FROM KYC TO eKYC: HOW BIOMETRICS AND DIGITAL IDENTIFICATION STRENGTHEN FINANCIAL TRANSPARENCY

In the context of the digital transformation of the financial sector, the customer identification system is undergoing fundamental changes. The article is devoted to a comprehensive analysis of the evolution from traditional KYC procedures to modern solutions in the field of electronic identification (eKYC), with an emphasis on the problems and prospects of their implementation in Russia and abroad. Special attention is paid to the technological aspects of eKYC, including biometric verification, the use of artificial intelligence and blockchain solutions. A comparative analysis of international experience in the implementation of digital identification systems in various jurisdictions is conducted: from the Indian Aadhaar system and Singapore’s SingPass to European eIDAS standards and African solutions for financial inclusion. Successful cases as well as systemic problems related to cybersecurity and digital divide are identified. In the context of Russian practice, the stages of formation of the Unified Biometric System (UBS) and the regulatory framework governing remote identification are considered in detail. Based on our own calculations, the economic efficiency of implementing eKYC has been demonstrated: with an initial investment of 15 million rubles and a planning horizon of 3 years, the net present value of the project is positive and significant, the ROI indicator is high. Key challenges are formulated, including the risks of biometric data leaks, the need to bridge the digital divide, and ethical dilemmas. The directions of development are proposed, including the introduction of decentralized identification models (SSI), the improvement of the regulatory framework and the formation of public trust. It has been proven that eKYC is becoming a strategic asset for increasing financial inclusion, transparency and security of the banking sector.

eKYC, digital identification, biometrics, financial transparency, banking sector, remote identification, digital technologies, data security, financial inclusion, artificial intelligence

Nikolaev D. A., Sandzhieva A. A. From KYC to eKYC: how biometrics and digital identification strengthen financial transparency. Biznes. Obrazovanie. Pravo = Business. Education. Law. 2025;4(73):149—156. DOI: 10.25683/ VOLBI.2025.73.1469.