The landscape of identity verification is evolving rapidly, extending far beyond the traditional domains of fintech and banking. Acknowledging this shift, a global verification provider has recently received full regulatory approval for its non-document identity verification solution following a thorough audit by FINTRAIL, a consultancy known for its expertise in financial crime risk management and regulatory compliance.
This innovative non-document verification approach is set to be introduced in 10 new markets, including Australia, Canada, Hong Kong, and the UAE. Currently operational in 13 countries, the company is making significant inroads in the Asia Pacific (APAC) region, with notable presence in India and Indonesia.
According to the latest findings in the 2023 Identity Fraud Report, the prevalence of fake identification documents in developed nations has soared by an average of 163%, while counterfeit passports have risen by 147% from 2021 to 2023. In the APAC region, countries like Indonesia, Hong Kong, and Cambodia have reported more than a twofold increase in identity fraud rates, underscoring the urgent need for innovative verification solutions that can address these emerging challenges.
The non-document identity verification, or Non-Doc, method allows businesses to verify customer identities without requiring physical identification documents. Instead, users provide crucial personal information, such as an identification number, which is securely matched against government databases by the verification provider. This approach is becoming increasingly popular not only among businesses in the financial sector but also among online marketplaces and e-commerce platforms.
A recent press release highlights that Non-Doc has already proven to be an effective Know Your Customer (KYC) method across various jurisdictions. The advantages of document-free verification over traditional document-based methods are substantial:
- Faster Onboarding: The average verification time is reduced from 30 seconds to just 4.5 seconds.
- Increased Customer Pass Rates: Companies have reported a 35% increase in customer pass rates, with some instances seeing a doubling of this figure.
- Growth Opportunities: The solution’s extensive population coverage (over 95% in each country) facilitates business growth and expansion into emerging markets.
- Enhanced Efficiency: Automated user data extraction and immediate updates have led to a 53% reduction in verification processing times.
The efficacy of this solution was rigorously evaluated by FINTRAIL, focusing on two main aspects: regulatory compliance with local laws (including AML/CTF legislation and industry guidelines) and the technical effectiveness of the verification processes.
As the demand for secure identity verification continues to rise across various sectors, including online marketplaces, this regulatory approval signifies a pivotal moment in the evolution of identity verification solutions.