Veriff's Goal to Enhance Digital Identity in Finance

Published Date : 7/29/2025 

Explore how Veriff is revolutionizing digital identity verification in the financial services industry, addressing challenges like deepfake fraud and regulatory compliance. 

Onboarding clients has always been a significant challenge in banking, with many financial services providers hesitating to digitize identity verification. Financial services are naturally conservative and often rely on government solutions, such as government-issued digital identity frameworks, to meet regulatory demands. According to Leda Glyptis, a fintech advisor and executive, there is a delicate balance between creativity and the nervousness around overreaching, which can compromise freedom for security or security for access.

Glyptis, speaking on the Veriff Voices podcast, highlighted that financial services companies often overload their systems with different information to comply with regulatory requirements. This complexity makes it difficult to create a single, transferable identity asset, leading to the same customer being treated as different individuals across various products. A few years ago, Glyptis was optimistic about reusable identity solutions, such as the Norwegian BankID. However, the current challenge holding banks back is deepfake fraud, which poses a significant threat to the integrity of digital identity verification.

Looking ahead, the next five years could see the development of more sophisticated approaches to digital identity. One potential solution is a biometrically rich identity verification system, offering multiple ways to verify an identity. This approach would be much harder to hack due to the additional layers of information required for verification. Glyptis expressed her hope for a harmonized baseline digital identity asset globally, which would enhance trust and security in the digital space.

Veriff, a leading identity verification company, has its own vision for digital identity. Hubert Behaghel, Veriff’s Chief Product and Technology Officer, noted that while customers in industries like financial services, ecommerce, and social media have primarily integrated government-backed digital identity schemes, the issue is the proliferation of these schemes. Veriff sees an opportunity in issuing a “digital passport” that is not tied to a specific government scheme but is backed by a user’s data and their online behavior. This approach aims to create a form of trust capital.

Behaghel also discussed the evolving landscape of fraud in financial services. Initially, identity verification products were driven by compliance requirements. However, the rising cost of fraud is now a significant driver for fintech companies to adopt more robust identity verification solutions. Veriff has been at the forefront of this trend, promoting its unique approach to combating fraud and synthetic identities. This approach involves multiple checks and a specialized team that provides feedback on specific verification levels that do not meet the required confidence levels.

Kaarel Kotkas, CEO of Veriff, emphasized the importance of human creativity in the verification process. “Humans are the ones who are creative to actually explore all the different avenues,” he said in an interview with Fintech Magazine. Veriff’s approach, known as “human in the loop” verification, combines automated checks with human oversight to ensure the highest level of accuracy and security.

Veriff’s efforts have not gone unnoticed. The company has been named a leader in the identity verification industry by market analysis firm G2 Grid. Additionally, Veriff recently honored several of its customers with the inaugural 2025 Veriff Trust Awards, recognizing companies that bring more trust to the online space. Notable recipients include Instacard, Uber, Kueski, and Valr.

In conclusion, Veriff’s vision for digital identity verification is poised to address the challenges of deepfake fraud and regulatory compliance while enhancing trust and security in the financial services industry. By leveraging biometrically rich verification methods and a “human in the loop” approach, Veriff is paving the way for a more secure and efficient digital future. 

Frequently Asked Questions (FAQS): 

Q: What is the main challenge in digitizing identity verification in financial services?

A: The main challenge is the complexity of regulatory requirements, which often leads to overloading systems with different information and makes it difficult to create a single, transferable identity asset.

Q: What is Veriff's approach to digital identity verification?

A: Veriff aims to issue a 'digital passport' backed by user data and online behavior, creating a form of trust capital. They also use a 'human in the loop' approach, combining automated checks with human oversight.

Q: How does deepfake fraud impact digital identity verification?

A: Deepfake fraud poses a significant threat to the integrity of digital identity verification, making it harder to ensure the authenticity of identities.

Q: What is the 'human in the loop' verification approach?

A: The 'human in the loop' approach involves multiple automated checks and a specialized team of humans who provide feedback on specific verification levels that do not meet the required confidence levels.

Q: What are the Veriff Trust Awards?

A: The Veriff Trust Awards are given to companies that bring more trust to the online space. Notable recipients include Instacard, Uber, Kueski, and Valr. 

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