Digital identity verification provider Smile Identity has revealed 2022 Know Your Customer findings.
The publication reportedly uses data from 50 million KYC checks across industries to give an overview of current KYC trends, policies, and best practices in Africa.
Although Africa faced economic challenges in 2022, the continent saw continued investment in technology emphasizing the significance of digital identity.
As companies prepare for a potential 2023 global recession, they aim to maximize profits and growth while using limited capital.
The firm argues for the importance of customized onboarding procedures. For instance, by working closely with ID authorities and clients, the company has achieved great success rates while preventing fraud, protecting user data, and complying with new data privacy regulations.
Smile Identity adds that fraud rates stabilized in H2 2022 due to increased security measures in online spaces, stronger KYC checks, and more cautious marketing strategies in the face of economic difficulties.
African countries are also upgrading their ID infrastructure to harmonize data, reduce fraud, enhance service delivery, and increase accessibility.
Summary
Fraud rates reached an all-time high of 28% in 2022, despite stabilizing in the second half of the year.
Common forms of ID fraud include face mismatches and the use of stolen ID numbers.
An average of 50% of fraud goes undetected with textual KYC alone.
Biometrics combined with ID verification are the best baseline KYC.
94 million Nigerians have already registered biometrics as part of the National Identity Number (NIN), leading the way in digital ID adoption in Africa.
Other African nations like Uganda and Kenya are in the midst of implementing similar digital ID programs.
For more details about the report, you can download it here for your consumption.
Quotes
“At Smile Identity, our mission is to make it safe and easy for anyone to prove their identity online. To achieve this, we are building infrastructure to onboard and secure Digital Africa,” said Mark Straub, CEO of Smile Identity. “Our products help pave honest paths for success, and we are proud to have played a role in helping businesses across the continent achieve their goals in 2022.”
