Germany-based IDnow Helps Expedite Identity-Verification Processes
- Written by TechXO Team
- Category: RegTech
- Hits: 101
IDnow, a Germany-based company specializing in secure identification methods, has developed a technology that helps speed up identity-verification processes for customers and banks alike. The company is focused on delivering its service in the financial industry, which is among the most regulated sectors globally. IDnow claims that its AI-powered platform has sufficient real-world data to give fast and reliable information to their clients, information involving their clients’ customers to onboard them quickly and confidently.
Identity management in a secure environment is one of the crucial issues that businesses are facing right now. With big competitors like IBM, Oracle, CA, Sailpoint, Okta, and OneLogin, IDnow knows that it has to differentiate itself. To do this, the company identified an untapped market potential and that is to act as a middle man in environments where physical presence is required. That means in situations where the customer is required to go to a bank or a Post Office to verify his identity, which may take a day or two, IDnow expedites this process and verifies your identity for you. The expected benefits are clear: processes to onboard customers or approve transactions that require customer identity are now faster and more efficient with this AI-powered technology. The technology can also scale to handle regulation standards such as Know Your Customer (KYC), General Data Protection Regulation (GDPR), and Anti-Money Laundering (AML).
US$20 billion ID-verification market
The whole industry, in fact, has been dubbed by management consulting company McKinsey & Company as the next US$20 billion digital market. According to the management consulting company, more customers are now moving their transactions online. This includes sensitive transactions like when a customer opens a new account or purchases a big-ticket item. For the past years, online verification delays transactions due to regulations and threats of crimes involving identity theft. Because of this, IDnow quickens and smoothens the process by combining a video chat session (using facial recognition technology) with an agent to identify the applicant. This then proceeds to document scanning and automation in Software as a Service (SaaS) model. This process is dubbed as the industry’s first combined automated and video identification platform, allowing IDnow to dominate this strategic niche in the RegTech industry.
Partnership with DocuSign
IDnow has also found a way to slide through strict regulations within single trading blocs like the EU and those that exist outside in various countries. The company’s approach is to attempt to cover all of the bases of in-person documentation and automation that includes passport detection and ID card and driver license verification, as well as hologram checks. The company also made sure that it complies with QES or Qualified Electronic Signatures rules by partnering with DocuSign, a San Francisco company that provides electronic signature technology and digital transaction management services. The partnership with DocuSign also helps in eIDAS (electronic Identification, Authentication, and trust Services) compliance rules that govern contract rules on the internet.
The technology developed by IDnow now covers around 193 countries including all passports and around 60 other documents related to security requirements. The company believes it covers almost all people in the world. With its continuous growth, the company has raised over Euros 12 million or about US$13.6 million with new offices (like the one in France) opening recently.
While the company caters primarily to the mobile-based financial technology industry, it also interests those in the automotive, crypto, insurance, and telecom companies. But because of its wide range of applications, it is inevitable for competitors to arise. In fact, this is a challenge that most European startups face. In Asia alone, a number of companies are developing facial recognition solutions. In the West, Jumio, a Silicon Valley-based company, is gaining traction.
One thing is clear: IDnow has to continue to innovate faster than its competitors or it will end up as another European company outcompeted by a Silicon Valley one.