Chris Hooper

Why online gaming firms need a step-change in player verification - and how automated age verification and identity checks are developing.

VIDEOGAMING: Comprehensive age verification is the new frontier for video-gaming

Gaming

The KYC Pain Points Gaming Companies Must Overcome | Veriff.com

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The KYC pain points gaming companies must overcome

Discover why challenger banks need a step-change in KYC processes - and why selfies are the answer.

The Know Your Customer challenges neobanks must overcome

Finserv

The Know Your Customer Challenges Neobanks Must Overcome | Veriff.com

Today's consumers expect swift access to gaming services, but they’ll soon go elsewhere if security is compromised.

Why a world class KYC strategy matters to gaming customers

Why A World Class KYC Strategy Matters To Gaming Customers | Veriff.com

Consumers demand swift onboarding, but they’ll soon bank elsewhere if security is compromised or reputational harm occurs.

Why a killer KYC strategy matters to neobank customers

Why A Killer KYC Strategy Matters To Neobank Customers | Veriff.com

Know Your Customer (KYC) standards and requirements can prove a friction-filled and complex challenge for companies. Discover how identity verification (IDV) is transforming KYC, helping to drive growth while achieving compliance.

Troubleshooting KYC: Optimizing process, powering growth, and improving user experience

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Troubleshooting KYC: Optimizing Process, Powering Growth, And Improving User Experience | Veriff.com

Identity Verification

KYC stands for know your customer. The associated standards are designed to protect financial institutions against fraud, corruption, money laundering, and terrorist financing.  

In banking, KYC involves three key steps:

Establishing the identity of the customer

Understanding the nature of that customer’s activities and their source of funds or wealth

Assessing the money laundering risk associated with that customer

As well as being critical for assessing customer risk, KYC procedures are a legal requirement for banks and financial institutions that must comply with anti-money laundering (AML) laws.

To help you learn more about the KYC process, we’ve put together this guide that includes all the latest guidance. We’ll look at exactly why KYC is so important, the steps you need to take, and how our solutions can help you.

By law, all financial institutions are required to know their customers. If a financial institution fails to verify the identity of a customer and that customer goes on to commit a financial crime such as money laundering or terrorist financing, then the bank can face fines, sanctions, and reputational damage.

On top of this, effective KYC processes can also protect a bank from fraud and losses that are associated with illegal funds and transactions. This is because the process has been specifically designed to help prevent banks and other financial services from being used for money laundering.

The KYC advantages a bank experiences are numerous. Not only do these procedures ensure that bad actors cannot exploit their services, but they also help enhance the bank’s reputation and save them money. 

However, that isn’t to say that KYC disadvantages don’t exist. After all, if they’re not properly implemented, then KYC processes can be burdensome and off-putting for some customers. That said, KYC processes are mandatory, and you must ensure that you have the correct checks in place before you allow a customer to access your services.

In order to ensure KYC compliance, you must establish the customer’s identity, understand the nature of that customer’s activities, and assess the level of risk they pose. To do this, your KYC program must include the following three steps:

Before a customer is allowed to open an account, their identity must be established and verified. At a minimum, the bank should ask the customer for their:

Once a customer has provided this information, they must then supply the bank with a government-issued identity document that confirms the accuracy of this information. The bank can then verify that this document is accurate by checking with third-party databases.

On top of this, the latest KYC guidance says that banks must ask the customer to supply a selfie. Using biometric authentication techniques, the bank can then verify that the person providing the information is also the owner of the identity, rather than a fraudster who has stolen that information.

Following this, the bank must then perform customer due diligence (CDD) checks. There are three possible levels:

Each of these forms of due diligence is more onerous than the last. While simplified due diligence processes are reserved for extremely low-risk customers, enhanced due diligence processes are often used for incredibly high-risk customers, such as politically exposed persons or someone who is the subject of sanctions. 

During the due diligence process, KYC guidance states that the bank must ascertain the identity and the location of the customer. They must also develop an understanding of their business activities.

Using this information, the bank can then classify the customer’s risk category before storing this information and any additional documentation digitally. Keeping records of CDD and EDD checks performed on each customer is necessary in case of a regulatory audit.

