What does KYC mean in banking and credit-card applications?

KYC means “Know Your Customer” in banking and credit-card applications.

KYC refers to procedures financial institutions use to identify customers and understand the nature of their relationships with the institution. Depending on the jurisdiction and product, checks may include identity documents, address information, beneficial-ownership details, and information about the expected use of an account.

Banks use KYC controls as part of broader anti-money-laundering and counter-terrorist-financing programs. The exact documents, thresholds, and verification rules vary by country, so KYC is a general compliance framework rather than one globally identical form.

KYC is often confused with a credit check. A credit check evaluates borrowing history and repayment risk, while KYC primarily establishes who the customer is and helps the institution assess financial-crime risks. A bank may perform both checks when approving a credit card.