Welcome to our series that is focused on helping financial regulated companies navigate the vendor landscape to facilitate Know-Your-Client (KYC), Know-Your-Business (KYB) & Anti Money Laundering (AML) verification! In this article, we will highlight the customer ID verification (IDV) software solutions available to financial organizations.
ID Verification Overview
The need for IDV technology is growing and organizations are increasingly required to ascertain the identity of their customers to reduce fraud risk. While digital ID verification may be frustrating and cumbersome, newer technological offerings are improving this part of the experience.
With technology advancements in the fields of Artificial Intelligence, Machine Learning and specifically Deep Learning, IDV providers can verify customer identities using the initial documentation submitted 95% of the time. The process typically involves the customer scanning both sides of the ID document. With the aid of assisted image capture to guide users and ensure the image obtained is suitable, data is captured, text is extracted and any barcode is automatically matched against the relevant records.
Biometric and real-time liveness tests can also be integrated into the process. In this scenario, customers can be instructed to capture an image of themselves which is automatically cross-referenced and ratified using the image included on the ID document provided. In addition to detecting potential fraud indicators from ID documentation, additional review measures can be put in place based on the device, network and unique signals. Some providers also offer the option to cross-reference customer identities against AML and other relevant anti-fraud databases as an additional checking measure.
At Zaam, we offer the best in class IDV system using integrations with a range of vendors. Our onboarding platform provides numerous benefits by allowing financial organizations to:
- Simplify the customer onboarding process with automated ID document collection.
- Augment Customer Identification Programs (CIP).
- Detect and minimize fraud by identifying fake-ids, counterfeit documents, stolen identities, compromised, camouflaged or impostor documents and automatically rejecting them.
- Streamline the registration of legitimate customers by reducing the time associated with the onboarding process.
In order to deliver the best and most versatile service to our customers, we have undertaken an extensive review of the key players in this sector of the market. Below, we have outlined our findings with a summary of the key statistics and background information from the best data providers identified:
Veriff — In our view, Veriff offers the widest global reach and the most accessible solutions with different pricing tiers to accommodate companies of all sizes. It is based in digitally-famed Estonia with more than 300 employees along with another main office in New York.
Jumio — Headquartered in Palo Alto, Jumio employs thousands of employees in Asia to support its AI-Powered algorithms. As one of the largest vendors in the space, Jumio claims it has improved its tech offering to reduce the level of manual labor in its processes. One of its unique offerings for IDV providers is Document OCR Scanning, which enables non-ID document verification such as utility bills to prove addresses and can therefore further compliment and streamline the onboarding process.
Onfido — Raised $100 Million from TPG Growth on April 15th to become the most well funded digital identity verification company. Similar to Veriff, manual employees are involved if the algorithms are not providing clear results. Strong technology and latency scores, which is more tailored to enterprises. Higher threshold for small companies.
Socure — Well known for its identity verification solutions, machine learning techniques with biometrics, and data intelligence from email, phone, IP, social media and other sources. It offers a powerful document verification product and often forms part of a larger suite of KYC & fraud prevention processes that regularly receive great feedback from customers and end-users alike. Socure is a well-funded ($62M) NYC based company with over 150 employees.
Au10Tix — Prides itself in automated solutions that deliver results in 8 seconds or less, putting the company as the fastest provider of those reviewed. Au10Tix is used by PayPal, Visa, Grab and others and have already scanned 300M identities worldwide.
Comparison table
Most identity verification vendors provide similar basic features, such as;
- Integration — All companies provide SDKs, APIs, Iframes to integrate in your website or app.
- Pricing structure — one time integration fee and variable cost per check (based on tiers). With Zaam — you save on the one-time integration fee, and are able to enjoy for a better price per check.
- Customized solution — Varying degrees of customization, which include flows, liveness check opt-in, risk threshold.
However, they vary in terms of the underlying technology and the average processing time and match rates, the latter of which having the capacity to adversely impact the user experience. Key statistics and variants in respect to each of the providers reviewed is provided in the below table with a ‘winner’ shown in each category based on our findings:
*Response time — as disclosed by the companies. In some cases it’s not “apples to apples” and has not been vetted by us.
As demonstrated in the above table, there are differing approaches to the use of human workers in the space, with some companies (such as Jumio) relying predominantly on manual checking processes whereas others (Au10tix, Socure) are leading with technology and automation. It is worth noting that the latter, usually comes with a pricing premium.
Having undertaken our review, we have a comprehensive understanding of the functionality and technology available within the current IDV. Zaam can be tailored to the specific compliance needs of your organisation allowing you to focus on running your business. It is important to note that we are vendor-agnostic, so you could either work with our existing partners, or keep working with your own.
Our platform has been designed to accommodate all of your onboarding needs by allowing you to;
- Customize your workflow to streamline the collection of all client data,
- Run KYC, KYB & AML checks based on pre-determined and customized logic and flow, tailored to suit the needs of your organisation,
- Using our Smart Case Management tool, you can seamlessly manage both internal inter team relationships along with those with your external clients. The tool allows organizations to easily establish the status of customer applications using communication channels, activity logs, audit trails and analytics.
Zaam is your one stop shop for all your customer onboarding requirements. Focus on what matters for your business whilst saving time and money with us. Contact us for more details, a product demo or to sign up to receive the next article in the series.
