Checku Case:
Learn how CheckU sped up customer verification process and more than doubled profit of a crypto-currency exchange service.
A crypto currency exchange service faced a challenge of new coming clients verification. Influx of customers created heavy workload for verification department and the average processing time for new customers (according to AML and KYC requirements) took more than a week.

After integrating our online identity verification solution CheckU, the crypto currency exchange service reduced the processing time down to several minutes.

Recently, it seems that everybody is going crazy over crypto economy: you hear words "crypto currency", "blockchain" and "crypto exchange" all the time. But crypto market is not reduced to the use of blockchain alone. Read below how crypto exchanges increase customer loyalty and profits by using CheckU for user verification.

According to the legislation, crypto currency exchanges must verify their clients to observe the KYC (know your customer)* and AML (anti money laundering)** directives. Typically, this involves requesting the following ID documents from customers:

  • Proof-of-Identity: passport, driver's license or ID card
  • Proof-of-Address: utility bill, rental agreement or residence registration

The main objective of the person's identity verification process is to establish that the user is the person he/she claims to be and not a scammer using fake documents to commit illegal acts.
Before CheckU integration:
The operator in the client verification department received the set of documents for customer verification, including:

  • Scanned or photographed government issued ID document
  • Documents proving the residential address
  • Additional information provided by the client

After a forensic examination*** of digital documents, the operator compared the customer's data across the documents. Based on the received information the operator then decided whether the customer was in fact the person he/she claimed to be.

With this approach, identity verification process of one customer took more than a week as the operators couldn't keep up with the workload due to the considerable number of new clients and applications waiting to be processed.

Another downside of manual identity verification is doubt: what if it is a fake? If the operator had a slightest suspicion, the customer application was blocked. As a result, more than half of applications were discarded. Customers had to provide additional documents for verification and get back to the end of the queue.
After CheckU API integration for identity verification:
Crypto currency exchange service using API CheckU connects to an online identity verification service, where it redirects all applications from customers. Each application undergoes 3 steps:

  • Filter that separates the ID document from other pictures
  • Algorithm that detects document fraud based on 65 special triggers
  • Module that matches the face in passport or ID with photo of the person providing it

After the CheckU API integration the average identity verification time for a new customer only took 2-3 minutes, which is multiple times faster than the manual identity verification process, while the number of discarded applications is now only 3-4%, as the solution algorithms help accurately sort out suspicious documents from the real ones.
To sum up:
  • Number of rejections has decreased from 50% to 3-4%
  • Workload has significantly decreased and the processing time for new applications dropped from one week to 2-3 minutes
  • Daily deposit amounts from newly verified customers have more than doubled
  • Customer loyalty of the crypto exchange service has reached all-time high :)

* Know your client (KYC) — is the process of a business identifying and verifying the identity of its clients before making a financial transaction (applies to financial institutions, bookmakers and other businesses working with private clients).

** Anti-money laundering (AML) — is a term mainly used in the financial and legal industries to describe the legal controls that require financial institutions and other regulated entities to prevent, detect, and report money laundering activities.

*** Digital forensics — is a branch of forensic science encompassing the recovery and investigation of material found in digital devices, often in relation to computer crime.

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