Once due diligence has been carried out and the bank is fully aware of the level of risk a customer poses, they can then be onboarded (or rejected if the risk level is too high).

Although KYC is a vital part of the onboarding process, customers must also be monitored on an ongoing basis to ensure AML compliance. Due to this, when devising your KYC process, you should also put provisions in place that ensure you have an oversight of each customer’s financial transactions and activities. You must then continually check that these are in keeping with that customer’s risk profile. If not, then you may be required to file a suspicious activity report (SAR).

Anti-money laundering laws vary around the world and each country has its own regulations in place. However, the Financial Action Task Force (FATF), which is an intergovernmental organization, provides regularly updated guidance for both KYC and AML. To date, more than 190 countries follow FATF guidance.

In the United States, the main AML legal authority is the Financial Crimes Enforcement Network (FinCEN), which is a bureau within the US Department of Treasury. In the UK, the main financial services regulator is the Financial Conduct Authority.

In order to achieve KYC and AML compliance, a bank must ensure that it’s following the law in its jurisdiction. As mentioned, this is because AML laws vary on a country-by-country basis.

In the US, firms must comply with the Bank Secrecy Act 1970 and the USA Patriot Act 2001. Although these are the two key pieces of AML legislation, firms must also be familiar with other important AML regulations, including:

Money Laundering and Financial Crimes Strategy Act 1998

Suppression of the Financing of Terrorism Convention Implementation Act 2002

Intelligence Reform and Terrorism Prevention Act 2004

Meanwhile, in Europe, KYC and AML are governed by the AMLD regulations. Unsurprisingly, the UK’s AML regulations are similar to Europe’s. The relevant laws in the UK include the Proceeds of Crime Act 2002, the Terrorism Act 2000, and the Money Laundering, Terrorist Financing and Transfer of Funds 2017.

While the UK left the EU on January 31, 2020, it also remains committed to transposing the AML/CFT standards set out in the EU’s 5th and 6th anti-money laundering directives (AMLD).

What are some examples of money laundering?

Money laundering is a serious financial crime that involves attempting to make money generated from criminal activities appear legitimate.

Criminals will use a variety of techniques when attempting to launder money, including:

Using a legitimate, cash-based business that is owned by a criminal organization

Smurfing (breaking up large chunks of cash to avoid detection)

Using cash smugglers or mules to take cash across a border and conceal it in a foreign account

Investing in commodities that can be moved to other jurisdictions

Investing in and selling valuable assets such as real estate, cars, and boats

To help make sure your organization is compliant and has the correct risk management strategies in place, we’ve put together the following pieces of KYC guidance, which can be used as a KYC checklist.

Ensure customer risk profiles fit with your policies

Accurately assessing the level of risk a customer poses is a cornerstone of effective KYC. To do this, you need to understand everything you can about the identity of your customer. Due to this, you should check their:

Whether the customer appears on any sanctions lists, blacklists, or politically exposed persons lists

Using this information, you can build an overview of the risk profile of the client and establish whether they would be an acceptable fit for your business.

To help fully and accurately establish the level of risk a customer poses, you must access third-party databases, such as government databases, the database of a financial institution, or a UBO database. This will help you build a rounded view of the client and can be used to verify the information they’ve provided.

Establish the form of due diligence required

Once you’ve gathered and analyzed the data provided by the client and checked this information against third-party databases, you will have a good understanding of the level of CDD required. Remember, your options are:

The higher the level of risk the customer poses, the more stringent your due diligence checks should be. Any customer that appears on a watchlist should be subjected to enhanced due diligence checks.

Now you know the exact level of risk a customer poses and can make a decision about whether they can be onboarded.

Once this decision has been made, you must keep a copy of all the CDD records you created during the due diligence process. These can be used to show regulators that your business is doing everything it can to reduce the risk of money laundering, in case there’s an audit or investigation.

The record should show the trail of research you carried out and the reasons why you took the decisions you did. It should then be secured safely and in a way that’s compliant with record-keeping regulations, such as GDPR in the EU.

