KYC: Identity verification in a few minutes

A collaboration with Alice Biometrics for bank and insurance customers to improve their digital onboarding through biometric identity verification. How to transform time-consuming registration processes into something easy, secure and user-friendly? Let's go with this post!

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Secure remote verification of users’ identities is a challenge for companies due to the increase in fraudulent accounts. In 2022, there was a 15% increase in the number of such accounts, which were created to carry out a variety of identity scams, from impersonating someone else to creating a synthetic identity to get away with a crime.

This has increased the level of regulation, which is getting stricter and stricter, leading to higher abandonment rates in bank account opening processes or at any other point in the customer’s life cycle that requires identity verification.

According to Statista, financial institutions in the US have a 63% churn rate in the KYC (Know Your Customer) process, resulting in a loss of customers. So… How do you combine identity verification that minimizes fraud while improving conversion rates in a digital product?

From human error to the accuracy of a system trained with Machine Learning

Can you imagine having to manually check 100% of your registrations? Spending several minutes per user in manual reviews and subject to human error… conversion result: <10%, since every second that passes is a second that your potential customer has to abandon the process. However, today there are solutions that combine security and optimized user experience that at the same time help to increase the conversion of your digital product, such as Alice Biometrics. How is this achieved?

With a smart user experience

An interface is needed that guides the user, in real time, and asks for as little interaction as possible during the capture of identity proofs. 95% of cases complete the process the first time.

Can the user experience be improved with enrichment? Absolutely!

With a fast and automatic AI-based decision making system

98% of requests are automatically checked in less than 1 second. Allowing to operate at large scale, decreasing acquisition costs and increasing customer value.

This is because Alice is based on a machine learning engine built in-house (which has won several international competitions such as the CVPR and the IJCB).

With anti-poofing technology and passive liveness testing for fraud reduction

Alice combines speed of decision with accuracy in fraud detection, preventing 99% of attempts. Thanks to the latest anti-spoofing technology we are able to discover print and screen attacks, we are able to detect that behind the screen there is a real person, without the need to ask for user interaction, such as moving the head up and down, winking an eye or other series of interactions that confuse the user, lower the conversion and give clues to the fraudster about what he has to do to hack the system.

Recently, the National Cryptologic Center has recognized this company as the only tool that complies, for all types of platforms (web and mobile), with the security requirements demanded in the ALTA category.

With an easy integration

Alice facilitates its interoperability and integration with other systems through API or using the SDK. It is accompanied by a control panel to track and implement business intelligence in the validations.

Verse and Paella B. Festival: a case study

Verse, an app for making shared payments from the cell phone, has a large part of its users in an age range whose main characteristic is the demand for immediacy.

Recently, they are collaborating with the Alicante music festival, Paellas B.Live. Verse needed a solution that could validate the buyer and attendee to the festival in the fastest and easiest way, while reducing the creation of fake profiles, fraudulent accounts or identity theft.

Below we tell you how, from the Instagram profile and in less than 2 minutes, you can complete the mobile registration, including registration, ticket purchase and user identification.

In a first step, from the Instagram account, you can download the Verse application, then open it and create a profile with the cell phone number. Once this is done, it is time to verify the user’s identity.

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ID document validation to increase conversion

You are first asked to show your ID card to the cell phone’s rear camera. There is no need to type in the information, take a photo or email it to a specific address, which would delay the validation process. Instantly, the OCR recognition system detects the type of document and extracts the information from it. At the same time it performs numerous security checks.

Selfie screenshot

In the second step, the front camera is opened and the user is asked to place his or her face inside the central oval. No need to take photos from different angles, or do some kind of active life test (such as shaking the head, smiling, winking, etc.). This tends to decrease the conversion rate, as many times the user has to make several attempts and ends up giving up.

At this point, the facial recognition system works thoroughly to, on the one hand, recognize that there is a real person behind the camera, and on the other hand, verify that he is who he says he is, and his facial features match those of the ID document.

This system also avoids conversion problems when using a low-resolution or manipulated scanned photo.

“Thanks to Alice we are able to have onboarding with as little friction as possible while strengthening the security of the Verse community.”

Naike Sainz, COO of Verse

And we’re done! The identity verification it’s a process that takes less than 1 minute to verify your customer.

Implementing a fast and secure identity verification experience today is perfectly possible

Each company has a specific casuistry, but with a common denominator, the identity verification process has to be fast, simple and secure. Helping to maximize the conversion rate, both in the registration of new customers, and every time you need to verify the identity of your users or employees.

If you want to know how Alice can help you, do not hesitate to contact them.

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