Identity fraud leads to losses of over $500 billion every year globally. With rising digital transactions, identity verification is crucial before doing business. Regulations like KYC and AML also mandate identity confirmation.
This article discusses the top identity verification solutions that help leading businesses securely onboard customers.
Why Identity Verification Matters
Identity verification validates government-issued credentials of customers during onboarding. This establishes trust and prevents identity frauds from accessing products/services.
Key business benefits include:
- Stop revenue leakage from false applicants
- Reduce manual effort in checking credentials
- Build customer trust through better fraud detection
- Ensure compliance with regulations
- Enable completely online account signup reducing cost
Top global brands across banking, crypto, logistics and more now verify identities in seconds using online verification solutions.
Verifying digital identities is vital for the global digital economy. 20% of organizations lose over $2.5 million every year to identity frauds – Javelin Strategy
Overview of Identity Verification Methods
Online identity verification combines the following leading techniques:
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Document verification: Checks government IDs like driving license, passports etc. retrieved from official databases
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Facial recognition: Matches selfies to ID photos using AI and biometrics for detecting spoofing
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Proof of address: Validates residence by checking digital documents having home address
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Background screening: Checks watchlists and sanctions databases to detect financial crimes
Advanced systems fuse above signals with historical data, biometrics and machine learning for reliable automated decisions. Orchestration platforms also allow configuring custom flows.
Now let‘s review the top 10 identity proofing solutions used globally for seamless and risk-free onboarding.
1. Onfido
Onfido was founded in 2012 by three entrepreneurs – Husayn Kassai, Ruhul Amin and Eamon Jubbawy with a vision to make identity verification accessible.
Onfido verifies over 4 million identities every year for leading brands like Revolut, Zipcar and Orange. It recently raised $100 million taking total funding to over $200 million.
Key Features
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5000+ document templates across 195 countries verified in real-time
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Passive biometric checks like facial recognition, eye movements, typing analysis to catch frauds
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Inbuilt AML checks across global watchlists like Worldcheck, Trulio, Dow Jones
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Advanced analytics combining risk signals from various sources
Benefits
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90% fewer falls outs compared to manual verification
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Smooth onboarding drives 33% higher take rates
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66% faster customer acquisition with automation
Onfido‘s intelligent dashboards provide visibility into identity verification operations
Onfido offers easy API and SDK integration. Pricing is based on identity checks consumed. It starts from $0.60 per check for basic document verification.
Given its versatile platform and rapid innovations, Onfido has emerged as the clear leader in identity proofing space.
2. Jumio
Founded in 2010, Jumio started by focusing exclusively on ID verification via mobile cameras. After multiple acquisitions, Jumio now provides a full-stack automated identity proofing solution.
Key Features
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AI-powered document and face verification with proprietaryactive liveness detection to spot spoofing
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Checks against watchlists like OFAC, UN, Interpol, cryptocurrency lists
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Certified for financial services use adherence to regulations like GLBA, GDPR
Benefits
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Highest verification accuracy reducing manual reviews
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Omnichannel implementation across web, mobile, call centers
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Near-perfect customer data compliance rated
Jumio has raised over $160 million so far, one of the best funded startups in identity verification space. Some key customers include United Airlines, Coinbase and HSBC.
It offers simple usage-based pricing starting from $0.09 per identity verification check. Volume discounts available.
3. Trulioo
Founded in 2011, Canadian startup Trulioo has built world‘s largest identity verification data repository covering over 5 billion people worldwide.
Key Features
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5 billion global identity records for seamless international customer onboarding
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395+ data sources across 195 countries for address, national IDs and more
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Sanctions watchlist monitoring powered by in-house compliance tool
Key Benefits
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Highest data quality reduces fallback rates for impossible to verify applicants
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Helps meet regulatory needs with inbuilt GRC tools
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Solution tailoring and fraud investigation services
Trulio offers fittings across platforms via API, batch processing and portal-based access supporting flows in 220+ countries.
It is the preferred choice for fintechs, online marketplaces, gig economy platforms that require extensive global reach.
4. Persona
Founded in 2018, Persona focuses on orchestrating flexible identity verification flows combining different signals – data, documents, biometrics etc.
Key Capabilities
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Workflow studio to easily build and iterate customized verification workflows
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20+ step blocks including ID verification, sanctions check, biometrics, even video interviews!
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Fully hosted flows for rapid deployment while retaining full control
Benefits
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Minimizes IT dependency through low-code environment
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Improves verification rates for applicants having thin profiles
Persona is used by leading crypto exchanges, logistics providers and videogame platforms to streamline onboarding.
It follows a simple pay-as-you-go model based on verification transactions enabled via API and web app SDK integrations.
5. Shufti Pro
Launched in 2017, Shufti Pro focuses on meeting specialized identity proofing needs across global markets with an emphasis on quick deployment.
Key Features
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230+ document verification checks supporting major 6000+ ID variants
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Video KYC interviews enables agent assisted onboarding
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15 languages supported for UX localization
Benefits
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Easy setup without engineering effort via hosted links
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Wide language coverage ideal for global customer acquisition
Shufti offers usage-based pricing starting from $0.09 per verification check with volume discounts. APIs and hosted flows quickstart options simplify integrations.
Latest Innovations in Identity Proofing
Here are some latest technological advancements set to define the next phase of identity verification:
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Blockchain-based decentralized identity will allow reusable digital credentials lowering repeat KYC needs
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AI and ML models now exceed human accuracy for document and biometric checks
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Behavioral biometrics using thousands of device and navigation signals detects sophisticated bots
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Consent-based data sharing will enable verification without seeing user data enhancing privacy
Key Trends Reshaping Identity Proofing Space
These major trends are impacting how leading brands approach customer identity confirmation:
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Verification accuracy today matches manual checking reducing reviews
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Solutions must support complex applicant scenarios as digital onboarding rises
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Need for uncompromised compliance as regulations get stringent
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Expectation for real-time secure verification across web and apps
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Battle against increasingly sophisticated identity fraudster syndicates
Best Practices for Onboarding Customers
Here are five best practices modern enterprises follow for customer onboarding:
Omnichannel flows: Unified identity proofing across web, mobile, call centers, branches
International verification: Check applicants from 200+ countries out of the box
Passive biometric liveness detection: Goes beyond facial match to ensuring liveness
Layered cross-checks: Corroborate identity signals from documents, biometrics, background data
Continuous verification: Monitor post-signup activity for signs of suspicious activities
The Criticality of Identity Verification
Without robust identity checks, digital businesses face massive risks including:
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Revenue leakage from false applicants misusing products and services
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Penalties and lawsuits due to lack of compliance with growing regulations
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Reputational damage from data breaches by hacking groups
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Hindered growth with suboptimal applicant conversion and abandonment
Implementing reliable customer identity confirmation is hence vital for business health. Modern solutions make the process automated and frictionless leading to:
✔ 90% reduction in manual verification effort
✔ 60% improvement in onboarding conversion rates
✔ 30% increase in speed to revenue
As digital interactions continue to rise, identity proofing space promises to be one of the most crucial enablement drivers. Advanced verification techniques and global data access will remain paramount for combating fraud. User experience will emerge as a differentiator.
Most leading identity verification platforms provide simple integration support. Solutions like Onfido, Jumio and Trulioo help leading brands onboard global applicants safely and swiftly into the world of digital services.
