Securing Finances with Know Your Transactions

In this digital world, where we get to see mobile applications for almost every service online. Any users are getting their hands on several online platforms that are completely digital and involve minimum physical user interaction. Each of the products is available online with very heavy discounts on several items. The online business is growing each day with heavy investments in online platforms by organizations and their clients. 


Huge sums of money are being invested in the digital market to change the whole perspective of the new world. According to Statista, the projected amount of digital investment globally is said to be reaching new heights in upcoming years, with a mighty figure of US $2214 billion recorded in 2022.


Due to improper checks on online banking platforms, the E-commerce industry has faced multiple losses in terms of online fraud and the figure is increasing each day with more than $17 billion lost in 2021.


What is KYT (Know Your Transaction)?

KYT is a process performed by several organizations relate to the financial sector to check and identify business transactions by analyzing online transactional data. The KYT process also monitors transactions to verify the user’s activity for any suspicious or fraudulent transactions. It is also used to derive conclusions and data-driven solutions to various financial problems faced by businesses online. In simple terms, the KYT process provides security to online business transactions.

Technologies used in KYT Process

Multiple new technologies are playing their part in the KYT cycle. With the digital implementation of transactions of finances, the technologies help in automating and regulating security. The major technologies used by most banking sectors are:

  • Artificial Intelligence

Artificial Intelligence plays an important role in learning different patterns of transactions by the system. Through ML banks identify the different transactional patterns of different users online. 

  • BlockChain

The BlockChain network is a secure online system for digital transactions; it ensures security through its Distribute ledger technology (DLT). The KYT check is performed on most banking sectors that use the BlockChain system.

The KYT Verification Process

The KYT verification consists of several checks and verification processes that are carrie out by financial institutions (FIs) to regulate their business transactions and prevent transactional money laundering in the online system. The KYT Process is compose of several phases each of which increases security among the banking data.

Knowing the Client

The first process of most financial sectors which comply with the KYT verification is the Know your customer or know your client check that is implement to identify the client and all their information regarding the business. This process is ensure to prevent customer risks and carry out the CDD (Customer Due Diligence) process when interacting with any organization or business. The CDD process is carrie out in accordance with the Anti-money laundering Act (AML/CFT) propose by the authorities to make sure online theft of money is minimize when onboarding a new customer.

Risk Assessment

The second phase of the Know your transaction process is base on the calibration of associate risks. And measures involved in the transaction cycle. Financial institutions assess the areas of suspicion by analyzing transactional data to further process the information and eliminate the risk that lies in the digital transaction system. The risk assessment is perform by detecting and evaluating the abnormalities in the system that can cause malfunctions and issues of data integrity.

Implementation of Safety Measures

Every financial organization has policies to safeguard the assets of the business in case of any emergency. The FIs are keen to retransmit data whenever any data breach is detect in the system. The implementation phase is effective as it strengthens the digital transactional system. It is carrie out by complete employment training on handling transactions with pre and post-transaction checks and alerts.

Resolve and Protect

The last phase of KYT (Know Your Transaction) carries resolving measures to protect the finances from attackers. It involves an effective customer-to-business relationship with proper verification of identity and transaction processing. This phase is also call the transactional quality assurance phase as it guarantees the processing of the finances.


With the new digital interaction of users worldwide, fraudsters are getting digital with new ways of stealing information for online theft. And money laundering through online means. The transaction monitoring process is most vulnerable in this digital world as many organizations have. And businesses are facing difficulties due to the risks of online theft and fraud. 


Each of us has heard about KYC compliance to verify the customer. The KYT check is mostly concerned with Banking and financial transactions. Most financial sectors follow the KYT (Know Your Transaction) Verification to ensure safe transaction processing online.