Set procedures in place for ongoing monitoring

Finally, you must remember that KYC is part of an effective AML strategy, which does not end when the customer has opened an account. Due to this, you must put procedures in place for ongoing monitoring. These should allow you to monitor account activities and unusual transactions. Plus, you should also continue to monitor sanctions lists and watchlists, in case the customer’s risk profile changes.

Follow these KYC process steps and you’ll gain a deeper understanding of your customers, and ensure that you’re continually meeting regulatory requirements.

Here at Veriff, we’ve developed a class-leading AML and KYC compliance solution that can help you show regulators that you take financial crime and compliance seriously.

Firstly, our solution helps you confirm the identity of your customer. Thanks to accurate and automated decision-making, it has never been easier to verify a customer’s identity. All they need to do is provide some basic information, a photo of their government-issued document, and a quick selfie. This process immediately stops fraudsters from attempting to access your services.

Once a customer’s identity has been verified, our solution then screens that customer against politically exposed persons and sanctions watchlists, which are updated in real-time. It also checks for adverse information and negative media, which may reveal predicate offences.

With all this information, a decision regarding onboarding can then be made. But, here at Veriff, we understand that political and regulatory environments change very quickly. Thankfully, with the help of real-time data, you can continually screen your customer lists and receive ongoing monitoring of PEP watchlists, global sanctions lists, and adverse media. You’ll also be notified if something changes with any of your existing or previously onboarded customers.

Interested in hearing more about how our AML and KYC compliance solution can help your business? Talk to our KYC experts today.

To help provide you with even more KYC guidance, below we’ve answered a number of popular customer questions about KYC and AML.

KYC stands for know your customer. It’s a mandatory process that involves identifying and verifying the client’s identity before they open an account. The process also involves determining the level of money laundering risk the client poses. Once the client’s identity has been verified and their risk tolerance has been calculated, they can open an account. AML laws state that they then must be monitored on an ongoing basis.

As KYC is a regulatory requirement, banks and financial institutions must follow set norms, including a:

By carrying out these processes, a bank can establish and verify the identity of the customer, accurately determine the level of risk they pose, and continually check for signs of criminal activity.

KYC is important because it protects financial institutions from being exploited by criminals who are attempting to launder money. KYC is also a legal requirement and if banks fail to understand who their customers are and the risk they pose, they will be liable for huge fines and face vast amounts of reputational damage.

What’s the difference between KYC and AML?

Our guide breaks down the fundamentals of KYC in banking and provides an actionable plan for getting started. 

What Is KYC In Banking? | Veriff.com

Our guide breaks down the fundamentals of KYC in banking and provides an actionable plan for getting started.

What is KYC in banking?

Those involved in the online gaming industry must comply with ever-changing regulatory requirements. However, as well as complying with these regulations, they must also be able to onboard customers quickly and provide a safe, secure environment for gamers. 

That said, KYC in gaming is incredibly important and cannot be overlooked. Not only does it protect the company from bad actors, but it also helps protect users and their private information. As a result, KYC in gaming makes the online gaming industry a safer place for everyone.

Companies in the online gaming industry are legally obligated to verify a user’s identity, age, location, and source of funds.

By carrying out these checks, a gaming company can stop bad actors and fraudsters from accessing their platform. Plus, they can also stop their services from being used to launder money.

As well as providing benefits for businesses, KYC in gaming also provides benefits for customers, too. Much like how a reputable company must provide its users with fair games and a secure gaming environment, these companies must also show their users that their personal information is being handled appropriately and then safeguarded. Due to this, companies must demonstrate to customers that their processes aim to:

Protect both the company and its users from bad actors and fraudsters

Comply with the latest global regulations

Deliver a seamless, trustworthy, and user-friendly experience

Mistakes that could be avoided with KYC for gaming industries

Online gaming providers, online casinos, and online gambling platforms deal with a high number of financial transactions on a daily basis. Due to this, any business in this space is targeted by money launderers.

In this regard, online gaming businesses must be aware that they are particularly susceptible to money laundering because they operate entirely online. This means that, without putting proper onboarding, customer monitoring, and KYC processes in place, high-risk customers can set up an account and play on a platform.

