Compare KYC Providers to Protect Your Clients: Veriff, Onfido, or Plaid

KYC solutions market has a big pool of providers that offer options capable of helping your business enhance the security and improve customer expereince. Currently, the market size is projected to reach USD 15.81 billion by 2030, and is rapidly expanding at a CAGR of 20.8% from 2022 to 2030.

However, it’s easy to get lost in this multitude of choices, and many of my customers, partners, and colleagues often ask me how to choose the one solution that will work for your business. I’ve over 20 years of experience in software development, and together with my team we delivered 500+ projects and several fintechs. I know that KYC is the backbone of fintech operations, and without them securing the business would be extremely tough.

But it’s even more than that. If you choose the wrong solution, you risk to encounter financial losses, fail to comply with regulations, or make your business incapable of scaling. In this article, I want to discuss the most popular KYC vendors that I’ve personally worked with and implemented for our customers. So, this comparative overview will discuss Veriff, Onfido, and Plaid and what each of them offers to businesses.

What is KYC Software?

KYC software is a tool that businesses use to check who their customers are and get a handle on how they act. Know Your Customer is a crucial process for evaluating and keeping an eye on customer risks, plus it’s a legal must-do to follow Anti-Money Laundering (AML) laws. 

Financial institutions use many rules and regulations to ensure they’re dealing with legitimate customers. This involves confirming who the customers are, checking out any risks they might pose, and watching their transactions for any fishy stuff. 

To learn more about the KYC/AML 2024 companies, procedures and how they work, read the article KYC: Fraud Detection in Fintech. It will help you to get a clear picture of all the processes involved in this innovation.

What Businesses Use KYC?

• Brokers and Investment Platforms. It’s crucial to go through KYC procedures for brokers and investment platforms. This helps confirm who investors are, follow the rules, and stop any shady business.
• Banking. KYC procedures are a big deal in banking. They’re needed for opening accounts, giving out loans, handling transactions, and following the rules. Banks have to make sure their customers are who they say they are to stop any tricky stuff and keep the financial system in good shape.
• Fintech. Companies often provide online platforms for money-related things like peer-to-peer lending, digital wallets, crowdfunding, and investment platforms.
• Cryptocurrency. Places where you trade or use cryptocurrency need robust crypto KYC service providers. This is to follow the rules against money laundering and keep the digital money world trustworthy.

How to Choose a KYC Vendor?

When integrating a KYC solution, our team typically leans towards pre-built solutions rather than developing from scratch. This involves choosing a KYC platform or service that aligns with your needs and offering a tailored solution for your business.

For example, picking a trustworthy KYC/AML 2024 software provider is a big deal for ensuring your compliance efforts work out.

A good one should be clear about what they do and let you check how they do it. If you don’t have time to investigate their websites — contact a manager for a short call where you can ask about how they stop fraud, keep and handle data, and if they can create reports for compliance.

Clarity is key to understanding the KYC process and maintaining a record of rule adherence. As you navigate decision-making, essential factors become evident. Here are the required considerations to ensure a smooth and swift process when selecting the right one among KYC vendors:

1. Business size and reach. If you run a small business, you might not need a KYC provider offering many services. But if you’re a big company with customers worldwide, you’ll want to research KYC providers that can handle your needs.
2. Industry requirements. Different industries have different rules for KYC. For instance, financial services businesses need to dig deeper into their customers’ details. When picking a KYC provider, make sure they follow the rules that apply to your industry.
3. Budget concerns. KYC service providers come at different prices. When choosing one, compare costs and features to get the best bang for your buck.

As a business owner looking for the top KYC vendors, the decision-making process is critical for ensuring smooth onboarding, regulatory compliance, and robust fraud prevention.

In this comparison article, I’ve selected three KYC/AML 2024 solution providers — Veriff, Onfido, and Plaid — based on our industry experience. I’ve worked intimately with each of these platforms, gaining profound insights into their functionalities and capabilities.

Now, let’s delve into the complexities of each, examining what makes them unique and determining which one best aligns with your business requirements.

Veriff

Mainly used for: governance, risk and compliance, identity verification, and protection for fintech.

Veriff, an industry leading KYC solution, strongly emphasizes regulatory compliance and cost efficiency. With optional anti-money laundering checks, a swift 6-second average verification time, and coverage of 11,300+ identity documents, Veriff is well-suited for fintech businesses that must ensure they always align with compliance requirements and whose clients must be safe and protected.

Additionally, this KYC as a service provider supplies customizable verification options, allowing businesses to tailor their user verification processes through both manual and automated ID checks.

Key features unwrapped:

• Ensures KYC compliance, minimizing acquisition costs.
• Achieves a 6-second verification time for seamless onboarding.
• Automatic document recognition optimizes the process.
• Supports 11,300+ identity documents from 230+ countries.
• Pay only for actual verification sessions, reducing overall costs.
• Integrated fraud prevention with a selfie and document photo.
• 98% check automation rate enhances efficiency.
• AI-powered automation for minimal-step onboarding.
• Customizable verification tailored to business needs.
• Supports 48 languages for business expansion.
• Guides users through document photo capture and selfie.

