ID verification

ID Verification – Tossing the Tables Against Fraud in FinTech Firms 

AI-powered ID verification is enabling FinTech companies to comply with evolving regulations and ensure the secure integration of digital banking technologies.

The introduction of advanced banking technologies is enabling financial institutions to improve customer experience and outperform in the competitive market. Along with this advancement, they are exposing themselves to increased regulatory requirements. It becomes challenging to stay in line with legal standards as they are not in accordance with the new financial technologies. Similarly, the evolving regulatory landscape is further making compliance complicated. 

FinTechs continue to bring adverse advancements within the finance industry by benefiting institutions and customers alike. However, legal AML/CFT standards become more stringent alongside these innovative measures. FinTech companies require ID verification solutions to stay put with Know Your Customer (KYC) regulations. This blog covers ways AI-powered identity authentication benefits and enables these institutions to ensure compliance. 

FinTech Companies and the Use of Automated Identity Verification Services 

UK-based City AM, in its report for February 2022, highlighted that bosses at over 70 giant FinTech firms are forcing the government for pacing up their efforts to overhaul legal standards. The purpose of these efforts is to keep the growth of financial technologies stagnant while ensuring safe banking operations. 

Despite the regulatory challenges, legal bodies are enforcing AML and KYC laws as the foremost requirements. Furthermore, FinTech companies are liable to inculcate identity theft protection mechanisms in order to mitigate fraudsters’ access. These institutions are subject to ID verification standards for safeguarding the financial market, customers, and their operations from criminal threats. 

AI-powered identity verification services streamline FinTech companies’ operations by offering a variety of advanced IDV checks. They are a blend of robust machine learning technologies that drive accuracy and automated onboarding processes which are sure to pace up customer retention.  In return, the collective efforts by AI-powered identity verification solutions enable FinTech companies to meet the growing challenge of compliance.

The use of automated biometric identity verification systems enables FinTech companies to add an extra layer of security. They can ensure the presence of customers at the time of onboarding. Furthermore, with facial, voice, retina/iris, and other biological features analysis there will be less room for criminals. 

Use Cases of AI-powered IDV Services in FinTech Firms

The use of AI-powered ID verification solutions is taking many forms and benefiting FinTech companies in adverse ways. From automating customer onboarding and instant information authentication to efficient fraud prevention, IDV services are taking over every financial operation. As per regulatory requirements set by the Financial Action Task Force (FATF) and Financial Conduct Authority (FCA) submitting on-time Suspicious Activity Reports (SARs) is a liability. 

Advanced identity verification services offer ongoing monitoring and accurate results dispatching which further aid in suspiciousness detection. This way, FinTech companies can stay put with legal requirements while fully incorporating financial technologies. Moving further, AI-powered synthetic identity fraud prevention solutions are eliminating the need for physically visiting banks or other institutions. 

Customers can simply register accounts, provide Personally Identifiable Information (PII), upload supporting documents, scan facial features, and avail of digital financial services. AI-powered ID verification empowers FinTech companies to limit hassle, complex authenticity checks, and time-taking onboarding. Further use cases of artificial intelligence involve:

Ongoing Transaction Monitoring

With the advent of digital banking, customers are preferring remote transactions instead of physically visiting financial institutions. Furthermore, the use of mobile accounts and wallets is making online payments easier and riskier at the same time. While customers can use their applications to transfer funds, criminals are using these services to launder high sums of money. Similarly, hacking mobile accounts and committing identity theft is another fraud trend surfacing in FinTech companies. 

Integrating AI-powered ID verification solutions can help institutions counter criminal threats. With liveness detection, real-time presence, facial recognition, and ongoing monitoring, FinTech companies can stay ahead of fraudsters.

Video KYC Verification

AI-powered identity authentication solutions offer video-based customer verification. This is the advanced form of identification that is readily replacing old traditional IDV methods. The process involves asking users to upload a real-time video prior to digital onboarding. Machine learning algorithms then analyze it for liveness detection. 

Digital ID verification tools extract biometric features and cross-match them with documents. Moving on, by deploying gesture analysis, surrounding checks, and movement comparison, FinTech companies can ensure they are facilitating legit customers. 


FinTech ID verification regulatory landscape is evolving concerning the spiking criminal threats, making compliance even more complex. While these standards are set to ensure secure financial dealings, companies are experiencing a backlash in meeting them. Therefore, FinTech firms need to bring in AI-powered identity verification services to streamline their operations. Ultimately, financial institutions can ensure improved customer experience, ensure KYC/AML compliance, and mark more tremendous growth. 

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