Biometrics providers push further into financial services, past digital ID misconceptions
A set of stubborn myths about digital ID are posing stubborn barriers to its application in banking and financial services, Open Identity Exchange Chief Identity Strategist Nick Mothershaw says. Despite this, a new platform from Caf, a partnership for Sumsub, approval for FacePhi and awards for Shufti Pro show strong momentum in the biometric KYC space.
In an editorial for Finextra, the OIX head identifies and addresses in turn concerns around fraud, data security and liability, accessibility and inclusion, and data exploitation.
Digital ID trust frameworks play the critical role in guarding against the first group of concerns, Mothershaw points out. Along with strong authentication tools like biometrics, digital ID could dramatically reduce fraud.
Inclusion is an ongoing focus, and Mothershaw notes the OIX Inclusion Steering Group and its proposal for a voucher and photo to bring people without ID documents into the digital ID ecosystem. For those who do not want a digital ID, the trust framework should supply an alternative mode of access.
Fears about data exploitation must be addressed by local data protection legislation.
The perceived challenges, Mothershaw writes, have largely been addressed or are in the process of being addressed.
Caf launches KYC platform
Caf has launched its Know Your Everything digital ID platform to help businesses protect their users while offering optimal digital experiences.
The Know Your Everything platform provides customer onboarding and identity verification, with selfie biometrics and document validation for KYC and KYB checks. Its liveness detection has passed iBeta Level 1 testing, and the company says its platform provides best-in-class data coverage, with availability in more than 200 countries and territories. It also features a drag-and-drop workflow builder and a flexible orchestration engine, according to the company announcement.
Caf says it doubled its revenues in 2022, despite challenging global market conditions for startups. The company also recently changed its name from ‘Combate à Fraude.’
“As we move further into a Web 3.0 world and beyond, global, anywhere commerce and banking will become the norm,” says Caf CEO Darryl Green. “This means businesses need to know a lot more about their customers to properly identify risk and root out fraud. Our new global KYE platform will allow businesses to do just that, while maintaining a quick and seamless verification and authentication experience for good users.”