Alexis Kestler
Identity verification is a crucial part of the customer onboarding process for many businesses today. With rising concerns around fraud, money laundering and regulatory compliance, having a robust identity verification system in place is no longer optional.
According to a recent survey, nearly 60% of companies say preventing fraud is their top priority when verifying identities. At the same time, around 57% want to improve customer experience during onboarding.
This creates a need for identity verification solutions that are not just highly secure but also easy to use. The right verification tools can help create a smooth onboarding journey for genuine customers while keeping fraudsters at bay.
In this article, we discuss the top 8 identity verification solutions that enable secure and seamless customer onboarding.
Why is Identity Verification Important for Customer Onboarding?
Identity verification is the process of validating that customers are who they claim they are. It involves validating information like names, addresses, date of birth and government IDs.
For many businesses dealing with financial transactions or sensitive personal data, identity verification is a mandatory part of regulatory compliance. Regulations like KYC (Know Your Customer) and AML (Anti-Money Laundering) make identity verification mandatory in sectors like:
- Banking
- Lending
- Investments
- Cryptocurrency exchanges
- Gaming
- eCommerce marketplaces
Apart from meeting compliance requirements, identity verification also helps businesses:
- Prevent identity theft and fraud during customer acquisition
- Reduce risk exposure from fake or risky users
- Build trust by validating users right at onboarding
- Streamline onboarding by auto-filling user data
- Maintain updated user profiles for KYC/AML monitoring
Without identity verification, customers may end up dealing with manual paperwork, delays and friction during onboarding. Businesses may also incur losses from fraud if fake users slip through the cracks.
The right identity verification solution helps create a smooth onboarding experience for legitimate customers while stopping bad actors in their tracks.
Key Features of Identity Verification Solutions
Identity verification solutions come with a robust set of features to validate user identities in a secure manner. Here are some key capabilities to look for when choosing an identity verification tool:
Document Verification – Scans IDs like driving licenses, passports and verifies details against government databases. Uses optical character recognition (OCR), document specs matching and hologram detection.
Facial Recognition – Matches selfies to ID photos for biometric validation. Uses AI and computer vision for accuracy.
Proof of Life – Uses challenges like blink detection, smile or spoken phrases to validate liveness. Prevents spoofing with photos/videos.
Address Verification – Checks user address against reference databases to ensure validity.
Phone / Email Verification – Validates user phone numbers and email IDs through OTPs or database checks.
Watchlist Screening – Checks user details against watchlists like sanctions, PEPs and adverse media for risk.
SCA Compliance – Supports multi-factor authentication flows needed for platforms like PSD2 Strong Customer Authentication.
Data Validation – Validates entered user data is of the right format, length and type. Pre-fills data when possible.
Fraud Risk Analysis – Uses AI and ML models to analyze hundreds of risk signals and flag high risk applicants.
Workflow Automation – Orchestrates different steps like document, biometric and phone verification into a single automated workflow.
API Integrations – Provides REST APIs, web SDKs and mobile SDKs to easily integrate verification into apps.
Reporting – Provides dashboard analytics and audit reports on verification attempts, pass rates, failures etc.
The right combination of these features ensures airtight identity verification that combats even sophisticated fraud attempts. At the same time, automation and optimization features like data validation, pre-fill and risk analysis also create a smooth onboarding experience for genuine users.
Top Identity Verification Solutions for Secure Onboarding
Based on research and customer reviews, we have compiled the top identity verification solutions used by leading businesses globally:
1. Jumio
Jumio is one of the most widely used AI-powered identity verification solutions, with over 600 million verifications processed for global brands.
It supports over 200 countries and territories with an extensive document library covering passports, driving licenses, ID cards, visas and more. Jumio uses computer vision, facial recognition and machine learning to validate government IDs and live selfies.
For proof of address, Jumio extracts and cross-verifies address data from documents. Users can also upload supporting documents like utility bills for additional validation.
Jumio offers a unified API for web and mobile integrations across all platforms and stages of the onboarding process. It also provides detailed analytics to monitor verification performance.