As a result, when these businesses fail to put adequate KYC for gaming processes in place, criminals find it easy to exploit their services. For example, between 2005 and 2008, The Corozzo Network ran illegal gambling and loan-sharking services through four online gambling sites, laundering more than $10 million in the process. They achieved this by deliberately losing games and then claiming ‘clean’ prize money.

As technology advances, the challenges faced by online gaming providers will only mount further. This is because technology is currently enabling criminal actors to create schemes that are increasingly complex and difficult to spot. For example, thanks to the introduction of virtual credit cards, prepaid mobile credit, and alternative payment gateways like PayPal, micro-laundering is now easier than ever. It is also becoming increasingly difficult to spot. If companies do not respond to these ever-evolving challenges, then they may become vulnerable to bad actors.

How digital KYC can help the gaming industry

Essentially, processes for KYC in gaming act as protective measures for online gaming providers. This is because, by helping a business identify its customers, verify the identity of the individual involved, and assess the level of risk each customer poses, KYC checks can identify bad risk actors and high-risk users.

Following this, these users can be flagged to authorities, monitored on a continuous basis, or banned entirely. This means that, by introducing strict KYC checks, online gaming and gambling companies can mitigate the risk of becoming vehicles for money laundering. This is because high-risk individuals are flagged before they’re given access to the service.

On top of this, robust digital KYC processes can also help businesses in the industry avoid large fines and reputational damage. If it’s discovered that a business has been used to launder money, then regulators have the power to administer huge fines. Previous examples have run into the tens of millions of dollars. On top of this, because customers think their money and information isn’t safe, they leave the business and take their custom elsewhere. Often, the business then does not recover from this level of financial and reputational damage.

How Veriff supports the safety of online gaming with KYC

Our gaming identity verification tool can help you welcome honest players from across the world. With an unprecedented document database and a frictionless user experience, Veriff helps you sign up players quickly and conveniently.

With the help of our tool, you can conquer new markets, keep regulators happy, and onboard new players quickly. As well as ensuring KYC compliance and fraud prevention, you can also build trust with your customers and ensure that honest players find it easy to access your service.

With the help of device and network analytics, automated ID review, biometric authentication, and liveness checks, you can lock out fraudsters. But because the identity verification process is secure and simple, you’ll also have no problem assisting new players and showing them that their money and data are safe.

Speak with the KYC compliance experts at Veriff

Interested in learning more about how our gaming identity verification tool can help your business? Get in touch with our KYC compliance experts today. We’d love to explain more about KYC in gaming and outline how our solutions can safeguard your business and its customers.

As well as providing benefits for businesses, KYC in gaming also provides benefits for customers, too. Much like how a reputable company must provide its users with fair games and a secure gaming environment, these companies must also show their users that their personal information is being handled appropriately and then safeguarded.

A blog about KYC in gaming, including why KYC in gaming is important, innovations in KYC for gaming businesses, and the issues that occur when KYC in gaming isn't effective.

KYC in gaming

Make it easy for real people to become your customers

Cryptocurrencies are disrupting the world of finance. However, because cryptocurrencies are cryptographically secured on their blockchains, transactions between users are generally anonymous and take place in an instant. Due to this, crypto transactions provide opportunities for criminals who are looking to evade conventional AML/CFT controls. 

Global regulators are now paying greater attention than ever to crypto. For example, in 2019, the SEC, FinCEN and CFTC classified crypto exchanges as money service businesses (MSBs). This meant that these businesses became subject to know your customer (KYC) and anti-money laundering (AML) rules under the Bank Secrecy Act of 1970.

Due to this, before any customer opens an account on a cryptocurrency exchange, they’re now asked to go through a KYC process. This crypto KYC process involves the exchange verifying your identity and proving that you are who you’re claiming to be. 

By confirming the identity of a customer, KYC in crypto aims to prevent illegal activities such as money laundering, terrorist financing, and tax evasion. 

