Multimodal KYC with Behavioral Biometrics: How Finance and Insurance Companies “Get to Know” Their Customers in 2025

Know Your Customer (KYC) and Anti-Money Laundering (AML) processes can be a time consuming and costly part of running a fintech, finance, or insurance company. KYC and AML involve collecting and verifying personal and financial information, including names, addresses, government identification, and employment documents, in order to prevent criminal activity. 

KYC and AML is also a crucial part of remaining compliant, and mistakes can be costly. The repercussions of not having an adequate KYC program can range from fines to license suspensions, sanctions, or even criminal charges. And regulators take KYC seriously: fines for KYC offenses have risen by over 417% in 2025. 

What are Multimodal Biometrics (and How Can You Use Them for KYC?)

‍Biometric recognition is identification via a unique, measurable physical or behavioural characteristic such as voice, fingerprints, facial structure, or iris pattern. Multimodal biometrics combine multiple forms of biometric recognition, such as multiple fingerprints, fingerprint plus facial recognition, or another combination of markers. The result is a form of authentication and access control that cannot be easily faked.

By combining various, tough-to-spoof forms of identity verification, you can create a broad, multi-jurisdictional compliance program for KYC. Different countries are developing different KYC regulations, and multimodal biometrics can be one way of remaining compliant with them across the board. 

The end goal of KYC is always the same: make sure the customer is who they say they are, and prevent them from conducting illegal activities. Biometrics give finance and insurance industry companies some protection against criminal organizations who are always trying to find loopholes in the system – and good compliance measures help your organization stay proactive and on track. 

In the insurance industry, this could look like a single KYC “score” for an individual, comprised of:

• Facial recognition
• Voiceprints
• Fingerprints 
• Mouse movement
• Geolocation 

These biometrics can help make sure the person you are talking to is who they say they are, as well as preventing the more sophisticated “deepfake as a service” scams, synthetic identity fraud, or bots. It can also cut down on fraud, since the person’s same KYC “footprint” can then be used when they are making a claim. The same is true for banks and other financial institutions, not only registering an individual into their system, but operating on a transaction to transaction basis. 

There is a growing market for these new methods of KYC, especially in highly secure or sensitive industries like healthcare, finance, government, and claims. The fingerprint identification market alone is expected to hit 94.49 billion in 2025 from the US alone. And with 80% of hacking related data breaches due to compromised credentials, the use of biometrics is expected to be very welcome. 

Multimodal Biometrics Help Streamline Compliance

With multiple layers of security and protection, biometrics offer security that’s hard to fake! While some regions restrict the use of biometrics, having multiple biometric options can help your organization stay consistent across markets, providing multiple layers of proof – without halting onboarding.