Key Features
- Fast document and face verification
- Extracts ID data for auto-fill
- Address data extraction and validation
- Watchlist screening
- Biometric liveness detection
- High verification accuracy
- Detailed reports and analytics
Ideal For
Financial services, crypto exchanges, online gaming/gambling, eCommerce marketplaces.
Pricing
Usage based pricing starting from $0.10 per verification
Website
2. Onfido
Onfido offers AI-powered identity verification covering over 195 countries globally. Along with standard document and facial verification, Onfido provides proprietary features like Proof of Address and Proof of Life.
Proof of Address validates entered addresses against reference databases. Users can also upload supporting documents.
Proof of Life uses AI challenges like smiling, blinking and head movements to establish biometric liveness. This prevents frauds using photos, videos or masks.
Onfido provides extensive configuration options so businesses can customize verification as per risk levels. It offers web SDK, mobile SDK and REST APIs for easy integration.
Key Features
- Document and facial biometric verification
- Proof of Address and Proof of Life
- Custom workflows based on risk tier
- Tamper detection for IDs and selfies
- Smart AI fraud detection
- Real-time address lookups
- Web SDK, mobile SDK and APIs
Ideal For
Banks, FinTech, eCommerce, crypto exchanges
Pricing
Pay per verification – Starts from $0.60 per verification
Website
3. Trulioo
Trulioo is a global identity verification provider covering over 250 countries and territories worldwide. It offers document verification, facial recognition, address validation and phone/email verification.
Trulioo‘s GlobalGateway platform has inbuilt connections to over 500 data sources across the globe for identity data verification and enrichment. These include government and utility databases, mobile networks, credit bureaus and more.
Businesses can configure over 100 fraud signals and risk attributes to fine tune verification for their needs. The AutoVerify feature uses machine learning to optimize verification automatically.
Trulioo is integrated with leading CRMs, payment processors and business software platforms. It offers web embeddable UI, mobile SDKs and REST APIs for easy integration.
Key Features
- Document verification with hologram detection
- Facial recognition and biometrics
- Global data network for verification
- Address validation and phone/email verification
- Hundreds of fraud risk signals
- Machine learning based risk scoring
- Auto optimization of verification
- CRM and platform integrations
- Web embeds, mobile SDKs and APIs
Ideal For
Financial services, online gaming, crypto, P2P transactions, online marketplaces
Pricing
Transaction based pricing starting from $0.005 per verification
Website
4. Acuant
Acuant provides AI-based identity verification covering over 200 countries and territories worldwide. It offers advanced document, facial recognition and biometric liveness features.
Acuant‘s document verification auto-captures ID details and also detects spoofing attempts. Face recognition matches selfies to ID photos for added security.
For proof of life, Acuant offers passive liveness detection as well as active challenges. This verifes that the user is physically present during onboarding.
Acuant also provides additional verification features like chip/RFID reading, barcode/QR scanning, device recognition and geo-location.
It offers cloud APIs as well as on-premise solutions. Acuant also provides Assisted Digital Identity Verification with human-in-the-loop reviews.
Key Features
- AI-based document and facial verification
- Passive and active proof of life
- Chip, RFID, barcode reading capabilities
- Device binding and geo-location
- Assisted manual reviews
- Cloud API and on-premise deployment
Ideal For
Banking, financial services, telecom, retail, healthcare
Pricing
Scales based on usage. Contact for quote.
Website
5. Mitek
Mitek is a leading provider of digital identity verification solutions. It combines advanced OCR, computer vision, AI and machine learning techniques for identity corroboration.
Mitek automatically extracts data from IDs like driving licenses, passports and national IDs from over 200 countries. It also provides facial recognition by matching selfies to ID photos.
For proof of life, Mitek offers passive liveness detection as well as step-up challenges. This ensures users are not just uploading photos but are physically present.
Mitek‘s solutions are natively embedded across leading mobile platforms. It offers easy integrations across web, mobile and other channels via REST APIs.
