Veriff Takes 'Human on the Loop' Approach to ID Verification

In an interview with FinTech Magazine, Veriff discusses its approach to identity verification in an increasingly complex digital landscape.

The identity verification company has developed what it calls a "human on the loop" verification system, departing from traditional human-in-the-loop models to address mounting concerns about online fraud and synthetic identity creation.

"We've reached a point on the internet that we don't believe if things are true unless proven by a reliable source," explains Kaarel Kotkas, CEO of Veriff. "We can't have single solutions. We need to have a multilayered approach to stay a step ahead of these issues."

Balancing automation with human oversight

The verification specialist's approach involves multiple automated checks with human specialists providing feedback on cases where the decisioning engine lacks sufficient confidence. This method aims to combine the efficiency of automated systems with the nuanced judgment that human reviewers can provide.

"Humans are creative and able to explore different avenues," Kotkas notes, emphasising the importance of maintaining human involvement in the verification process even as technology advances.

The company's strategy reflects broader industry concerns about sophisticated fraud attempts, particularly as artificial intelligence tools become more accessible and capable of generating convincing synthetic identities.

Streamlining customer onboarding

Beyond fraud prevention, Veriff's technology focuses on reducing friction in customer onboarding processes. The company works with digital banks and financial services providers to extract information from identity documents, reducing the amount of manual data entry required from customers.

Kotkas highlights the approach taken by UK challenger bank Monzo, which has integrated identity verification early in its customer journey. "They're able to understand who is that person coming on board, but they can also leverage ID verification to extract name and address fields," he explains. "This means people need to type in fewer signup forms and have a shorter onboarding flow as well."

This dual benefit of enhanced security and improved user experience represents a key value proposition for financial technology companies, which must balance regulatory compliance with customer satisfaction in competitive markets.

"What we've seen from those great companies like Monzo, who focus on driving the best user experience, is that the verification step takes place quite early in the process," Kotkas says.