Some exchanges may allow a customer to create an account before they go through the crypto KYC process, but these accounts are usually highly restricted until the identity verification process is complete. For example, many exchanges won’t allow a customer to actually purchase cryptocurrency or withdraw funds until their identity has been verified. Others will place a limit on deposits.

Every crypto exchange will handle KYC slightly differently. However, generally speaking, during the KYC process, you will need to provide the cryptocurrency exchange with your:

Following this, the crypto exchange will ask you for a photo of a valid government-issued ID card, such as a driver’s license or a passport. They will then use this information to verify your identity. When your identity is successfully verified, they will provide you with access to their services.

In some instances, a cryptocurrency exchange will go through an enhanced customer due diligence process. In these instances, you may also be asked to provide them with a selfie and some additional information. Financial Action Task Force (FATF) recommendations suggest that crypto exchanges should adopt a risk-based approach to crypto KYC compliance. This means that low-risk customers will face simpler measures, while high-risk customers will have to meet more intensive crypto KYC compliance measures.

In addition, FATF guidelines also suggest that crypto exchanges should monitor their customers on an ongoing basis. They should also: 

Screen customers to make sure they’re not subject to international sanctions 

Ensure they’re not a politically exposed person (PEP)

KYC is a requirement you’ll encounter on almost all centralized crypto exchanges. That said, it is still possible for customers to purchase crypto without going through a crypto KYC process. However, these methods are far more complicated and much riskier.

Buyers who prefer to stay anonymous can buy cryptocurrency using decentralized exchanges and bitcoin ATMs. Although decentralized exchanges do have security measures in place that are designed to prevent fraud, there’s still a possibility that the customer will be scammed. On top of this, decentralized exchanges tend to be less user-friendly than quality centralized exchanges and they cost users more in transaction fees.

For this reason, even though buyers do have options in place if they wish to stay anonymous, it’s far better for legitimate buyers to go through the crypto KYC process with a regulated exchange. This is particularly the case because the process can be completed incredibly quickly.

Does KYC affect anonymity and decentralization?

By its very nature, the decentralized economy is prone to problems regarding KYC. After all, decentralized services are designed to allow customers to remain anonymous and keep their personal information private from any central authority. Due to this, many crypto firms cannot identify who their customers are.

However, regulators have become increasingly unhappy with this situation and, although it affects anonymity, even the most reluctant crypto exchanges have been compelled to introduce steadily more stringent crypto KYC measures after facing pressure from regulators.  

That said, it’s important to point out that KYC requirements do not apply to decentralized exchanges (DEXs). This includes all companies that organize trades through smart contracts instead of a central trading desk.

These institutions are not subject to current regulations because they are not considered to be financial intermediaries or counterparties. This is because their users trade directly with one another by leveraging the infrastructure provided by the DEX.

However, although DEXs are not currently bound by KYC requirements, regulators around the world are continually altering the laws and regulations that govern crypto KYC. As a result, DEXs may be regulated in the future.

What are the benefits and why does crypto need KYC?

The KYC process is a foundation of AML/CFT compliance regulations. These regulations require financial institutions to identify their customers and understand their relationship with them.

KYC is important in financial contexts because criminals employ a range of strategies to evade AML/CFT controls. Thankfully, by building a rich and accurate risk profile of each customer, a crypto exchange can easily identify users that are misusing their services, and prevent crimes like money laundering and terrorism financing.

KYC helps to form trust and transparency with clients

Verifying the identity of a user can help improve transparency and build customer trust. After all, if a customer is confident that your cryptocurrency exchange is taking proactive and precautionary measures to protect their accounts, they’re more likely to continue using your service.

Since 2016, cryptocurrency fraud has been on the rise. In fact, Forbes suggests that there were 80,000 cases of cryptocurrency fraud in the US alone in 2020. This represents a 24,000% increase on the same figure from 2016. Further research has also suggested that illicit cryptocurrency transactions totaled around $14 billion in 2021 – a rise of 79% from $7.8 billion in 2020. 

This shows exactly why regulators are so keen for cryptocurrency exchanges to implement robust identity verification and KYC procedures. With the help of these measures, not only can crypto exchanges reduce the likelihood of financial crime taking place, but they can also reduce fraudulent activity and boost market reputation.

