Today’s fast-changing digital environment requires identity verification and proper KYC. Organizations and enterprises need verified data to function efficiently.
Because many Africans lack official identities, this is especially true. 57% of Africans don’t have a bank account, not even mobile money, according to the World Bank. Half of the world’s undocumented population lives in Africa.
Financial institutions, governments, and KYC corporations need ID. This is part of “Know Your Customer” (KYC) rules and anti-fraud procedures that promote digital market trust. Trust is essential for digital market growth.
Africa is generating new ideas due to this significant issue. Tech startups are transforming KYC and identity verification. To enable online banking, government programs, and business, these firms aim to close the identity gap.
We will examine Africa’s eight top identity verification and KYC startups, which assist enterprises, governments, and organisations in managing and identifying consumers and reducing fraud by following KYC protocols.
Read also: Fidelity Bank blocks transfers to OPay, Moniepoint, and Palmpay over KYC concerns
VerifyMe, Nigeria
In 2013, Olutunji Oluwole founded Verifyme as a biometric enrollment and data capture provider. In 2017, it received an identity verification license. Nigeria, Africa’s most populous nation, needs fraud detection urgently.
VerifyMe allows banks to open accounts contactless and provide credit scores for loan approval using facial recognition technology.
As the first Nigerian identification startup to directly access government data sources like the NIMC, CBN, BVN, and FRSC, VerifyMe was able to do so.
As led by Esigie Aguele, VerifyMe’s unique address verification service, Verifind, is a robust location verification solution in Nigeria. 4D GIS geotagging and over 30k last-mile verification agents nationwide support it. Additionally, its OneIdentity report uses Nigeria’s largest employment history database to help employers know their employees.
The startup also provides identification, address, employee, staff, enrollment, and guarantor verification. The startup raised $5 million.
iiDENTIFii, South Africa
Gur Geva and Marco Wagener founded iiDENTIFii in 2018 to deliver cutting-edge identity verification solutions for Africa’s diversified needs.
The company helps businesses and organisations securely and effectively determine the identity of their customers by providing a range of services, from document verification to facial recognition.
Financial institutions, government organisations, and various enterprises use the platform to comply with KYC laws and prevent fraud.
The company is accredited by NIST, ISO, GDPR, Whistle Blowers, Risk X, and the ICO.
Smile ID, Nigeria
Smile ID is an African identity verification firm founded by Mark Straub in 2017. The company provides real-time digital KYC, identity verification, and user authentication on the continent without universal IDs.
Smile Identity offers African-specific face detection, verification, and deduplication using machine learning and AI. Despite its US origins, the company’s concentration on Africa’s identity verification needs makes it an essential and innovative participant.
Smile Identity includes 250,000,000 identities and 15 ID kinds in Africa and has raised over $31,000,000. The company claims over one million identification checks per month. Costanoa Ventures, Future Africa, PTB Ventures, Khosla Impact, 500 Startups, CRE Venture Capital, and others fund it.
Identitypass, Nigeria
IdentityPass was founded in 2021 by Lanre Ogungbe, Niyi Adegboye, and David Obi to improve digital compliance and security in Africa. As identity theft becomes more common, this firm helps businesses verify consumer identities.
FinTech, insurance, mobility, e-commerce, HR management, cryptocurrency, and other brands use the Nigerian startup. In Nigeria, Kenya, Ghana, and South Africa, IdentityPass is available.
The firm has raised $3.2 million from Midlothian Angel Network, D Global Ventures, Co-Creation Hub Nigeria, and others. The Nigerian Ministry of Information and Communication Technology uses it for its “3 Million Technical Talent Program (3MTT).”
Identitypass was voted Fastest Growing KYC and Verification Company of the Year at the 2022 BusinessDay Nigerian Business Leadership Awards.
YouVerify, Nigeria
In 2017, Gbenga Odegbami established YouVerify. Youverify, an identity verification and data management firm, automates KYC and AML compliance choices for organisations.
Youverify compares a user’s identity paper to their face biometrics using AI. This information can be verified against over 300 local and global databases. Under 48 hours, YouVerify and over 20,000 field verification officers verify Sub-Saharan African addresses.
The solutions include identity verification, address verification, background checks, knowing your customers, business, employees, transactions, workflow automation, fraud detection, and transaction monitoring.
YouVerify OS, vForms, and YOUID are its products.
Youverify raised $2.5M.
ThisIsMe, South Africa
In 2013, David Thomas, Juan Furmie, and Nadeem Shahid created the South African KYC and identification startup ThisIsMe. The organisation provides identification verification and onboarding.
They identify persons in real time using reliable worldwide sources, biometrics, and social media. The company verifies incorporation, financial licenses, creditworthiness, and more for corporate and business entities.
ThisIsMe helps organisations eliminate fraud, automate KYC checks, improve onboarding, and increase revenue while providing on-demand, seamless client service. They simplified onboarding and KYC for Old Mutual, Stanlib, Sanlam, Marriot, and BET.co.za.
The company raised $2.5 million in all fundraising rounds.
Read also: KYC requires bank clients’ social media handles
Ghana’s Bace Group
Arinze Christopher, Charlette Desire, Jean Cedric Attiembonon, and Samuel Sowah Mensah launched BACE Group Ghana in 2018. Our KYC and identity verification system allows financial institutions and businesses to perform due diligence using facial recognition.
These APIs secure client identity and KYC data with OCR and facial recognition technology, transforming the user experience.
Users take a selfie and compare it to their ID to authenticate their identity. Companies can configure their identification checks using the company’s API.
The platform processes data using artificial intelligence, making verification more robust and efficient.
The startup has raised $100K. Meltwater Entrepreneurial School of Technology invests in BACE Group.