Although financial institutions are increasingly digitalising its banking operations and encouraging customers to use online services, they continue to use paper-based processes for a customer’s identity verification. For instance, even if a customer is seeking to open a bank account or get a loan approved through the app, he/she has to make a trip to the nearest bank branch to authenticate their identity. This not just makes the process time-consuming but also inhibits the potency of a digitalised financial industry. Hence, the fintech universe needs an alternative method that provides online identity verification that is frictionless and intuitive. Offering the perfect solution—as a service—is a Germany-based fintech provider, IDnow. The company is able to digitally verify a customer’s identity using a combination of artificial intelligence (AI), machine learning, and facial recognition technologies. “By leveraging our identity-as-a-service (IDaaS), you can save money, improve customer conversion rates and streamline your onboarding process,” asserts Armin Bauer, co-founder, and CTO of IDnow.
At the core of this robust service is IDnow’s secure and flexible platform that holds the potential to verify more than 7 billion people from 193 countries in real time. The platform’s latest addition is a product called AutoIdent, which utilises AI-powered facial recognition, computer vision and fraud detection technologies to facilitate automated identification. Customers can use AutoIdent to complete an identification check quickly and conveniently from a desktop, tablet, or mobile device.
By leveraging our identity-as-a-service, you can save money, improve customer conversion rates and streamline your onboarding process
All they need to do is take a photo of their identity document (ID), and then AutoIdent’s AI algorithm compares the photo with a global ID database to determine authenticity. “Getting this feature to function correctly is a massive engineering feat, as we have to deal with lighting issues due to varying camera quality and the quirks of supporting different operating systems and devices. However, we are able to tackle all these problems with ease,” states Bauer. Further, AutoIdent meets the highest security and fraud detection requirements of European countries and is fully-compliant with all regulations and directives such as AML, eIDAS, GDPR, and PSD2.
Alternatively, IDnow offers VideoIdent, a seamless online identification solution using an agent-assisted video chat. Compliant with the data protection directives laid down by European Union authorities, VideoIdent combines AI technology with the expertise of IDnow’s highly-qualified identity specialists. “A customer only requires internet access, a computer with a webcam or a smartphone, and their valid ID to complete the procedure,” explains Bauer. Many financial institutions in Germany have opted for this method of conducting digital onboarding for their customers.
One such organisation is Commerzbank, an internationally-operating commercial bank headquartered in Germany. The bank wanted to digitally transform their banking operations to onboard new customers quickly and easily at any time, regardless of their location. Previously, Commerzbank was relying on in-branch verification and the German ‘PostIdent’ procedure. However, to achieve the bank’s goal of streamlined customer onboarding, transitioning to video ID verification was the logical step. Commerzbank, therefore, decided to partner with IDnow and within a few weeks of the collaboration, the bank’s customers were able to open a new account within minutes using video ID verification. The bank experienced an increase in conversion rates by 50 percent.
Similar to Commerzbank, many companies are choosing IDnow as a reliable partner for identity verification and eSigning solutions. Right now, with more than 250 clients onboard, IDnow is set for growth on an international scale. “We offer the comfort of absolute compliance combined with the freedom to create tailored identity verification solutions,” concludes Bauer.