iDenfy, a global RegTech startup offering AI-based ID verification and fraud prevention solutions, partnered with ECNG Digital, a Lithuania-based fintech company offering virtual currency exchange services and modern payment tools for merchants. iDenfy’s identity verification solution will enable ECNG Digital to reduce drop-off rates and simplify the identity verification process. 

While traditional banks often handle identity verification manually, the rise of fintech has spurred the digital transformation of Know Your Customer (KYC) procedures. According to iDenfy, this shift has ushered in benefits like faster onboarding and improved user experiences for customers and fintech service providers. However, fintech companies continue to grapple with the same challenges, which, as iDenfy claims, include inaccurate ID verification results or non-compliance with ever-changing regulatory requirements.

iDenfy officials further explain that this issue comes from the lack of effective measures, especially since risk-based decision-making demands varying levels of detail. For example, thorough risk analysis is crucial for significant international transactions in high-risk money-laundering regions. ECNG Digital agrees with this claim, adding that the company encountered several issues when searching for a new KYC service provider and saw limitations of free or low-cost AI ID verification solutions.

ECNG Digital began solving its challenges by evaluating multiple ID verification solution providers to increase security and ensure a seamless customer onboarding journey. It was important for the fintech company to inquire its potential providers about their data collection methods, the scope of supported documents, and the risk assessment frameworks they employ to help them make compliance-driven decisions. ECNG Digital aimed to adopt a KYC solution that focuses on user experience and accuracy while, at the same time, approving legitimate users without facing various KYC pipeline hurdles. 

To optimize user experience, ECNG Digital partnered with iDenfy. From now on, iDenfy’s identity verification software will help the fintech company apply custom-tailored verification processes to its individual users, complemented by various verification methods. They'll use a range of methods like checking government-issued IDs, taking selfies with live detection, and cross-referencing databases. Furthermore, iDenfy's in-house KYC experts will review ID verifications in real-time to improve accuracy alongside the AI software's results.

ECNG Digital is taking steps to boost data security with the help of iDenfy's user-friendly dashboard. This dashboard provides a simple way to access and oversee customer verification data. Users can even manually initiate identification sessions. It’s worth noting that iDenfy's comprehensive KYC solution is ISO/IEC 27001 certified, ensuring the utmost security for ECNG Digital customers' data. This partnership aims to detect suspicious user behavior and prevent unwanted registrations during the customer onboarding process.

Additionally, iDenfy will allow ECNG Digital to analyze all customer data signals and identify suspicious patterns that might go unnoticed by human reviewers. Instead of manually cross-referencing previous applications or closely inspecting ID document photos, iDenfy’s algorithms will automatically detect fraudulent activities, such as deepfakes, stolen documents, or altered images. According to iDenfy, this approach will reduce time and operation burden for the fintech company, automatically allowing ECNG Digital to verify more customers with less hassle. 

"In the virtual currency exchange and payment services world, the challenge is to strike the right balance between preventing fraud and swiftly verifying identities. Our goal is to assist ECNG Digital in achieving this by swiftly gaining a deep understanding while ensuring accuracy."  — said Domantas Ciulde, the CEO of iDenfy.