPs) and blockchain, DIDs enable secure, self-sovereign, and private credential verifications, ensuring that only authorized participants engage in transactions while maintaining compliance with Know Your Business (KYB) standards (bear with us, ‘cause we are going to give you more info about standards in just more paragraphs).

Moreover, the implementation of decentralized identity solutions can streamline KYB processes by reducing redundancy and eliminating the need for businesses to undergo verification procedures multiple times with different institutions. This not only enhances efficiency but also fortifies data security, as sensitive information is not stored in a single centralized repository vulnerable to attacks.

4. Voice recognition and NLP in KYB (an obvious KYB trend, but still)

Yep, we recognize that the adoption of voice recognition and NLP in KYB might seem like an obvious progression, but the substantial growth and proven effectiveness of these technologies in 2024 make them indispensable tools for modern compliance strategies.

In 2024, the speech and voice recognition market surged from $13.99 billion to $16.7 billion, marking a compound annual growth rate (CAGR) of 19.4%. Now bat at all, right?

This rapid expansion underscores the increasing integration of these technologies across various sectors, including Know Your Business (KYB) processes.

✅​ Incorporating voice recognition and NLP into KYB procedures enhances both security and user experience.
✅​ Voice biometrics enable precise identity verification, while NLP facilitates automated, nuanced risk assessments by analyzing verbal cues during interactions.
✅​ This combination allows for more efficient and accurate customer digital onboarding and continuous monitoring.

5. ESG integration into KYB

Nope. Integrating Environmental, Social, and Governance (ESG) factors into KYB processes is no longer a luxury. It is so important. With over 2,500 ESG policies identified globally, according to a 2023 report by Carrots & Sticks, businesses are under increasing pressure to align with sustainable practices.

We’ve seen, with our clients, how incorporating ESG metrics into KYB not only helps in managing risks but also promotes responsible business conduct. By evaluating a company’s environmental impact, social responsibilities, and governance structures during the KYB process, financial institutions can make more informed decisions that align with global sustainability goals.

Moreover, consumers are voting with their wallets. A survey by PwC found that over 76% of consumers would discontinue their relationship with companies that treat the environment, employees, or the community poorly. This consumer behavior underscores the importance of ESG considerations in building and maintaining trust.

Integrating ESG into KYB isn’t just about compliance (at this point, it’s not, trust us). It’s about staying ahead in a market that increasingly values sustainability.

6. Global standards: how to integrate them?

Navigating the mess of global KYB standards is no small feat. With each country dancing to its own regulatory tune, businesses face a symphony of compliance challenges. The push for standardized KYB regulations across borders could simplify compliance efforts.

We know well how this patchwork of rules can trip up even the most diligent companies. But here’s the kicker: the future is leaning towards harmonization. The push for standardized KYB regulations across borders could simplify compliance efforts.

So, what’s the game plan? Stay sharp on global standards, (read a lot about that), adapt your KYB frameworks to align with international best practices (would you like to read about it?), and keep your operations nimble. In this ever-evolving landscape, being proactive is freaking essential.

So, what’s next? What did you think about these 2025 KYB trends?

2025 is shaping up to be a year full of innovation and progress in KYB. And we’re just getting started writing about KYB trends.

Wait, that’s more! We’ve just made something happen…so, our team is so excited to announce the launch of our newest product: our brand new CDP. If you’ve ever struggled with automating documents you thought were impossible, we’ve got you covered 🥰​

With 99% accuracy, our advanced technology automates data extraction from even the most complex documents, including IDs, driving licenses, passports, and beyond. This means less time spent managing paperwork and more time focused on what truly matters to your business.

Ready to see our product in action? Book a demo with us and experience how we can transform your document processing, saving you time, cutting costs, and delivering actionable insights.

Let’s make this your most efficient year yet.

See yaaaa!