Strengthening KYB and KYC Initiatives with the RCS Edge

Although it’s been around for more than a decade, Rich Communication Services (RCS) is finally having its moment in the spotlight by actively revolutionizing the telecom landscape and establishing messaging as the cornerstone of consumer engagement and commerce. The impact of RCS is evident in its rapid adoption. In 2024, for example, brands significantly embraced RCS, with usage growing by 111% during Black Friday and Cyber Monday compared to 2023. In addition, brands that used RCS saw open rates of 53%, supported by verified and authenticated senders, highlighting its effectiveness in consumer engagement. Furthermore, RCS is expected to generate 18% of operators' business messaging revenue globally by 2029, underscoring its growing significance in the telecom ecosystem.

In this five-part series, “RCS Unveiled: The Future of Messaging,” we will dive into RCS – from why there’s a renewed focus on this messaging protocol to how it’s transforming the telecom ecosystem and customer engagement, securing commercial communications, and how it’s playing into industry’s KYB and KYC initiatives and more.

Trust is the foundation of effective business communication, and verifying both businesses and consumers is crucial in today’s digital economy. Two key processes, Know Your Business (KYB) and Know Your Customer (KYC), are integral to ensuring secure interactions between brands and consumers.

KYB focuses on verifying that businesses are legitimate entities and that the actual business is the entity enrolling in the RCS channel before they engage in communications. This process is essential for preventing fraudulent activities such as phishing scams and unauthorized messaging. Many industries, including finance and telecommunications, have already implemented KYB measures to validate business authenticity.

On the consumer side, KYC helps businesses confirm user identities, reducing risks associated with fraud, identity theft, and account takeovers. With the increasing frequency of data breaches, businesses must implement rigorous KYC checks to protect their customers.

Unlike other messaging platforms, RCS was designed with security at its core, and incorporates KYB and KYC authentication protocols, ensuring that both parties in a communication exchange are verified. 
By leveraging encrypted messaging channels and authentication mechanisms to maintain secure communication, RCS ensures messages come from verified sources and are private, safeguarding users from phishing attempts and fraudulent schemes.

Not only does this added security layer ensure that only authorized businesses and verified users can engage in messaging, but it also significantly reduces fraud risks, strengthens trust and ultimately improves customer relationships and brand reputation.

In the final installment of this series, we will explore how RCS and phone number authentication are enhancing digital security.