Understanding KYC (Know Your Customer)
At HFD, KYC plays a vital role in creating a safe and secure financing experience for both providers and their patients. In this article, we’ll walk through how HFD approaches KYC and break down the key components of our process.
What is KYC?
KYC (Know Your Customer) is the process financial institutions use to verify a customer’s identity and understand their level of risk. At its core, KYC ensures that the person applying for or using a financial service is truly who they claim to be.
KYC is a key regulatory requirement designed to prevent fraud, money laundering, and other illegal financial activity, helping keep the financial system safe for both businesses and consumers.
Why KYC Matters at HFD
KYC is an essential part of operating in a regulated financial environment. It helps organizations:
-
Confirm customer identity during onboarding and throughout the customer relationship
-
Prevent fraud, money laundering, and other financial crimes
-
Meet regulatory and compliance requirements
-
Maintain a safe and trustworthy financial system
What Applicants Can Expect
When applying for an HFD payment plan:
✅If an applicant passes KYC, they continue through the normal approval process.
🚫If an applicant does not pass the KYC check, they will receive a decline message stating that HFD could not verify their identity.
👍Applicants are encouraged to reapply if the information entered was incorrect or incomplete.
Applicants should carefully review their information, as any inaccuracies may cause them to fail KYC, including:
- Social Security Number (SSN
- Legal name
- Date of birth
- Address
All information should match what is listed on common identity documents.
What KYC Includes
KYC typically involves three key components:
- Customer Identification
- Collecting and validating basic information, such as government-issued identification and proof of address.
- Customer Due Diligence (CDD)
- Reviewing the customer’s background to understand the level of risk associated with their account activity.
- Ongoing Monitoring
- Continuously monitoring transactions for unusual or suspicious activity and re-checking customer information when needed.
The Takeaway
KYC is an essential safeguard in financial services. By verifying identity in real time, HFD strengthens fraud prevention, ensures regulatory compliance, and protects both providers and patients, without impacting approval rates or creating additional provider responsibilities.
👉Check out our KYC FAQ's here