Review of most popular KYC-solutions for fintech and business

With tightening of AML legislation and the subsequent strengthening KYC verification requirements, fintech companies, and businesses, efforts in this area must be continually improved. In addition to in-house developments, outsourced KYC services are gaining popularity, offering a selection of best technologies and solutions. Third-party software for user verification help to save time and money by providing a ready-made solution tested over the years.

However, there are numerous KYC platforms available today, each with its own features, focus, and nuances to consider, besides the cost of services.

Today, we review the most commonly used solutions for automatic user verification in iGaming and fintech industries.

SumSub

Let's start with possibly the most popular option for iGaming — SumSub. Many of us immediately associate KYC solutions with this company's name, and for good reason: team has done a lot to achieve a high level of service and partner with leading brands.

SumSub provides KYC verification solutions for businesses dealing with individuals and options for onboarding legal entities. Additionally, it offers transaction monitoring for fraud, address verification, and “live” person verification using selfies or real-time video. The company has access to all necessary databases, including sanctions and politically exposed persons (PEP) lists, enabling thorough identity checks and document verification for authenticity and matching the person to provided document.

In an era where identity theft or profile registration with a fake name is common, especially in gaming, such functionality is indispensable. Otherwise, the business will be vulnerable to fraudulent schemes and may be used in many of them. Moreover, SumSub supports not only gaming industry but also trading, fintech, retail products, carsharing, and crypto companies. The service offers blacklist formation and a “known persons” database, and live human verification via phone call if needed.

The company's pricing policy is quite flexible and can be adapted to the size of the business, as it depends on the number of verifications and the range of services used. The basic plan starts at $1.35 per verification. There is also a trial period of 50 verifications over 14 days, allowing you to ensure the service suits your needs, with payment only for successful verifications. If your users make multiple attempts, some of which are unsuccessful, your budget will not suffer.

LexisNexis

Another well-known KYC company, LexisNexis, has roots in the USA and offers a wide range of data analytics services. The company processes large amounts of information for business analytics and market research, providing assistance with legal and operational aspects of business. Based on all these services, KYC and AML products have been developed as a separate focus, used not only by fintech companies and businesses but also by government agencies.

The list of services is impressive and challenging to explore in one sitting. Focusing solely on KYC, most gaming products limit cooperation to KYC checks, customer screening across various databases, monitoring, and transaction screening. LexisNexis provides access to different databases for manual or automated customer verification. It also offers fraud protection solutions and two-factor verification. This comprehensive package can fully equip large corporations with data solutions in one package, which is LexisNexis's calling card. The company has a good reputation and presence in many countries, so partnering with them immediately signals your partners a serious approach to security.

However, many may find such a wide range of services complex, and typical online industry merchants often prefer simpler services tailored to their specific business needs.

iDenfy

iDenfy service, focused on identity verification, is often used by payment systems. Its capabilities include “live verification” with biometrics, identity verification, NFC-based document authenticity verification, screening against PEP and sanctions lists, and fraud tracking tools.

The cost of services also depends on the number of verifications, with individual packages available that may or may not include certain services. This results in a customized set of services tailored to your needs, without overpaying for unnecessary ones. Such schemes are implemented in almost all similar providers, which is a definite plus for this industry. This approach is likely driven by the negative attitude of businesses towards AML expenses, as they are often seen huge and hindering optimization. However, it is important to understand that these costs are necessary, as using such services protects against much more serious expenses or reputational losses in unpleasant situations with clients. Verifying all counterparties is key to conducting business safely, especially in industries like gambling.

The company also provides services to businesses in healthcare, trading platforms, payment services, online games, crypto or blockchain-based products, domain registrars, and hosting providers.

Ondato

British AML solutions provider Ondato operates in 192 countries, offering eight types of solutions for various needs. Since 2018, Ondato has developed identity verification for users and businesses, even receiving several prestigious industry awards.

The cost of basic services is slightly lower than competitors, at around €0.95 per verification, allowing the company to compete confidently. For large businesses, this price can be further reduced depending on the number of verifications. However, it is essential to consider the services included in basic tariff, as additional payments will be required for crucial aspects like sanctions or PEP checks. Additionally, for a separate fee, company offers verification of documents against lost or stolen databases, age verification via photo/video, and address verification document checks.

On the one hand, this approach can be successful if only basic verification is needed. However, based on the experience of many industries, basic verification is almost always insufficient, and additional checks are necessary. Therefore, pricing policy is somewhat too much detailed and may not be quickly assessed at first glance. Nevertheless, the quality of services is not affected, and prominent partners like OnlyFans, Microsoft, and Liminor Bank trust Ondato for their KYC verifications. Among the company's clients you can meet many banks, including Swedbank and SEB, as well as gambling companies like Tonybet.

KYC AID

Another effective option for client verification is KYC Aid. Representatives of gaming industry, 18+ websites, legal companies, crypto and fintech startups, and common funds can connect to this tool.

The basic full package for individual verification, including all necessary screenings, costs €1.10, while business client verification costs €10. KYC Aid has access to government databases in various countries, which can be connected as an additional service if desired. This is particularly relevant for gambling products in emerging markets, such as Brazil, where new licensing requirements and AML compliance standards have recently been introduced.

Brazil and India are top markets for KYC Aid, as these countries often interest many businesses and pose high fraud levels, requiring thorough monitoring. If you are looking for a solution specifically for these regions, consider KYC Aid's offerings.

We know that these are not all KYC service providers on the market; there are many more, and covering all of them in one review is challenging task even for us. However, after analyzing our clients and overall market trends, we have identified that these solutions are used more frequently than others, and there are likely good reasons for this. You can start your research with these popular options and delve deeper into other alternatives as needed. We hope this review was helpful; stay with us on the pages of MonoTalks.