ACI Worldwide Leads the Pack in New KYC/KYB Benchmark, Spotlights Industry Gaps

November 11, 2025 – ACI Worldwide has been recognized as ‘Best in Class’ in Javelin Strategy & Research’s 2025 Know Your Customer (KYC) and Know Your Business (KYB) Solution Scorecard, a leading independent assessment of identity verification and compliance solutions for U.S. financial institutions. However, the report also reveals significant gaps in the industry’s ability to address emerging financial crimes, most notably the detection of human trafficking.

The annual scorecard, released today, evaluated 17 leading vendors based on capabilities, use cases, and functionality. ACI Worldwide distinguished itself with a comprehensive platform that seamlessly integrates both KYC and KYB processes, a crucial advantage in an era of increasingly complex financial networks. LexisNexis Risk Solutions and NICE Actimize were also recognized as strong performers.

“Financial institutions are facing an evolving landscape of regulatory scrutiny and increasingly sophisticated fraud threats,” explains Jennifer Pitt, Senior Analyst, Fraud Management at Javelin Strategy & Research. “The ability to effectively verify identities and understand the relationships between individuals and businesses is paramount. ACI’s solution demonstrates a strong commitment to these principles.”

Beyond Compliance: Addressing the Gaps

While ACI Worldwide’s performance highlights the advancements in KYC/KYB technology, the Javelin report emphasizes a concerning trend: many supplementary use cases that enhance the effectiveness of these solutions remain underdeveloped. Specifically, the report identifies human trafficking detection as a significant area of weakness. Less than half (41%) of the vendors assessed offer dedicated tools for identifying and preventing financial flows linked to human trafficking.

“We’ve seen a growing awareness of the role financial institutions can play in combating human trafficking,” says a source familiar with the Javelin research. “However, translating that awareness into effective detection tools requires significant investment and a dedicated focus. Many institutions are prioritizing other forms of fraud, leaving a critical gap in their defenses.”

This gap is particularly concerning given the complex nature of human trafficking networks and their reliance on sophisticated money laundering techniques. Financial institutions often struggle to identify the subtle patterns of activity that indicate trafficking-related transactions, especially when these transactions are masked by legitimate financial activity.

The Convergence of KYC and KYB

The Javelin report highlights the growing convergence of KYC and KYB processes. Traditionally, these have been treated as separate functions, with different requirements and procedures. However, the report argues that this approach is no longer sufficient. Increasingly, financial criminals are exploiting the boundaries between individual and business identities to conceal their activities.

“The lines between personal and business finances are blurring,” explains a fraud prevention expert. “Criminals are using shell companies and nominee directors to hide their ownership and control of funds. Financial institutions need solutions that can seamlessly integrate KYC and KYB data to get a complete picture of their customers and their relationships.”

ACI Worldwide’s platform addresses this need by providing a unified view of customer identities, regardless of whether they are individuals or businesses. This allows financial institutions to more effectively identify and mitigate risks associated with complex financial networks.

Looking Ahead: AI and the Future of Fraud Detection

The Javelin report also emphasizes the growing importance of artificial intelligence (AI) and machine learning (ML) in fraud detection. AI-powered solutions can analyze vast amounts of data to identify patterns of activity that would be impossible for human analysts to detect. However, the report cautions that AI is not a silver bullet.

“AI can be incredibly powerful, but it requires high-quality data and careful training,” says a technology consultant specializing in financial crime. “Financial institutions need to invest in data infrastructure and develop robust AI models to get the most out of these technologies. They also need to be aware of the potential for bias and ensure that their AI models are fair and accurate.”

The report suggests that the next generation of successful KYC/KYB solutions will leverage AI to automate many of the manual processes involved in identity verification and risk assessment. This will free up human analysts to focus on more complex cases and emerging threats.

Industry Response and Competitive Landscape

The Javelin report is expected to intensify competition among KYC/KYB vendors. Companies that are lagging behind in areas such as AI and human trafficking detection will likely face pressure to invest in new technologies and capabilities.

While ACI Worldwide currently holds the ‘Best in Class’ designation, several other vendors are well-positioned to compete. LexisNexis Risk Solutions and NICE Actimize are both recognized as strong performers, and other companies, such as XTN Cognitive Security and Lynx, are gaining traction with innovative solutions. Experian, TransUnion and Onfido, all major players in the identity verification space, are also expected to continue to compete aggressively.

The report serves as a crucial benchmark for the industry, guiding both vendors and financial institutions in their efforts to combat financial crime and protect the integrity of the financial system. As fraud threats continue to evolve, the need for robust and innovative KYC/KYB solutions will only become more critical.

The Javelin 2025 KYC/KYB Solution Scorecard is available for download on the Javelin Strategy & Research website. The report provides a detailed analysis of the competitive landscape and offers valuable insights for financial institutions looking to enhance their fraud prevention capabilities.