KYC Automation for High-Volume, Low-Value Transactions

Curious how others are handling KYC/KYB for platforms that process a high volume of relatively low-value transactions, particularly in cross-border payments or specific niche fintech areas. The cost-benefit of full, traditional KYC on every single user, especially those transacting small amounts, seems to often put a significant drag on user acquisition and operational efficiency. We're running into issues where the friction from our current process is becoming a bottleneck.

Are there effective strategies or technologies being deployed that manage to satisfy regulatory requirements without completely alienating users or incurring disproportionate costs? I'm thinking about tiered verification, specific data points proving identity without full document upload for lower thresholds, or even advanced behavioral analytics that might flag suspicious activity more efficiently than upfront identity checks. The goal is to onboard legitimate users quickly while still meeting AML obligations and mitigating fraud risk. Any insights on vendor solutions or internal frameworks that strike this balance would be appreciated. "Light touch" KYC is often discussed, but how is it practically implemented without attracting unwanted regulatory attention?