Onfido

Mainly used for: financial services, digital-first banking, banking, gaming, sharing economy, telecommunications, retail & e-commerce.

Onfido, one of the top KYC service providers, offers an AI-driven platform that guarantees KYC/AML compliance. With over a decade of experience and a global presence covering 195 countries, Onfido presents itself as an end-to-end solution.

Notable features include automated verifications in under 10 seconds, a variety of verification methods, and a proven track record of compliance.

Onfido’s commitment to cost-effective KYC automation and a consolidated identity partner approach positions it as an excellent choice for businesses that want to expand globally while adhering to regulatory standards.

Key features unwrapped:

• Presence in 160+ countries for seamless global growth.
• Photo IDs for robust KYC checks (2,500+ documents, 195 countries).
• Biometric verification options for enhanced security.
• KYC/AML compliance using trusted data sources.
• Leverages device intelligence for trusted user differentiation.
• ETSI TS 119 461 certified IDV for confident market entry.
• Automated verifications save time and cut customer acquisition costs.

Plaid

Mainly used for: personal finance, mobile banking, and other fintech.

Plaid’s Identity Verification solution focuses on swift and secure user authentication as a KYC/AML provider.

With features such as liveness confirmation, behavioral analytics, and an extensive range covering 16,000+ ID types, Plaid is a superhero of efficient verification.

The solution’s anti-fraud engine and proactive risk assessments provide an additional layer of security. Plaid has multilingual support and flexible deployment options, including a no-code initiation, making it an attractive choice for businesses placing a premium on a seamless onboarding experience and advanced fraud prevention.

Key features unwrapped:

• Prevents attacks and reduces fraud losses.
• Checks risk associated with phone numbers and addresses.
• Identifies VPNs, Tor, and suspicious sessions.
• Detects fabricated or stolen identities.
• Verifies identities in less than 10 seconds with high pass rates.
• Supports 16,000+ ID types in 200+ countries.
• Optimizes automated verifications by 30%.
• Multilingual support for a global user base.
• Easy setup and management for teams.
• No-code editor for verification flows.
• The “Remember Me” feature enables one-click verification.

KYC Comparison Table

Comparative Analysis of Onfido, Plaid, and Veriff for Business Integration

In my work with Onfido, Plaid, and Veriff, I’ve integrated their solutions into various business setups. Now, let’s break down similarities and differences of these KYC verification companies simply and straightforwardly.

Each platform provides diverse KYC options, such as document verification, address verification, and biometric verification using images or videos. The end goal for our clients is to ensure a smooth self-verification process tailored to specific verification parameters. 

Having worked with these solutions multiple times, I understand the nuances, and below, I provide the critical differences between them to help you choose the right fit based on the unique needs of your business.

Customization and User Experience

• Onfido. Stands out for its extensive customization options. It allows changes in elements from color to various other aspects, providing flexibility in tailoring the user experience. It offers third-party SDKs with a range of customizable features, such as fonts, colors, corner radius, and flow adjustments.
• Plaid. Lacks in customization compared to Onfido and Veriff. Plaid’s flexibility is limited, allowing changes only to the logo and the main color. The integration through the browser, while possible, may result in a less seamless user experience.
• Veriff. Similar to Onfido in terms of customization. It provides third-party SDKs that allow adjustments in fonts, colors, corner radius, and overall flow customization. Notably, Veriff offers the option to leave only face verification, providing a higher degree of customization.

Ease of Use

• Onfido and Veriff. Both provide a relatively similar user experience, with comprehensive customization options.
• Plaid. The integration through the browser may present a subtle difference, potentially causing a less seamless experience for users.

Security

• Plaid focuses on compliance for identity verification and fraud prevention, lacking specific certifications. In terms of enhanced security, Plaid uses behavioral analytics and risk checks.
• Veriff excels in obedience, meeting standards like CCPA/CPRA, GDPR, SOC2 type II, ISO 27001, and WCAG Accessibility Guidelines. Veriff ensures a secure digital environment through AI and human verification.
• Onfido is committed to regulatory standards with certifications such as ETSI TS 119 461 and eIDAS Regulation, and it holds a ‘high confidence’ rating in the UK Government’s Digital Identity Trust Framework. Onfido concentrates on proactive fraud detection with its Real Identity Platform powered by Atlas AI.

Summing Up

When selecting the ideal KYC as a service provider, consider the unique needs of your business. Onfido offers a proven track record and global scalability. Plaid excels in quick verification and advanced fraud protection. Veriff provides solid regulatory compliance and user-centric design. 

Evaluate the level of automation desired, international coverage, and specific compliance requirements to align with your business objectives. Ultimately, the right KYC provider is the one that seamlessly integrates into your processes, upholds regulatory standards and safeguards your business against fraud while delivering a smooth user experience.

If you’re overwhelmed with the complex world of KYC as a service integration and need a guiding hand, DashDevs is here for you. We have over 14 years of experience in integrating 70+ fintech providers for customers in the US, UK, EU, and MENA regions. Our team ensures your KYC process aligns with industry standards, guaranteeing regulatory compliance, safeguarding your business, and enhancing the overall customer experience. Contact our experts to find the best KYC provider for your business!