KYC assists in the stabilization of cryptocurrency exchanges

The cryptocurrency market is known for its volatility. However, some of this volatility is fueled by anonymous transactions that are illegal in nature.

If cryptocurrency exchanges embrace KYC and customer verification methods, then the market will become more stabilized. This will increase the value of the market and will attract new customers to the space.

Robust KYC policies ensure future compliance for companies

Legal expectations surrounding KYC compliance continue to change and evolve, and many exchanges have struggled to embrace these policies. Due to this, cryptocurrency exchanges that implement effective KYC policies are ahead of the curve. This means that instead of trying to catch up, these cryptocurrency exchanges can instead focus on improving conversion rates and streamlining transactions.

Of course, these companies do still need to ensure that they continue to comply with evolving international guidelines. However, by demonstrating their KYC credentials, they can reduce their risk of legal challenges or regulatory penalties.

Let Veriff help you with seamless onboarding

At Veriff, we help make investing in crypto safe and easy. Our AML and KYC compliance solution can not only help prevent fraud, but it also provides industry-leading conversion rates.

Our crypto solution also includes a decision-making engine that can confirm a verification quickly. What’s more, our user flow gets customers through the verification process seamlessly, and 95% of customers are verified on the first try, with the average verification taking only six seconds.

On top of this, our solution also guarantees compliance and integrates within your existing system.

Interested in learning more about your crypto KYC compliance obligations, or want to discover how our solutions can help you? Speak to our compliance experts today.

We’d love to provide you with a personalized demonstration that shows you exactly how our solutions can help you stay compliant and fight fraud. 

KYC is a requirement you’ll encounter on almost all centralized crypto exchanges. That said, it is still possible for customers to purchase crypto without going through a crypto KYC process. However, these methods are far more complicated and much riskier. Read on to find out more.

Crypto

A blog about KYC in crypto, including the role of regulations, why the decentralized economy poses problems regarding KYC, and how KYC can build trust for traders operating in crypto.

What Is KYC In Crypto? | Veriff.com

What is KYC in crypto?

Anti-money laundering (AML) and know your customer (KYC) requirements are unique for each business. As a result, it’s vital that you design and create an identity verification process that suits your specific needs and requirements. 

To help you understand more about how the identity verification process works, we’ve created this guide. As well as discussing why verification is important, we’ve also outlined how our identity verification platform works and the things you need to consider when building your own identity verification process.

Generally speaking, the identity verification process ensures two things. In the first instance, it checks that the person who is attempting to access your services is real. Secondly, it confirms that the person who is attempting to access your services is exactly who they say they are.

By verifying the identity of a user, you can prevent fraud. You can also prevent someone with a false identity or stolen identity from accessing your services.

In the online world, there are several different ways to verify an identity. Of course, unlike in a shop, there’s no physical interaction between the service provider and the client. But, by using an online identity verification solution like ours, you can verify IDs in seconds.

An ID is real and has not been tampered with

The information on the ID matches the individual in question

The person uploading the ID is also the person on the ID

A user is not prohibited from using your services because they’ve been sanctioned

Here at Veriff, our online identity verification solution provides a thorough verification process and handles compliance on your behalf. By leaving identity verification to us, you can focus on doing what you do best.

Our solution provides an end-to-end verification service. This is accomplished in three simple steps:

During this stage of the process, user data is gathered for analysis during the verification sessions. The information gathered from the user will depend on the document they provide for verification purposes (usually a passport, ID card or driving license).

Although our identity verification solution makes this part of the process look simple, a lot of work happens behind the scenes to make sure that verifications are accurate and don’t negatively impact your conversion rates. This background work includes browser and device analytics, optional background video checks, and other data cross-checking methods.

Allow you to select between 40 languages and dialects

Verify 10,000+ government-issued IDs from 190 countries

Automatically collect the category of driver’s license as an additional data point, if required

Help you customize web and mobile flows so they align with your branding

Include the option for background video recording, which allows us to conduct advanced fraud prevention checks

Use machine learning technology to assess client sessions in real-time and guide users during photo-taking steps

During this stage of the verification process, the data that was collected from the customer is analyzed. We understand that a one-size-fits-all solution does not work for verification. This is why we provide a number of optional features that make it possible to scale fraud prevention up or down.

