Why a Global eID Hub is the Next Evolution in KYC

In the ever-evolving landscape of digital identity verification, businesses are constantly searching for robust solutions that balance security, compliance, and user experience. For businesses that have been exploring, or have worked with providers, such as Sumsub and Onfido, they will be aware of the strengths these established players bring to the table. 

However, the future of Know Your Customer (KYC) isn't just about individual verification methods; as regulation such as EIDAS 2.0 drives innovation and adoption of the EUDI wallet and other Verifiable Credentials based IDs. As these new methods increase - which they will do over the rest of 2025 and particularly in 2026, the complexity of KYC will only be increased, in turn. 

Already, some businesses are realizing that to overcome the complexity, the future of KYC will be about intelligent orchestration, interoperability, and the strategic embrace of eIDs. This is where a Global eID Hub, like Authologic’s, emerges, offering a next-generation approach that moves beyond individual solutions to a truly integrated and optimized verification ecosystem.

The Shifting Sands of KYC: From Point Solutions to Orchestration

For years, the go-to strategy for many businesses has been to stitch together multiple point solutions for different aspects of KYC. Additionally, these methods also require a high level of manual processes and maintenance. While this approach served its purpose, it has inadvertently led to a highly fragmented ecosystem - which will be even harder to sustain and scale as identity wallets and other Verifiable Credentials based IDs are added.

Consider the challenges:

• Multiple Integrations, Multiple Headaches: Each new vendor requires a separate integration, leading to increased development time, maintenance overhead, and a higher risk of technical debt. Poor technical documentation alone can increase implementation times by 40%.
  
• Data Inconsistency and Siloes: Different providers often yield non-standardized datasets, making it a significant undertaking for internal teams to normalize data for reviews, reporting and analysis.
  
• Rigid Workflows: Many businesses still rely on manual and/or rigid KYC flows. This lack of flexibility often results in either over-verification, leading to high customer dropout rates, or under-verification, exposing the business to fraud and fines. Up to 60% of businesses still rely on manual tasks, resulting in up to 50 days to complete a KYC review.
  
• Optimizing Services: A/B testing different verification methods is valuable, yet often out of reach due to procurement processes and strained internal resources. This lack of flexibility and speed can compromise a business’ competitive edge.

This fragmentation impacts not only operational efficiency but also the crucial customer onboarding experience. Research indicates the average customer onboarding time is 35 minutes, which is 2.8 times longer than users desire. This disconnect can increase the risk of customer drop-off by up to 38%.

The Rise of the Global eID Hub: A Holistic Approach

Enter the global eID Hub – an innovative solution designed to address regulatory and complexity head-on. The global eID Hub acts as a central orchestration layer, consolidating multiple verification methods, including government-issued electronic IDs (eIDs) and identity wallets, traditional document and biometric checks, open banking data, and more.  

Key Benefits of the Global eID Hub:

1. Simplified Interoperability and API Simplicity: Imagine a single API integration that grants your business access to a multitude of verification methods from various providers. Businesses can drastically reduce integration times and allow for faster deployment and customization based on specific business needs. This means existing verification processes can be enhanced with eIDs from multiple geographies, all through one robust connection.
   
   
2. Comprehensive eID Support: Electronic IDs are rapidly gaining traction globally, with Europe leading the way. Countries like Poland, Italy, and Denmark have seen remarkable adoption rates, with 4 in 5 Poles already using digital IDs via their mObywatel app. eIDs offer enhanced security through cryptographic protection, reduced vulnerability to AI-fraud, faster verification, and improved user experience. The global eID Hub aggregates and orchestrates eIDs alongside traditional verification methods. This ensures businesses are compliant with evolving regulations like EIDAS 2.0 in Europe, while also providing a pathway for seamless integration of nascent eID initiatives in regions like the UK and Americas.
   
   
3. Modular Workflows for Adaptive Verification: The "one-size-fits-all" approach to KYC is obsolete. The global eID Hub enables highly customizable, modular workflows. This means businesses can adjust verification requirements based on user or risk profiles. For example, a low-risk transaction might only require a simple eID verification, while a high-value account opening could trigger a comprehensive workflow including eID, liveness detection, and open banking data. This dynamic, orchestrated approach not only optimizes the user journey but also helps mitigate fraud and ensure compliance without unnecessary friction.
   
   
4. Actionable Analytics and Reporting: the global eID Hub normalizes data from all verification methods, enabling reporting and analytics. This allows businesses to monitor key performance indicators such as conversion rates during onboarding, average verification completion time, false positive/negative rates, and more. This consolidated intelligence helps businesses identify bottlenecks, A/B test different methods and workflows, and continually optimize your KYC processes for maximum efficiency and conversion.
   
   
5. Combating Emerging Threats: AI-Powered Fraud: With the rise of AI, identity fraud has become more sophisticated. Synthetic identities and AI-generated deepfakes pose significant threats, with global losses from synthetic ID fraud estimated between $20 to $40 billion (Source: Thomson Reuters). An eID Hub, by integrating robust eID verification and combining it with advanced liveness detection and biometric analysis, offers a stronger defense against these evolving threats, ensuring that only legitimate users gain access to your services.

Authologic: Your Partner in the Next Evolution of KYC

While there are companies who have established themselves as leaders in specific verification domains, Authologic offers a fundamental shift in how businesses approach KYC. We're not just another verification provider; we've built a comprehensive, global eID Hub that aggregates and orchestrates a diverse array of verification methods, from traditional to eIDs, helping customers to optimize their KYC today, and to future-proof their business ahead of impactful changes, such as EIDAS 2.0.

Authologic's approach allows you to:

• Mitigate AI-driven fraud risks by seamlessly integrating eIDs either as stand-alone solutions, or with other robust verification methods.
  
• Stay ahead of regulatory changes with automatic updates within the Hub.
  
• Overcome the fragmentation challenge through aggregation, orchestration, and data standardization.
  
• Centralize KYC management, enabling quick A/B testing, automation, and reduced manual checks.

With Authologic, customers are seeing up to a 60% increase in conversion rates and significantly reduced failed checks and manual work. This demonstrates the tangible impact the global eID Hub can have on both security and customer experience.

If you're looking to elevate your strategy, it's time to look beyond the conventional and embrace the next evolution in KYC.

Contact us to find out more.

Reference sources:

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