11 Best Identity Verification Solutions for Better Customer Onboarding

Investing in identity verification solutions can speed up AML compliance processes. Explore the many options of the best tools in the industry with a comprehensive breakdown of their advantages and best features.
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Julia Ront, Founder and CEO of Vespia

October 16, 2024

Identity verification is essential in modern business, particularly for managing financial risk and ensuring compliance. For financial institutions and online businesses, verifying a customer's identity is crucial in preventing fraud and maintaining trust. Ultimately, effective identity verification lays the groundwork for safe and reliable onboarding.

Identity verification forms a significant part of Know Your Customer (KYC) and Know Your Business (KYB), which are procedures companies use to verify the identity of their clients, whether they are individuals or businesses, respectively. Both KYC and KYB are regulatory requirements that help businesses protect themselves from risks like fraud, money laundering, and other criminal activities.

The ID verification ecosystem has changed greatly thanks to advancements in regulatory technology, often simply called "RegTech." As the digital ecosystem continues to grow, so does the need for secure, scalable, and seamless identity verification methods. RegTech has introduced new ways to verify users, shifting from traditional, manual methods to sophisticated digital solutions.

Today, businesses have access to identity verification software and tools that make the entire process faster, more accurate, and significantly more convenient, not just for the companies involved but also for their customers.

In this article, we will take a closer look at what an identity verification solution is and how the verification process works. We will also discuss eleven great options for ID verification solutions, going over some important information about their features, pricing, and trial.

What Is an Identity Verification Solution?

An identity verification solution is essentially a modern digital take on the traditional methods of verifying who someone is. You and your customers no longer need to sift through stacks of paperwork or wait days for a single response. Today, identity verification utilizes software or services designed to streamline the verification process, allowing financial institutions to quickly and efficiently verify their customers’ identities.

These solutions not only save time but also markedly enhance the onboarding experience for customers. Imagine a situation where a new client doesn’t need to bring physical copies of documents to your office; instead, they can confirm their identity in a matter of minutes from the comfort of their home.

A reliable identity verification solution simplifies and streamlines the entire procedure, making it faster and more convenient for all parties.

How an ID Verification Solution Works

Let's now take a brief look at how a digital identity verification solution typically works.

Usually, a customer will supply some basic information in order to register or complete a transaction. This might contain a picture of their ID along with their name, address, and birthdate. The ID verification platform uses this data to perform a number of checks. To make sure that the person is who they claim to be, it sometimes even uses biometric information, such as a fingerprint scan or facial recognition, to confirm the authenticity of the submitted documents and check for any red flags.

A secure digital ID check not only helps to prevent fraud but also gives customers peace of mind as they are assured about the safe handling of their sensitive personal information.

How Digitalizing the Identity Verification Process Has Helped

With digitalization, the business identity verification process has become:

  • Faster: Speed is one of the most important advantages of digital identity verification. With traditional methods, verifying a customer's identity could take days or even weeks. Now, digital solutions can often complete this process in minutes. Customers appreciate the quick turnaround, and businesses can onboard clients faster.
  • Automated: Many identity verification tasks that used to be manual are now automated. This means fewer human errors and a more streamlined process. Automation helps businesses save time and resources, allowing team members to focus on other critical tasks.
  • More Convenient: Digital solutions offer new levels of convenience. No matter where they’re located, customers can easily verify their identity. With just a few clicks, customers can schedule appointments and avoid waiting in lines.
  • Secure: Security is a non-negotiable in the modern-day digital landscape. Advanced identity verification solutions employ cutting-edge encryption and security protocols to protect sensitive information. This gives both businesses and customers the relief that their data is safe.
  • More Accurate and Reliable: Digital verification methods are typically more accurate than traditional ones. With access to vast databases and advanced algorithms, these solutions can quickly identify discrepancies and potential fraud, ensuring a more reliable verification process.
  • More Extensive: Thanks to globalization, businesses can now access extensive global databases. This means they can verify identities not just locally but also internationally, making it easier to expand their reach and serve a broader customer base.
  • Scalable: As businesses grow, their identity verification needs can change dramatically. Thanks to the scalability that many digital platforms offer, businesses can easily adjust their verification processes as their customer base expands or changes.
  • Cheaper: Last but not least, there’s the question of cost. Digital identity verification can significantly reduce operational costs. By minimizing manual work and leveraging technology, businesses can save money while also improving efficiency.

