iDenfy, a Lithuania-based identity verification and fraud prevention software provider, announced the release of its new Bank Verification solution. This tool is designed to enhance the customer onboarding process by integrating open banking solutions, helping businesses comply with Know Your Customer (KYC) regulations. The Bank Verification solution will help industries like crypto, recruitment, or fintech ensure that the user isn’t a fraudulent account holder and isn’t providing forged data.

As the Regulation on the Markets in Crypto-Assets (MiCA) and Know Your Customer (KYC) requirements become increasingly stringent, the demand for robust bank verification services has never been more critical. However, iDenfy’s research shows that cybercrime continues to escalate at an alarming rate. Recent estimates indicate that the global cost of cybercrime will reach a staggering $9.5 trillion USD by the end of the year. This figure reflects not only the immediate financial losses incurred by individuals and organizations but also the long-term repercussions on data integrity, customer trust, and business operations.

With connections to over 2,500 banks across 29 countries, iDenfy's Bank Verification solution enables organizations to authenticate customers in real-time by matching their received bank account details with onboarding data. This solution protects individual privacy and helps organizations comply with KYC regulations, which are essential for preventing money laundering and ensuring transparency. According to Domantas Ciulde, the CEO of iDenfy, the new solution helps manage accounts across multiple banks, regardless of the client’s transaction volume, helping make better decisions while protecting financial data and, more importantly, not overburdening the end-user with extra verification steps.

The new Bank Verification solution will onboard real users faster and prevent illicit activities by automatically retrieving important identity information — such as the users’ names, IBANs, and familiar bank login credentials to speed up the process. Moreover, businesses are able to identify customer risk levels using the open banking API automatically, allowing compliance teams to analyze customer transactions and determine financial health, balance sheet state, and potential risks.

“Compliance teams will be able to access history logs, including translation dates and amounts, which enhances transparency and reduces risks associated with financial fraud,” — explained Domantas Ciulde. “We’ve created this solution to help other compliance teams facilitate proper internal and external audits by accessing detailed transaction information in one single, easy-to-use dashboard.”

As a result, iDenfy’s updated system automates the process of verifying customers’ financial standings, including proof of funds verification, by extracting detailed bank statements. The data can then be cross-checked with the user’s identity details, helping businesses flag suspicious activity and onboard only legitimate customers. Companies can store transaction logs for up to 8 years and download complete transaction reports in PDF format, simplifying auditing and compliance processes. It is important to note that sensitive client information is not stored to protect customer rights.

This tool also addresses the needs of high-risk industries by offering a built-in KYC risk assessment tool. Businesses operating in high-risk industries such as trading, gambling, and cryptocurrency can use this feature to verify customers more thoroughly, assess transaction risks, and detect suspicious behavior before actually onboarding users, applying enhanced due diligence (EDD) in riskier scenarios. 

"As regulatory demands in the cryptocurrency, recruitment, and fintech sectors intensify, our Bank Verification solution is essential for businesses facing compliance challenges. We have developed this service to help our partners execute onboarding operations quicker and ensure a smooth KYC process when verifying new users. By integrating robust fraud detection tools, we empower businesses to maintain transparency and prevent illicit activities," added Domantas Ciulde.

In addition to these new changes, it’s worth mentioning that iDenfy's original KYC software can recognize and verify more than 3,000 documents across 200+ countries, utilizing advanced facial recognition and 3D liveness detection to prevent fraud 24/7. As a bonus, a dedicated manual KYC review team oversees these processes to ensure no system errors or fraud attempts on the user interface.

Domantas Ciulde, CEO of iDenfy, said: “Our new solution will help businesses simplify identity verification and ensure they stay ahead of regulatory requirements. The combination of real-time verification, detailed transaction audits, and automated risk assessments makes this an essential tool for businesses to improve their onboarding processes and reduce fraud risks”.