How to choose and integrate an identity verification provider

The Bottom Line

To operate safely and legally in the UK financial landscape, you must verify that your customers are who they say they are. The most efficient way to do this is by selecting a third-party Identity Verification (IDV) provider and connecting their software to your platform via an API. This allows you to perform automated Know Your Customer (KYC) checks instantly, ensuring you meet Anti-Money Laundering (AML) standards without slowing down your user experience.

Selecting the right provider

Not all verification tools are created equal. When researching providers (such as Onfido, Sumsub, or Veriff), focus on those that offer high levels of automation and specific coverage for UK-based documents like driving licenses and passports. Consider the following factors:

• Accuracy and Speed: Does the provider use AI to verify documents in seconds, or do they rely on manual reviews that could delay your onboarding?
• User Experience: Look for a provider that offers a "web-view" or mobile SDK (Software Development Kit). This ensures the camera interface for capturing ID photos is smooth and professional.
• Cost Structure: Most providers charge per check. Ensure the pricing model fits your expected volume of new customers.
• Data Sources: For UK compliance, it is often beneficial if the provider can cross-reference names against the electoral roll or credit headers.

How to integrate the service

Once you have chosen a partner, you will need to bridge the gap between your app and their database. This is usually handled by your lead developer through an Application Programming Interface (API). Follow these general steps:

1. Access the Sandbox: Use the provider's test environment (the sandbox) to send mock data and see how the system responds without incurring costs.
2. Configure your triggers: Decide at exactly which point in the user journey the check should happen. Usually, this is immediately after a user creates an account but before they can move money.
3. Set up Webhooks: Configure webhooks so that the provider can automatically notify your system once a check is 'Approved' or 'Rejected'.
4. Handle Rejections: Build a clear process for users who fail the automated check. Will you allow them to try again, or will they be directed to contact your support team?

Best practices for a smooth rollout

Integrating identity checks is a balancing act between security and conversion. If the process is too difficult, customers will abandon your app before they even start.

Pro Tip: Always ensure your chosen provider is GDPR compliant. You are sharing sensitive personal data with them, so verify that their data encryption and storage policies meet UK standards.