KYC Provider Selection: Fime's Insights

Published Date : 11/11/2025 

Financial institutions face significant challenges in selecting the right KYC provider for online transactions, especially with the rise of sophisticated fraud. Fime and Consult Hyperion offer valuable insights and a checklist to guide the decision-making process. 

Financial institutions selecting a KYC provider for online transactions must navigate a series of challenges, even as the emergence of sophisticated fraud enabled by biometric spoofs and AI forgeries makes rigorous evaluation of their technologies essential. The challenge and what banks and other financial institutions can do about it is the topic of an ebook published by Fime and its parent company, Consult Hyperion.

The ebook cites Entrust figures showing that digital counterfeiting techniques surpassed physical counterfeiting for the first time ever during 2025. This shift underscores the increasing importance of robust KYC solutions that can effectively combat digital fraud.

Lack of internal expertise, the complexity of integration, and the risks of vendor lock-in or wasted investments are among seven important considerations identified by Fime for financial institutions working towards online KYC implementation. Fime and Consult Hyperion also offer an example of a check-list of high-level characteristics to look for in a KYC provider. These include coverage area, data source quality, efficiency, and support. Evaluating these characteristics is one place in the process where independent expertise from labs like Fime, as well as advisory services like those from Consulting by Fime, come into play.

Marcelo Bellini Garcia, VP of digital identity at Consult Hyperion and consulting by Fime, delved into one of the challenges faced by financial institutions in a September blog post on the extent of the market opportunity afforded by digital identity. As many of the digital ID systems launched in both the public and private sectors do not use standardized frameworks, they often fail to interoperate. eIDAS 2.0 may change things in Europe eventually, but interoperability for cross-border transactions remains particularly elusive, Garcia writes. Standards bodies provide a way for identity systems to speak to each other, while certification bodies like Fime can help ensure the correct implementation and threat protections that earn trust.

Fime also shared insights into important considerations for financial institutions and others choosing a liveness detection provider in the 2025 Face Liveness Market Report and Buyers Guide from Biometric Update and Goode Intelligence. This report provides a comprehensive overview of the market, including key players, technologies, and best practices for implementing liveness detection solutions. 

Frequently Asked Questions (FAQS): 

Q: What are the main challenges financial institutions face when selecting a KYC provider?

A: Financial institutions face challenges such as lack of internal expertise, complexity of integration, and the risks of vendor lock-in or wasted investments. They also need to ensure that the KYC provider can handle sophisticated fraud techniques like biometric spoofs and AI forgeries.

Q: What does the ebook by Fime and Consult Hyperion cover?

A: The ebook covers the challenges financial institutions face in selecting a KYC provider and provides a checklist of high-level characteristics to look for in a provider, including coverage area, data source quality, efficiency, and support.

Q: Why is interoperability important in digital identity systems?

A: Interoperability is crucial for digital identity systems because it allows different systems to communicate and work together, enabling seamless cross-border transactions. Without standardized frameworks, systems often fail to interoperate, leading to inefficiencies and security risks.

Q: How can Fime and Consult Hyperion assist financial institutions in their KYC provider selection?

A: Fime and Consult Hyperion offer independent expertise and advisory services to help financial institutions evaluate KYC providers. They provide a checklist of high-level characteristics and can ensure the correct implementation and threat protections that earn trust.

Q: What is the significance of the 2025 Face Liveness Market Report and Buyers Guide?

A: The 2025 Face Liveness Market Report and Buyers Guide provides a comprehensive overview of the face liveness detection market, including key players, technologies, and best practices. It helps financial institutions and others choose the right liveness detection provider by offering detailed insights and recommendations. 

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