11 Popular Identity Verification Solutions

Name Best For Pricing Options Free Trial Available?
NameScan Comprehensive AML checks Starts from $50 for 50 credits Yes
IDnow Video verification Undisclosed No
DocuSign Identify Integrated e-signatures Undisclosed No
Onfido AI-powered verification Undisclosed Yes
Middesk Business verification Pay-per-use model Yes
Jumio Advanced biometrics Undisclosed Yes
Fractal ID Web3 and blockchain platforms Undisclosed Yes
MemberCheck AML screening Undisclosed Yes
Mitek Systems Document verification Undisclosed No
IDVerse All-in-one solution Undisclosed Yes
Bureau ID Digital footprint analysis Undisclosed Yes

1. NameScan

NameScan is a leading solution recognized for its robust Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance checks, helping financial institutions navigate the complex regulatory landscape and minimize risks. NameScan's primary function is to provide comprehensive screening against a variety of global sanctions lists, politically exposed persons (PEP) lists, and adverse media checks. This thorough approach helps businesses not only comply with regulations but also protect themselves from the potential reputational damage associated with engaging with high-risk individuals or entities.

One of the standout features of NameScan is its ability to integrate seamlessly with existing CRM and compliance software. It allows organizations to streamline their onboarding processes and ensure that compliance checks are part of the standard customer engagement workflow. However, while NameScan is feature-rich, the platform can present a steep learning curve for new users. Comprehensive training and support are available, but organizations must be prepared to invest time in getting their teams well-acquainted with the platform.

NameScan users must purchase credits before using the service. Each ID check credit costs a dollar, and prices can go lower as volume increases. The platform also provides a very limited free trial, allowing potential users to experience its capabilities before 100% commitment.

2. IDnow

IDnow specializes in video identification services for secure remote identity verification, gaining traction in sectors like banking and telecommunications. The platform's video verification offers a user-friendly experience, utilizing cutting-edge technology for real-time verification, allowing customers to verify their identities live through high-quality video calls with verification and security experts. The platform also supports multiple languages, making it a versatile option for businesses operating in diverse markets.

The robust integration capabilities allow IDnow to easily connect with existing systems via an API, enabling organizations to incorporate video verification into their current workflows without significant disruptions. However, a drawback of IDnow's service is that video verification can sometimes take longer compared to fully automated processes, which may not be ideal for businesses looking for instantaneous identity confirmation.

IDnow’s website does not mention any details about pricing or free trial. You will have to reach out to their sales team for further steps.

3. Docusign Identify

Docusign Identify enhances the security of electronic agreements by seamlessly integrating identity verification into the signing process, making it ideal for businesses needing reliable identity checks. It is particularly useful for businesses that require a reliable way to verify identities as part of their contractual processes. The platform combines document verification with e-signatures, offering customizable workflows and compliance features that cater to a wide range of industries.

One of the major benefits of Docusign Identify is its seamless integration with other Docusign services as well as third-party software solutions. This makes it an attractive choice for organizations already utilizing Docusign for their electronic signature needs, allowing them to enhance their security measures without overhauling their existing systems.

4. Onfido

Onfido leverages AI for fast, secure identity verification. The platform's capabilities extend beyond simple document verification; it includes advanced biometric identification checks and fraud detection capabilities, making it a comprehensive solution for businesses needing to ensure the authenticity of their customers. Onfido's AI-driven approach allows it to analyze identity documents quickly, verifying their validity in real-time while detecting potential fraud.

