Designing KYC Flows That Actually Convert

The KYC Problem

Every fintech product that touches money needs KYC (Know Your Customer). It's not optional. But the way you implement it can mean the difference between 40% and 80% completion rates.

We've designed KYC flows for multiple products. Here's what works.

The Psychology of KYC

Users abandon KYC for predictable reasons:

1. Too long: They don't have 15 minutes right now
2. Too confusing: Unclear requirements, unexpected steps
3. Too invasive: Asking for things that feel unnecessary
4. Too broken: Technical failures during document capture

Each of these is solvable with good design.

Patterns That Work

Progressive disclosure

Don't show all steps upfront. Reveal them as users complete each stage. A 5-step process feels shorter when you only see one step at a time.

Save progress automatically

Users should be able to leave and return without losing work. This is table stakes but many products still don't do it.

Explain why you need each piece of information

"We need your ID to verify your identity as required by Peruvian financial regulations." This builds trust and reduces friction.

Offer multiple document options

Not everyone has a passport. Accept national IDs, driver's licenses, and other locally relevant documents.

Handle failures gracefully

Document capture often fails. Give clear feedback: "The image is blurry. Please try again with better lighting."

Technical Implementation

Your KYC provider matters, but so does your integration:

• Async processing: Don't make users wait for verification to complete. Let them continue with limited functionality.
• Webhook reliability: KYC status updates need to be 100% reliable. Build idempotent handlers.
• Fallback flows: Have a manual review process for edge cases. Some users will never pass automated checks.

Metrics to Track

• Step completion rates: Where do users drop off?
• Time to completion: How long does the full flow take?
• Retry rates: How often do users need multiple attempts?
• Support tickets: What questions come up most?

Our Approach

For our wallet product, we achieved 73% KYC completion by:

1. Breaking the flow into 3 clear stages (identity, address, selfie)
2. Allowing users to start using the app before completing KYC
3. Sending reminders at optimal times (not immediately after drop-off)
4. Providing in-app guidance for common document capture issues

Building a regulated product? Let's design your compliance UX together.