iDenfy, a global service provider specializing in identity verification and fraud prevention, has launched a streamlined onboarding solution utilizing electronic bank-based identity checks.
This update allows businesses to offer users an electronic ID verification (eIDV) option when physical ID documents are not available. This advancement addresses a prevalent issue in the Know Your Customer (KYC) process, where customers often abandon the process due to not having identification documents at hand.
Electronic Verification for the Modern Age
In today's digital landscape, iDenfy's innovative approach caters to users who may not always carry physical identity cards. The electronic ID methods employed, such as Swedish BankID, UK OneID, USA OneID, and the Baltic region's Smart-ID, as well as more than 60 other digital identity systems, eliminate the need for physical document verification. Internal data from iDenfy reveals a 23% reduction in drop-offs since adopting this hybrid method, highlighting the effectiveness of this approach.
Enhancing the Onboarding Experience
CEO of iDenfy, Domantas Ciulde, explained, “We’re actively expanding electronic identity support with reliable banks and simplified workflows across different regions to offer our customers and their clients the most convenient option to verify themselves without a physical card burden. We believe that locally trusted digital methods are the way to create a much smoother onboarding experience.”
The non-physical verification system enhances user experience by simplifying security checks
The non-physical verification system enhances user experience by simplifying security checks. Modern systems can automatically detect users' locations and adjust required parameters, obviating manual entry of document types and personal details like ID numbers.
Optimizing Digital Identity Credentials
iDenfy aims to further refine the KYC user experience by introducing upgrades that suggest switching to eID verification if document-based efforts fail, for example, due to poor image quality or technical issues. These enhancements could potentially lower drop-off rates by an additional 30%, according to iDenfy's projections. Users can easily authenticate using pre-saved digital identity credentials like passwords or codes linked to their eID, based on the business's regulatory requirements, including address verification or biometric checks.
Flexible Verification Options
The system's flexibility allows users to switch between physical and electronic verification methods seamlessly within the same session, without restarting or engaging with extra platforms and security questions. This approach is timely, aligning with wider digital identity adoption trends driven by initiatives like the EU’s eIDAS 2.0 regulation.
This initiative promotes digital identity wallets, especially in Nordic countries where electronic identity systems are commonplace. iDenfy's verification system is available to customers at no additional cost, and can be activated via the platform's dashboard without further integration needs.
Addressing High Operational Costs in KYC
iDenfy's verification system is available to customers at no additional cost
Adomas Vitkauskas, the CFO of iDenfy, noted, “Our insights have shown that many users weren’t dropping off due to distrust or reluctance; they simply didn’t have their ID documents nearby. Electronic identities offer the same level of trust as traditional documents and are often even more secure; therefore, giving users the flexibility to switch within the same session was a logical step forward.”
Despite prioritizing financial crime as an AI investment focus, U.S. firms still face high operational costs and fragmented technological infrastructures. According to Fenergo research, financial institutions globally lose customers due to inefficient onboarding systems. U.S. firms, for instance, spend an average of $72.9 million annually on KYC operations, with considerable per-client expenses for KYC reviews.
The Need for Intelligent Onboarding Systems
Automation in periodic KYC reviews remains minimal, despite investments. American financial institutions face a costly paradox of maintaining compliance infrastructures costing millions while losing clients owing to unscalable systems. To succeed, firms must develop intelligent, flexible onboarding systems ensuring client retention without unnecessary burdens.
iDenfy, a global identity verification and fraud prevention service provider, has introduced a simplified onboarding solution powered by electronic bank-based identity checks. Businesses that previously relied on physical ID document verification can now give users the option to complete the process through an electronic ID eIDV flow when official documents are not in hand.
This update addresses a common issue in Know Your Customer KYC onboarding, where customers abandon the process simply because they do not have an ID card or passport with them at the time of verification.
Carrying physical cards
iDenfy’s latest innovation addresses the needs of users who are not always carrying physical cards in this technology age. By allowing users to replace document verification with electronic ID methods, including Swedish BankID, UK OneID, USA OneID, and Smart-ID, widely used across the Baltic region, as well as other non-document-verification systems that support more than 60 types of digital identities.
According to iDenfy internal information, since the introduction of this hybrid verification approach, the company has seen a 23% decrease in drop-offs among users who would otherwise have abandoned the process due to not having their physical documents at hand.
Smoother onboarding experience
“We’re actively expanding electronic identity support with the reliable banks and the simplified workflows across different regions to offer our customers and their clients the most convenient option to verify themselves without a physical card burden. We believe that locally trusted digital methods are the way to create a much smoother onboarding experience,’’ said Domantas Ciulde, CEO of iDenfy.
The non-physical electronic verification system is built with user experience in mind to simplify security checks and quicken the flow times. The most burdensome tasks, such as manually selecting document types, country of origin, and typing needed ID numbers, can be removed as the modern systems can automatically detect the user's location and adjust parameters accordingly with IP data signals.
Digital identity credentials
In order to fully optimize the KYC user experience, iDenfy is currently working on further upgrades. To minimize the need for numerous attempts, a new feature will right away suggest switching to eID verification in a situation if a document-based attempt fails due to low image quality, lighting problems, or missed data. Internal company projections indicate this could lower overall drop-off rates by an additional 30%.
With iDenfy’s system, the process is straightforward: users in supported regions can authenticate themselves using familiar, pre-saved digital identity credentials, such as codes or passwords tied to their official eID. Depending upon the business and its regulatory demands, these options may include proof of address, bank account verification, biometric checks, or other KYC layers.
Electronic verification methods
Adding flexible options to choose from should help businesses to improve conversion rates while keeping strong security standards. It is important to note that the users can simply switch between physical and electronic verification methods in the same session without the need to restart the process, switch to any other platforms, or complete extra security questions to process the data.
The timing of this release aligns with broader trends in digital identity adoption. The EU’s eIDAS 2.0 regulation is accelerating the rollout of universal digital identity wallets across member states, while Nordic countries already rely heavily on electronic identity systems for everyday transactions. iDenfy’s combined verification flow is now available to all customers at no extra cost and can be activated directly through the platform’s dashboard without requiring additional integration work.
High operational costs
“Our insights have shown that many users weren’t dropping off due to distrust or reluctance; they simply didn’t have their ID documents nearby. Electronic identities offer the same level of trust as traditional documents and are often even more secure; therefore, giving users the flexibility to switch within the same session was a logical step forward,” said Adomas Vitkauskas, the CFO of iDenfy.
US firms prioritise financial crime as the top AI investment area, though they continue to grapple with high operational costs and fragmented in-house technology systems. According to recent research by Fenergo, financial institutions worldwide continue to lose customers due to inefficient onboarding systems that fail to align with real user behaviour.
Flexible onboarding systems
The study reveals that U.S. firms spend an average of $72.9 million annually on KYC operations alone. On a per-client basis, more than half of corporate and institutional banks spend between $1,500 and $3,000 to complete just one client's KYC review, and one in five spends more than $3,000 per review.
To this day, automation of periodic KYC reviews remains limited, meaning that manual inefficiencies persist despite growing investment. U.S. financial institutions are caught in a costly paradox, spending tens of millions on compliance infrastructure while simultaneously losing clients due to unscalable and inefficient systems. The firms that will win in the years ahead are those that engineer intelligent, flexible onboarding systems capable of retaining clients throughout the process without unnecessary burden.