Users also get access to robust yet easy integrations with various platforms through APIs. This allows businesses to incorporate identity verification into their existing workflows with minimal friction. However, one potential drawback is that Onfido's pricing can be on the higher side, particularly for smaller businesses that may find it challenging to justify the costs associated with advanced features that they might not even need.

Pricing info is not available publicly, but there is a trial available for those wanting to do a test run before making a long-term commitment.

5. Middesk

Middesk specializes in business identity verification, providing critical insights for B2B transactions. This platform is particularly useful for organizations looking to verify the legitimacy of other businesses during the onboarding process.

Middesk grants access to extensive business data for KYC checks, facilitating real-time monitoring and risk assessment. This feature helps companies mitigate potential risks associated with partnering with new businesses.

The integration process with Middesk is straightforward, as it allows for easy compatibility with existing CRM systems. However, it's important to note that Middesk is primarily focused on business verification, which means it may not be suitable for organizations looking to verify individual identities.

Middesk operates on a pay-per-use pricing model for smaller requirements. Custom plans start from $1,000 per month. Additionally, a trial is available, too.

6. Jumio

Jumio is a well-reputed name in the identity verification industry, offering a range of solutions with a strong emphasis on biometrics. The platform provides AI-driven biometric authentication alongside document verification and AML checks, making it a comprehensive option for businesses that need to authenticate the identity of their potential customers. The tech offered by Jumio is designed to deliver high accuracy rates, helping organizations with effective fraud prevention.

The integration capabilities are quite flexible, featuring an API that allows for straightforward connection with various platforms. However, one potential downside is that Jumio can be on the pricier side for smaller businesses, which may be a consideration for those with tighter budgets.

Pricing details are available upon request. Jumio offers a trial to those interested in exploring the platform before subscribing.

7. Fractal ID

Fractal ID focuses on providing flexible integrations for identity verification, emphasizing its ability to adapt to various business needs. Focusing heavily on web3 and blockchain technology, the platform offers features like risk assessment and compliance checks that are targeted at decentralized platforms. Fractal ID's approach allows businesses to leverage existing data for identity verification, enhancing the overall accuracy and reliability of the process while eliminating repetitiveness.

Integrating Fractal ID into existing systems is relatively straightforward, thanks to its easy API connections. However, the customization options available can sometimes be complex, which may pose a challenge for some users unfamiliar with technical integration processes.

Pricing is based on the specific requirements of each business. Potential clients can sign up for a trial period, allowing them to assess the platform’s capabilities and see how well it aligns with their operational needs.

8. MemberCheck

Known for providing robust AML tools that are crucial for compliance purposes, MemberCheck’s platform is equipped with comprehensive sanctions and PEP screening capabilities. This is complemented by real-time alerts to notify businesses of potential risks. This functionality is particularly valuable for organizations operating in heavily regulated industries where compliance is paramount.

MemberCheck integrates well with various compliance platforms via API, allowing organizations to enhance their existing workflows with minimal disruption. However, it's important to note that the platform is primarily focused on AML screening, meaning it offers fewer options for individual verification compared to some other solutions.

The pricing details for MemberCheck’s platform are not publicly available, but users get a two-week trial to take the platform on a test drive.

9. Mitek Systems

Mitek Systems has established itself as a reliable name in the domain of document verification technology. The platform specializes in image capture and verification, employing advanced fraud detection mechanisms to enhance security. Mitek Systems is particularly well-suited for mobile applications, allowing businesses to verify identities quickly and efficiently through smartphone interfaces.

The platform is compatible with many business applications through easily implementable API connections. However, a potential drawback is that Mitek primarily focuses on document verification rather than providing a comprehensive identity check solution, which may limit its usability for some organizations.

Mitek Systems hasn’t publicly disclosed pricing info on its website. There is no free trial available either.

10. IDVerse

IDVerse presents itself as an all-in-one identity verification platform that caters to various industries. The platform offers multi-factor authentication, document verification, and real-time identity checks, making it a comprehensive solution for businesses needing thorough identity verification processes. IDVerse's versatility allows organizations to adapt the platform to meet their specific needs effectively.

