Identity verification and anti-money laundering (AML) solution provider Youverify, hailing from Nigeria, has recently clinched a $2.5 million investment from Elm, a Saudi Arabian company that delivers both standardized and bespoke digital solutions to governmental and non-governmental entities.
The financial boost in the form of a pre-Series A round from Elm comes coupled with a strategic partnership designed to enhance Youverify’s AML compliance process for companies, sharpen its global risk intelligence capabilities, and facilitate growth into new territories.
In the span of a year, Youverify has stretched its instant corporate verification network over 145 jurisdictions in a total of 48 countries. The platform also caters to instant personal verification services, including insights on credit history and national identity figures, in 46 nations. Founder and CEO Gbenga Odegbami launched Youverify in 2018 and revealed in a discussion with TechCrunch that the startup surpassed its expansion goal from its 2022 seed extension round—to hit 30 African countries.
However, at present, Youverify is actively servicing commercial clients in only 12 countries. Nonetheless, it manages 4 million applications monthly for upward of 3,500 businesses with an active client registry totaling 800—a noteworthy ascent from 400 businesses and 5 million annual applications as logged in 2022. Meanwhile, its ID verification capacity which ranged over 400 million individuals has rocketed to 5 billion. Moreover, it now covers 600 million companies spread across sectors such as gaming, healthcare, telecom, and travel.
“Through Youverify, individuals and enterprises can authenticate their identity, registering status, and ownership via government data. This mechanism surpasses the common OCR-based KYC verification which leans on image recognition technology to validate presented IDs. We also inaugurated our anti-money laundering and risk classification services to cater to these sectors,” said the CEO.
“Our risk assessment system identifies the AML and financial risks that clients may pose to our customers. We harvest data from a plethora of credible sources such as government sanctions lists, global media sentiment, country risk evaluations, and commercially available information to guide AML risk-related decisions,” he added.
The CEO further expounded on the use of established mathematical models and AI to scrutinize and compute risk levels, eventually generating regulatory reports catered for overseers in various countries. Other similar service providers in this domain include Smile Identity, Dojah, and Identitypass.
An upsurge in digital financial movements throughout Africa has caught regulatory bodies’ eyes. Forecasts show that digital payment mediums may process up to $116 billion within a single year, intensifying the need for robust frameworks to curb identity fraud and scams. This urgency has brought about a heightened necessity for clear financial directives and improved strategies for AML and Know Your Customer (KYC) adherence powered by regulatory tech (regtech). This global trend is expected to resonate within Africa as the local appetite for regtech solutions escalates.
Teamwork with rule-makers across numerous markets has enhanced Youverify’s skills in compliance and cross-cultural dealings, proficiencies that enable the enterprise to tailor its offerings to various business scenarios. These competencies highlight the escalating universal need for governance, risk management, and compliance (GRC) offerings—a sector now exceeding an annual worth of $57 billion.
“Our alliance with Youverify represents our commitment to employing technology to address the significant hurdles confronting today’s enterprises,” expressed Fahad bin Issa Ibrahim Al-Shathry, Elm Investment’s VP. “This partnership affirms our resolve to invest in a burgeoning tech ecosystem not solely within the Kingdom of Saudi Arabia, but across the globe to amplify effectiveness, security, and reliance.”
FAQ Section
- What services does Youverify provide?
- What was the purpose of Youverify’s recent funding?
- How many countries does Youverify offer services in?
- Who are the other players in the identity verification and AML space?
- Why is AML compliance becoming increasingly important in Africa?
Youverify offers identity verification and anti-money laundering solutions that go beyond simple OCR-based KYC, utilizing government data for personal and business verification.
The $2.5 million investment is aimed at reinforcing AML compliance, supporting Youverify’s expansion into new markets, and enhancing global risk intelligence services.
Youverify has expanded its verification coverage to 145 jurisdictions over 48 countries, actively serving commercial clients in 12 of those countries.
Competitors in this industry include Smile Identity, Dojah, and Identitypass.
The significant growth in digital payments in Africa has resulted in the need for stricter measures to prevent identity theft and fraud, requiring the adoption of robust AML and KYC processes.
Conclusion
The recent funding achievement by Youverify attests to the burgeoning need for sophisticated identity verification and AML solutions in Africa and beyond. Collaboration between technology innovators and regulators plays a crucial role in mitigating the risks associated with digital financial transactions and adapting to the emergent regtech demands. With the support from Elm and the expansion of their services, Youverify is poised to contribute significantly to the security and trust in the financial services sector, indicating the company’s potential for a larger impact in the GRC market space.