Learn about different types of non-document verification methods and their benefits
Even with flawless UX and fast internet, document verification can be a time-consuming process resulting in customer drop-offs. But what if we told you that businesses can now onboard users in 45+ countries in milliseconds, with no need to upload or scan IDs?
Let’s compare documentary vs non-documentary verification, dive deeper into what document-free verification is, and explore its many benefits.
In this article, we use the term ‘document-free’ to describe verification methods that don’t involve uploading document scans—this includes verifying digital identity on the blockchain or through a credit bureau check. It’s important to note that ‘document-free’ is not synonymous with ‘Non-Doc,’ which exclusively refers to Sumsub’s Non-Doc Verification product.
Document verification usually includes checking authenticity and accuracy of documents, such as passports, IDs, driving licenses, or financial records, to verify the identity of an individual. The process typically involves reviewing, cross-referencing, and comparing information on physical documents or scanned copies of them. This verification process is commonly used in various fields, including financial institutions, insurance companies, real estate services, etc.
More advanced document verification includes several security feature checks, such optical character recognition (OCR), pattern recognition, and MRZ decryption.
However, there are some challenges with traditional document verification methods:
For these reasons, the world is moving towards document-free verification.
Document-free verification confirms identity quickly without relying on physical documents.
Methods of non-documentary identity verification include:
Global Database Verification is one of the best doc-free verification products for businesses seeking a reliable, efficient, and cost-effective solution for customer onboarding.
Global Database Verification includes only three simple steps:
Additional measures may include biometrics, device authentication (OTP), and document validity checks to further strengthen verification and prevent fraud.
Altogether, this allows you to get the following benefits:
Non-Doc Verification, another document-free product from Sumsub, provides a dependable and efficient alternative to ID-based user verification and onboarding. Its functionality involves extracting and verifying comprehensive customer data from government sources.
Non-Doc Verification is a completely standalone and secure procedure that works in two ways, depending on the country:
Depending on the jurisdiction, the entire KYC process may be substituted with Non-Doc, in addition to a Liveness check—a simple verification process completed in a matter of seconds.
Non-Doc offers the following benefits for business:
GDV and Non-Doc Verification can both be utilized for user verification, either as supplementary checks or as substitutes for the entire KYC process. Nevertheless, the suitability of each varies based on the industry and regulatory requirements.
GDV:
Non-Doc Verification:
GDV and Non-Doc Verification can perform:
In the case of GDV, the data provided is cross-referenced across many databases and the result is either a match, no match, or partial match.
For Non-Doc Verification, a full user record is extracted and cross-referenced against specific sources to produce match results and an up-to-date user profile, including identity, age and address fields.
Primary non-document verification confirms an individual’s identity without relying on traditional paper documents. This may involve the use of strong authentication measures, such as biometrics (fingerprint scans, facial recognition, etc.) or multi-factor authentication (combining something the user knows, like a password, with something the user has, like a smartphone for receiving a code). This process establishes the baseline identity of an individual before additional layers of verification may be applied, and is typically used by non-regulated entities.
Secondary non-document verification adds additional layers to the primary verification process, including further checks against databases, behavioral analytics, and more.
Document-free methods of identity verification can be Anti-Money Laundering (AML) compliant, but it depends on the region. Businesses must therefore ensure that their document-free verification methods comply with AML regulations in the jurisdictions where they operate and be aware of regulatory changes.
A combination of GDV (or Non-Doc), along with the collection of additional documents or information, if applicable, the cross-checking of data, and the confirmation of identity through liveness can guarantee 100% AML compliance, even for high-risk cases.
Non-Doc
Non-Doc Verification is a compliant way to onboard customers in many regions, including Argentina, Australia, Brazil, Canada, Colombia, Ghana, India, Indonesia, Malta, Nigeria, New Zealand, Philippines, South Africa, UAE, UK, USA.
GDV
Similar to Non-Doc, GDV can be used as a standalone verification method in the countries states above, where the AML regulations allow verifying the customer’s identity through reliable electronic sources. In particular, in the USA, the UK, Malaysia, Indonesia, etc.
Download this guide to discover the local jurisdictions that accept non-documentary verification as a compliant user onboarding method, and find out in which countries you can onboard users using Sumsub’s Non-Doc Verification product.
Bank Secrecy Act (BSA), the main Anti-Money Laundering (AML) legislation in the US, describes which information needs to be collected about customers in “Customer Identification Program: minimum requirements” (CIP).
The BSA also states that both documentary and non-documentary verification methods (as well as their combinations) are acceptable so long as
(i) the chosen procedures ‘’enable to form a reasonable belief that it knows the true identity of each customer”; and,
(ii) in case a non-documentary solution is elected, the firm applies additional procedures to address the risks where “the customer opens the account without appearing in person”.
Check this article to learn about detailed requirements of CIP.
US AML regulations could be compatible with non-documentary customer identification methods, however the AML-obligated entities performing it must be assured it knows the true identity of its customer. To ensure this, they can use additional KYC mechanisms, such as biometric checks.
In the UK, document-free verification methods are approved by regulations and can be utilized by businesses.
Sumsub offers Non-Doc Verification in the country, which can be used for multiple use cases, including ID, address, phone number, and age verification.
Sumsub’s Non-Doc Verification can be conducted in three stages:
Here are the benefits of Non-Doc Verification in the UK:
Non-Doc Verification is currently available for full user onboarding in Argentina, Bangladesh, Brazil, Indonesia, India, Kenya, Nigeria, the Netherlands, and South Africa.
Sumsub GDV allows you to potentially verify user data for over 5.5 billion people worldwide—all done quickly and securely without uploading multiple documents.
Non-Doc Verification can be used by crypto, gambling, fintech, transportation, e-commerce, and other industries. It has multiple use cases, including ID, address, phone number, and age verification.
Global Database Verification can be used as a standalone verification solution or in combination with other verification products. Some use cases include user pre-verification, where data is pre-screened before the full onboarding process, and user post-verification, which double-checks information submitted during the onboarding process.
A combination of Non-Doc and/or GDV with a document-based method could be a bulletproof option for high-risk cases or where regulations require checking the customer’s identity against multiple sources.
Both Non-Doc and GDV may be used for continuous monitoring with reliable data instantly updated in user profiles.
Non-document verification methods may include public databases or other 3rd party electronic ID verification services.
Sumsub’s Global Database Verification method (including Identity, Address and Age Verification) and Non-Doc Verification (checking ID numbers through certified ID providers, like banks in the UK) are the best examples of document-free verification methods.
The non-doc method of customer verification may be used in different industries, including fintech, crypto, e-commerce, iGaming, transportation, and insurance businesses. There are multiple use cases, including identity, age, and address verification.
Disclaimer: The information provided in this article is for general informational purposes only and is not intended to constitute legal advice.