Integration with IDVerse is facilitated through their API, making it easy for businesses to incorporate the platform into existing systems. However, the comprehensive feature set might be too much to handle for smaller businesses that may only require basic verification processes.

The pricing information for IDVerse is available upon request. The platform does provide a trial option, though.

11. Bureau ID

As part of its identity verification offerings, Bureau ID provides in-depth insights into digital behavior and footprint analysis, device intelligence, document checks, and biometrics, helping organizations assess the legitimacy of potential customers. Bureau ID's approach to verification focuses on leveraging digital data to enhance the overall accuracy of identity checks.

Integrating Bureau ID into existing platforms is made easy through API connections, allowing organizations to streamline their verification processes. Another implementation option is via the SDKs that are available on the website.

For those considering Bureau, a trial is available, providing an opportunity to explore the platform.

How to Choose an Identity Verification Solution for Your Firm

Selecting the right identity verification tools for your organization can be a tough task, especially given the extensive range of options available on the market today. That’s why we’ve compiled a list of eight key factors that you should consider before making a decision.

Features

Every identity verification solution comes with a different range of functionalities, from basic document verification to advanced biometric checks to real-time fraud detection. Make sure to compare the feature sets for all the options you’re considering before you decide which platform to go for.

Technology Implemented

Next, consider the technology implemented in the solution. A robust identity verification platform should leverage modern technologies, such as artificial intelligence and machine learning, to enhance accuracy and speed. Look for solutions that utilize these technologies to automate processes and reduce the chances of human error. Also, make sure you understand how the technology used in each platform aligns with any of your existing systems into which you’re planning to integrate the new solution.

Requirements and Goals

What are your business requirements and goals? Think about your business type, industry regulations, and the volume of identity verification checks you need to process, for starters. Also, make sure to go for a provider who has some sort of experience in serving businesses in your specific industries or business sizes similar to yours.

Budget

Your finances are another critical aspect to evaluate. Identity verification solutions come with various pricing models, from subscription-based plans to pay-per-use options. Ensure that the solution you choose not only fits within your budget but also promises good value for money. And don’t forget to factor in potential extra costs for integration, training, and support.

Usability and Integration

Find out how easy the solution is to implement and use. A user-friendly interface is vital for ensuring that your staff can quickly adopt the new system without extensive training. Additionally, the integration process should be straightforward and minimally disruptive so that your regular business operations don’t suffer.

Security

Security cannot be overlooked when selecting an identity verification solution. Given the sensitive nature of the data involved, make sure that your chosen platform complies with industry security standards and employs strong encryption and data protection measures to safeguard customer information.

Training and Support

Ask about the level of training and support the vendor provides. A reliable solution should offer comprehensive training resources and responsive customer support to answer all your questions before, during, and after implementation.

Portfolios and Verified Reviews

A vendor's portfolio showcases their experience and successful implementations across various industries. Look for case studies that illustrate how their solutions meet specific regulatory requirements or adapt to different business needs, for instance.

Also check platforms like G2 or Trustpilot for user-generated feedback on the solution's usability, customer support, and integration capabilities. While overall ratings can give you a good idea about whether the platform is worth it as a whole, individual reviews reveal important details about the platforms’ actual performance and any downsides it has presented in the past.

By carefully considering these factors, you can make an informed decision that aligns with your firm’s needs and streamlines your identity verification processes.

Conclusion

To sum things up, selecting an identity verification solution is critical to improving how you onboard customers, ensuring regulatory compliance, and fortifying overall security. The tools we’ve reviewed offer various advanced features, including AI-driven checks and biometric authentication, all designed to integrate smoothly into existing business systems.

As businesses grow more digital, these solutions are becoming indispensable for maintaining trust and protecting sensitive data. A well-chosen solution will streamline operations and create a secure, seamless experience for customers. So, take your time to assess your firm’s specific needs and budget, and don’t hesitate to try out demos and trials before making a final decision.

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