Reusable KYC: The Power of New Verified Credentials

Key Takeaways

Reusable KYC drastically reduces operational costs while enhancing user experience and regulatory compliance.

Didit offers free, unlimited KYC services with optional AML screening, revolutionizing identity verification.

Reusable KYC has diverse applications across industries, from finance to tourism, streamlining processes and improving security.

Implementing reusable KYC positions businesses at the forefront of digital identity innovation, preparing them for future opportunities.

Today, companies spend an average of $60 million on KYC compliance processes. But what if we told you there's a way to drastically reduce these operational costs? We're talking about reusable KYC, an efficient and secure solution that more and more companies worldwide are adopting every day.

This innovative advancement allows for streamlined onboarding of new customers, improved user experience, and ensured regulatory compliance. It's the power offered by reusable verified credentials.

In sectors such as finance, identity verification (KYC) and anti-money laundering (AML) processes are critical. However, from the users' perspective, they can be real headaches. In this situation, reusable KYC emerges as an efficient and secure alternative to traditional verification processes.

Through a single verification process, verified credentials are securely stored to be shared later with other trusted entities. This way, companies adopting these new systems can leverage the full potential of this technology. A development that improves security and regulatory compliance, and reinforces the urgent need for people to enjoy a solid, robust, and reliable digital identity.

What is Reusable KYC?

Reusable KYC is an identity verification process where a person's credentials, once verified, can be securely stored and shared with other trusted entities. This means that users don't need to go through the identity verification process (KYC) every time they want to access a new service or platform.

For companies, it also means a reduction in their processes: instead of performing multiple KYC verifications, organizations can rely on previously verified and validated credentials by other trusted entities. These credentials include information such as name, address, date of birth, identity documents, and are only shared with the explicit consent of the user.

Advantages of Reusable KYC over Traditional KYC

This new way of verifying users through reusable KYC offers numerous benefits compared to traditional KYC processes. For example:

1. Time and resource savings: With reusable KYC, companies can significantly reduce the time and resources dedicated to identity verification processes, as they can rely on credentials previously verified by other trusted entities.
2. Improved user experience: Users don't have to repeatedly go through the tedious verification process every time they want to access a new service. This improves the user experience and reduces dropout rates during the onboarding process.
3. Enhanced security and privacy: Reusable KYC uses advanced technologies to ensure the security and privacy of verified credentials. Users have greater control over their personal data and can decide at all times with whom to share it.
4. Simplified regulatory compliance: By relying on previously verified identity credentials, companies can simplify their regulatory compliance processes, such as identity verification (KYC) or subsequent anti-money laundering (AML) prevention.

How Does Reusable KYC Work? The Didit Case

Didit is a digital identity solution that offers companies a reusable KYC service. It works through a unique identity process, followed by secure storage of verified credentials and their subsequent sharing among trusted entities. As we've seen earlier, one of the main benefits is that it allows people to verify their identity once and reuse these credentials across multiple services, simplifying the onboarding process and improving security.

Unique Identity Verification Process

The process begins when a user performs an initial identity verification with Didit (through the Didit App or an external provider). This verification involves:

• A document verification, to check authenticity and accurately extract information.
• A facial recognition test, which ensures the person's presence and prevents deepfakes (passive liveness check). Additionally, it's compared with the user's documentation photo.

Once the identity verification is complete, a set of verified credentials representing that person's digital identity is generated.

Secure Storage of Verified Credentials

Verified credentials are securely stored, using encryption and data protection technologies. These credentials are stored in a standardized format, such as Verifiable Credentials (VC), which allows for their portability and independent verification. The best part? The user maintains control over their credentials through an identity wallet, such as the Didit App.

Sharing Credentials Among Trusted Entities

When a user needs to verify their identity with a new service, they can selectively share their verified credentials. This is how the process works:

1. The user receives a verification request from a service integrated with Didit.
2. The user authorizes Didit to share their verified credentials with the requesting service.
3. Didit sends the credentials to the service securely and encrypted.
4. The service verifies the authenticity of the credentials without needing to access the user's original documentation or repeat the KYC process.

If you have any more questions about how our reusable KYC solution works, you can check this section in our technical documentation.

Use Cases for Reusable KYC

This new reusable KYC approach can transform the way companies identify their customers' identities across different industries. Here are some of the most concrete use cases within different industries:

Tourism and Accommodations

• Early check-in for travelers: Hotels and accommodations can offer an early check-in service to travelers who already have their credentials verified. This improves the user experience, reduces queues, and lightens the workload of reception staff.
• Vehicle rental: Car rental companies can verify the identity and driver's license of their potential customers, streamlining the vehicle delivery process.

Telecommunications

• Quick onboarding for eSIM users: Operators can offer instant eSIM activation to users who have already completed their identity verification process, eliminating the need to visit a physical store or wait for manual verification. You can learn more about how eKYC helps eSIM operators here.
• Operator change: Users can request an operator change more easily, securely, and quickly, as their identity is verified.

Gaming Industry (Gambling)

• Instant age and identity verification: Online (or physical) gaming platforms can comply with age and identity verification regulations almost instantly, allowing new users to join with just one click.
• Fraud prevention: Reusable KYC helps prevent the use of false or stolen identities, protecting both users and gaming platforms.

Banks and Neobanks

• Quick and secure onboarding in neobanks: Digital banks can offer secure and reliable instant account openings to customers who have already completed their KYC with another entity (or the Didit App itself), reducing fraud and onboarding times. You can learn more about how identity theft affects the banking sector in this blog article.

These use cases are just the tip of the iceberg in terms of the potential of reusable KYC. As more industries adopt this technology, innovative applications that we haven't yet imagined are likely to emerge. The key lies in collaboration between sectors and the creation of a robust and reliable digital identity ecosystem. Companies that get ahead in adopting reusable KYC will not only improve their current processes but will also be better positioned to take advantage of future opportunities in the digital economy.

The Future is Now: Implement Reusable KYC in Your Organization

Reusable KYC is destined to become the industry standard for identity verification. This technology not only improves user experience but also strengthens security and ensures regulatory compliance more efficiently. For companies, this translates into more agile processes, reduced operational costs, and greater customer satisfaction.

At Didit, we understand the importance of robust and accessible identity verification. That's why we offer a reusable KYC service that goes beyond traditional solutions. Our commitment to security and accessibility has led us to offer free, unlimited, and forever KYC to all companies, with the additional option of AML screening.

Why do we do it? Because we firmly believe that in an era marked by identity fraud, deepfakes, and generative artificial intelligence, verifying people's identity and humanity should not incur a cost for companies. Our mission is to create a safer and more reliable digital ecosystem for everyone. You can read more about our motivation here.

Are you ready to take your organization's identity verification to the next level? Click on the banner below to discover how our reusable KYC solution and free identity verification can transform your processes and protect your customers. Implement the future of identity verification today with Didit.