Our verification engine can be configured to enable the checks you need. Options include:

Once a customer has started the verification process, live session statuses and results can be viewed in Veriff Station. As well as viewing session statuses, you can also manage multiple integrations and automate the flow of information with webhooks in one place. On top of this, you can also restrict data permissions to keep your user data secure.

Here at Veriff, we understand that the identity verification process depends on the needs of the business. While an online retailer may wish to simply verify the age of a shopper who wishes to purchase alcohol, a crypto business needs to comply with stringent AML and KYC legislation.

For this reason, the identity verification process you create must be bespoke to your requirements. On top of this, it must also be simple for the user to navigate. Due to this, when creating your process, you should consider the following points and steps.

Generally speaking, the longer the conversion process, the more customers will drop out of the flow. Due to this, the identity verification process you create should be as short as possible and contain only a few steps. 

After directing your customer to your flow, you should ask them to take either one or two photos of the ID they’ve selected. At this stage, you should be clear about the photos you need from them, the quality of the photos you require, and the information that needs to be visible. If necessary, you can also ask them to input some basic data and then scan their document. This is a process that works well for biometric passports.

Finally, ask them to snap a selfie and confirm everything is fine. Once everything is confirmed, your identity verification platform can complete the verification and send the customer back to you. 

When building your own verification process, you need to keep an eye on conversion rates.

Although best practice for converting customers is to shorten the conversion funnel (as we mentioned above), regulatory requirements such as KYC compliance laws or the European PSD2 directive may require extra steps to be added to the process.

Due to this, you need to be smart about the way you guide your users through verification. By pushing certain steps to the background, you can reduce the amount of work your customer has to do while still meeting compliance laws.

One example of how this can be achieved is with live background video. While the user completes their steps, live background video handles liveness checks and gets multiple angles of the photographed ID. This means you can avoid asking the user for multiple photos.

When asking customers to be transparent about who they are, you need to speak in a language they understand. Due to this, your verification process needs to be localized.

Offering consistent and customizable language support is crucial to keep conversions high. It also helps make sure that your users know exactly what’s expected of them during verification.

Users want to know that their information is safe and secure. This is understandable because they’re providing you with photos of their government-issued document.

As a result, reassuring your user goes well beyond writing supportive copy. To encourage as many users as possible to go through the verification process, you should also create visual clues that will establish trust and authority. These can include GDPR badges and videos that show your employees going through the steps.

Other subtle ways to establish trust include maintaining your visual brand throughout the process. To help with this, we offer SDK customization options that can help stop customers from feeling like they’re being redirected to a third-party site.

Finally, once you’ve created your own identity verification process, you should actively help guide your customers through it. By providing useful and helpful tips to your customers, you’ll boost your conversions and make the process straightforward.

As you can see, our identity verification process makes verifying IDs and ensuring compliance simple. Plus, you can also tailor your process to suit your industry and brand.

If you’d like to learn more about how we can create an identity verification process for your business, get in touch with us today and book a personalized demo.  

KYC Guides

Latest Resources

The KYC pain points gaming companies must overcome

The Know Your Customer challenges neobanks must overcome

Why a world class KYC strategy matters to gaming customers

Why a killer KYC strategy matters to neobank customers

Troubleshooting KYC: Optimizing process, powering growth, and improving user experience

What is KYC in banking?

KYC in gaming

What is KYC in crypto?

How to create an identity verification process

KYC & due diligence in AML compliance: what you need to know

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KYC Guides

Latest Resources

The KYC pain points gaming companies must overcome

The Know Your Customer challenges neobanks must overcome

Why a world class KYC strategy matters to gaming customers

Why a killer KYC strategy matters to neobank customers

Troubleshooting KYC: Optimizing process, powering growth, and improving user experience

What is KYC in banking?

KYC in gaming

What is KYC in crypto?

How to create an identity verification process

KYC & due diligence in AML compliance: what you need to know

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