The blockchain revolution is currently revolutionizing many aspects of the incumbent financial industry, virtually eliminating transfer fees and facilitating near-instantaneous transactions across international borders. With regulatory bodies around the world beginning to take notice of the blockchain, however, regulatory aspects such as know your customer and anti-money laundering are becoming more important.
When it comes to regulatory compliance, identity verification is arguably the most critical factor. Without determining the identity of a user, it’s impossible for financial platforms- blockchain or otherwise- to meet the requirements of the law. While the technological architecture of the financial industry is rapidly changing, the way in which finance platforms verify user identities is not.
A young Estonian entrepreneur, however, aims to change this with a powerful and agile new online identity verification platform called Veriff. The Veriff platform is so secure and accurate that even identical twins can’t fool it, and has currently gathered a significant amount of funding.
In this article, we’ll take a look at the Veriff platform and find out what makes it different from other online identify verification platforms.
What Is Veriff?
The Veriff platform originated when a group of financial tech professionals, led by Kaarel Kotkas, observed that the existing processes used by financial institutions to verify identity online were slow, cumbersome, and ineffective.
By gathering a group of forward-thinking innovators and securing development funding, the Veriff team established a highly agile and accurate online identification platform that provides hassle-free and secure authentication, cross-platform functionality, and increased conversion rates as well as decreased fraud.
How Veriff Works
The Veriff identity verification system involves a number of steps. To verify their identity with Veriff, users first use the webcam of their computer or smartphone camera to take several photos of government-issued identity documents such as a driver’s license or a passport both with and without flash.
Next, Veriff users repeat this process, taking selfies of themselves both with and without flash. The Veriff platform then analyzes the provided image data with a number of advanced algorithms that compare the photo identification documents with the images of the user themselves. The algorithms used by Veriff are so advanced that they are able to detect minute differences that would be unseen by the human eye.
After this process is complete, the Veriff platform offers a number of other steps that vary depending on local regulatory requirements. In Estonia, for example, the Veriff platform uses a team of employees that conduct short video interviews with users seeking verification in order to allow them to open financial services such as bank accounts over the internet.
Veriff also uses the data provided by identity documents and measures it against publicly available data in Estonia’s population register to ensure that the user really exists, a process that can be repeated in many different countries to ensure regulatory compliance.
The Veriff platform is a highly intelligent approach to online identity verification. With blockchain based financial platforms beginning to be scrutinized by governmental regulatory bodies around the world, Veriff could be a game-changer in the identification process.