Know Your Customer (KYC) is a widely used technology for end-customer identity verification. KYC is essential in compliance and anti-money laundering efforts. For many businesses, such as cryptocurrency or investing platforms, KYC implementation is a compliance requirement before onboarding new clients. “Identity verification, which is part of KYC, is a valuable fraud prevention tool that can identify an account duplicate and prevent account takeovers,” said Lasma Kuhtarska, Noda’s co-founder & CSO. 

At Noda, we offer a range of ​​end-user KYC solutions to assist online merchants. For example, 

Noda offers a Pay & Go solution, which allows business to onboard their customers with non-ID upload and liveness detection. This feature fully covers the entire process, including onboarding, verification and taking the first deposit. 

Noda provides non-doc identity verification and full documental checks, including AML checks based on the customer's full name, address, and date of birth. If Noda is unable to match the data, the customer needs to pass the full verification flow by uploading the ID document. “Pay & Go is a sophisticated onboarding solution that allows our clients to boost their conversion rates and verify new customers seamlessly,” said Kuhtarska.

The solution is based on the open banking infrastructure, where traditional banks share customer data under customer consent via secure application programming interfaces (APIs).  “Open banking is a safe and reliable technology by itself, guaranteeing strong bank authentication and transaction protection during the payment,” explained Kuhtarska. “However, the payment could not be used as customer identity verification due to the UK and European laws. For most businesses working with customers’ personal details regular identity verification by providing ID documents and a selfie video is needed. Fortunately, open banking allows us to optimise identity verification flow, decreasing customer friction.” 

Kuhtarska listed the practical benefits of using open banking KYC tools to improve business performance. For example, merchants that employ solutions like Noda Pay & Go can boost onboarding conversation rates by integrating registration, instant deposit and identity verification into a single flow. Merchants can also increase the security of payouts by enabling bank account ownership verification. This allows businesses to verify the identity of a customer profile in just one click. Finally, tools like Noda’s anti-fraud solutions decrease fraudulent activity by detecting suspicious and duplicate accounts.