Key Features
- Auto data extraction from IDs
- Facial recognition and biometric matching
- Passive and active liveness detection
- NFC reading support
- Device binding capabilities
- Unified REST APIs
- Native support for mobile platforms
Ideal For
Banks, lenders, marketplaces, crypto platforms, money transfer apps
Pricing
Flat monthly fee starting from $1,000 per month
Website
6. IDology
IDology provides a suite of identity verification, fraud prevention and compliance solutions catering especially to US-based businesses.
For identity proofing, IDology offers PASSporT – a digital verification service widely used by US state governments. This helps validate identities against thousands of public and proprietary data sources.
IDology also provides document verification, facial recognition, phone / email verification and multifactor authentication capabilities.
Businesses can configure risk-based authentication flows that step up verification as risk levels increase. IDology also screens users against watchlists and sanction lists.
Key Features
- PASSporT digital identity verification
- Document, facial and phone verification
- Custom risk workflows
- Watchlist screening
- Data prefill and enrichment
- Real-time analytics and alerts
- REST APIs and web / mobile SDKs
Ideal For
Financial services, healthcare, eCommerce, online gaming, crypto platforms
Pricing
Contact-based customized pricing
Website
7. GIACT
GIACT offers a full spectrum of customer verification, authentication and fraud prevention solutions.
For identity verification, it provides document, facial recognition, device ID and location services. GIACT extracts and validates data from IDs against official sources.
Users also need to capture a photo/selfie for biometric facial recognition.Proof of location is established using device IP and GPS.
GIACT deploys bank-grade security and encryption standards across its platforms. It offers a unified REST API for easy integration across channels.
Key Features
- ID verification and facial recognition
- Device binding and geo-location
- Phone ownership verification
- Proxy piercing for IP validation
- Watchlist screening
- Device intelligence and behavioral biometrics
- Real time risk scoring engine
- Unified REST API
Ideal For
Financial services, ecommerce, online gaming, crypto exchanges
Pricing
Contact-based customized pricing
Website
8. tyntec
tyntec provides phone-based identity verification solutions using user phone numbers as the root of trust.
Users go through a one-time mobile registration process by installing the tyntec app. This binds their phone number and device together into a verified digital identity.
Once registered, users can instantly authenticate across web and mobile apps via OTPs, missed calls or cryptographic signing.
tyntec also offers KYB (Know Your Business) phone verification solutions. These are used to validate business phone numbers and establishments.
tyntec provides high deliverability globally through connections with 800+ carriers in 190+ countries.
Key Features
- Phone-centric digital identity verification
- One-time mobile registration process
- Authentication via OTPs, missed calls, QR codes
- KYB solutions for business verification
- Global phone number validation
- SDKs for web, iOS and Android
- Industry-leading deliverability
Ideal For
Banks, FinTech platforms, on-demand services, crypto apps, remote gig workers
Pricing
Volume-based pricing starting from $0.008 per verification
Website
Key Considerations for Evaluation
Here are some important criteria to evaluate when choosing an identity verification solution:
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Coverage – Ability to verify users globally across documents, languages, address formats etc.
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Accuracy – Proprietary algorithms, image analysis, biometric techniques to lower failure rates.
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Security – Bank-level compliance, encryption, redundancy across solution architecture.
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Speed – Rapid results delivery crucial for onboarding. Look for systems optimized for performance.
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Automation – Auto-capture of identity data, inbuilt workflows, risk analysis reduce manual reviews.
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Developer Experience – Easy SDK and API integrations across web, mobile and other touchpoints.
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Reporting – Detailed reports and analytics into verification attempts, pass rate, failures etc.
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Pricing – Compare pricing models across verification volume tiers and features needed.
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Customer Support – Responsive technical and integration support, consultation on custom needs.
Thoroughly evaluate solutions on these parameters before selection. Request demos, trials and work with the vendor to fine-tune flows.
Conclusion
Identity verification is no longer an isolated compliance exercise. Done right, it becomes an integral part of delivering a smooth sign up experience to legitimate customers.
Utilizing the latest advancements in AI, biometrics and machine learning, modern verification solutions provide airtight security without introducing unnecessary friction.
Businesses dealing with customers online are advised to invest in robust identity verification platforms. The effort and costs incurred are well worth the risk mitigation and seamless customer onboarding it enables as part of a compliant KYC process.
