Yoti to work on ‘innovative form of KYC’ in FCA sandbox

Yoti, a digital identity app, said it will be working within the Financial Conduct Authority sandbox with Worry+Peace, an InsurTech startup.

The two companies will work together to test consumer’s appetite for an innovative form of KYC, which lets people prove their identity using Yoti’s digital identity app according to the startup.

Individuals will be able to prove their identity in seconds using the free Yoti app, without having to rely on paper documents. Companies can benefit from fast and accurate KYC, as well as save time and money when verifying the identities of their customers. Yoti says it want to demonstrate a ‘data minimisation approach to KYC’, encouraging firms to only request the details they actually need from their customers, which is both compliant and better for individuals.

“We’re really excited to be working with Worry+Peace, a dynamic new brand that wanted to be the first insurance company to adopt a more data minimised approach to meet their KYC requirements. We hope that in the long term this will become the norm; making it easier and more secure for customers to prove their identity to businesses.” said John Abbott, director of business growth and partnerships.

Founded in 2014, Yoti is a app which transforms an individual’s paper ID document and biometrics into a secure digital identity. Users take a selfie and scan their passport with their smartphone, which is then transformed into a digital identity. It uses advanced hybrid encryption to secure user details and puts individuals in control of their data – people know exactly what details they share and who with, instead of disclosing their full identity with a paper ID document.

In December, the FCA revealed the next round of successful firms in its regulatory sandbox, which included Yoti Barclays, Nationwide, First Direct and Solidi. The FCA sandbox allows firms to test innovative products, services or business models in a live market environment, while ensuring appropriate protections are in place.

While last month, the UK-headquartered startup set up operations in India, with the opening of an office in Mumbai. As part of the move, Yoti was reported to be partnering with the Unique Identity Authority in India, the external affairs ministry’s passport department and a few banks to help with the ID verification of applicants.

Copyright © 2018 FinTech Global

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