iDenfy, a US-based global identity verification and fraud prevention provider, has introduced an electronic identity verification (eIDV) flow as an alternative to physical document checks during KYC onboarding.
The update allows users to authenticate through electronic banking identity systems, including Swedish BankID, UK OneID, USA OneID, and Smart-ID, widely used across the Baltic region, as well as other non-document verification systems supporting more than 60 types of digital identities.
The feature addresses a common drop-off point in KYC workflows, namely, users abandoning the verification process because they do not have a physical ID card or passport to hand at the time of onboarding. Since introducing the hybrid verification approach, iDenfy reports a 23% decrease in drop-offs among users who would otherwise have abandoned the process for this reason.
User experience and upcoming enhancements
The eIDV flow removes manual steps such as selecting document type, country of origin, and entering ID numbers, with the system using IP data signals to automatically detect the user's location and adjust parameters. Users can switch between physical and electronic verification methods within the same session without restarting the process or completing additional security steps.
iDenfy is developing a further enhancement that will automatically suggest switching to eIDV if a document-based attempt fails due to image quality or lighting issues. The company projects this could reduce overall drop-off rates by an additional 30%.
Furthermore, the eIDV capability is available to all iDenfy customers at no additional cost and can be activated through the platform's dashboard without additional integration work. The launch aligns with the EU's eIDAS 2.0 regulation, which is accelerating the rollout of digital identity wallets across EU member states.
Commenting on the news, Domantas Ciulde, CEO of iDenfy, said locally trusted digital identity methods are the way to create a more optimal onboarding experience without the complexity of physical document requirements. Adomas Vitkauskas, CFO of iDenfy, said many users were dropping off not due to distrust but simply because they did not have their documents nearby, making within-session switching a logical step forward.
