KYC
- Nikita Vodolazkyi (Unlicensed)
Internal Marionette
UX
The KYC (Know Your Customer) process is an essential component of any fintech software platform. It ensures compliance with regulatory requirements and helps mitigate risks associated with fraud and financial crimes. This technical document outlines the flow of the KYC process within the fintech software, focusing on email verification, phone number verification, and identity verification.
Email Verification:
Upon user registration, the first step in the KYC process is email verification. This step ensures that the user provides a valid email address and has access to it. The flow for email verification is as follows:
User registers with their email address.
Fintech software sends a verification email to the provided email address.
The user receives the verification email and clicks on the verification link.
Fintech software validates the link and confirms the email address.
Phone Number Verification:
After email verification, the next step is phone number verification. This step adds an extra layer of security and ensures that the user's phone number is valid. The flow for phone number verification is as follows:
The User enters their phone number after email verification.
Fintech software sends a verification code via SMS or automated phone call to the provided phone number.
A User receives the verification code and enters it into the fintech software.
Fintech software verifies the code and confirms the phone number.
Identity Verification:
Once email and phone number verification are completed, the final step in the KYC process is identity verification. This step involves verifying the user's identity using official identification documents. The flow for identity verification is as follows:
A User initiates the identity verification process within the fintech software.
The User completes the verification form by providing all the information required for identity verification. This includes filling in fields for their first name, last name, country of residence, full address, postcode, and date of birth. Each piece of information is crucial for accurately verifying the user's identity. Once the form is filled out with all the required details, it is submitted for review.
The User provides relevant identification documents such as a driver's license, passport, or national ID card.
Fintech software utilizes manual review processes to authenticate the provided documents.
Internal Verification Decision:
Upon completion of the identity verification process, the Administrator decides the user's verification status:
Verified Status: If the verification process is successful and the provided documents and selfie pass the verification checks, the user is granted a verified status. Additionally, their withdrawal restriction level is elevated from zero to the first level, allowing them to access higher withdrawal limits and privileges within the platform.
Not Verified Status: In the event of a failed verification, the user's status remains as "Not Verified." Their withdrawal restriction level remains at zero, limiting their access to withdrawal features and privileges within the platform until they complete the verification process.
Banned Status: In certain cases where there is evidence of fraudulent activity, suspicious behavior, or violation of platform terms and conditions, the user may be assigned a "Banned Status." This status prohibits the user from accessing any platform features and services. Additionally, the user's account may be suspended or terminated, and appropriate actions may be taken as per the platform's policies and regulatory requirements
Admin Panel
KYC Waiting (sub-section)
The KYC Waiting sub-section allows the admin to review KYC information and documents submitted by the User that are pending admin verification. The first 2 levels, phone and email verification, are automated. Personal identifying information must be uploaded by the User and the review process is manual by the Admin.
"+" (button): expands user information and allows the admin to see the user's First Name, Last Name, Date of Birth, Address, City, Country, Postcode, and submitted Document(s)
ID: user ID assigned to the registered user
Email: email address of the registered user
Accept (button): accept the submitted document and the User`s info provided
Reject (button): reject the submitted document and the User`s info provided
Ban: ban the user and document they submitted for identity verification
Document Name: pressing the Document Name defined by the User at the time of document upload opens the document and allows the admin to click, rotate, and zoom on different parts of the document
General (tab): tab section with general user overview and the following admin capabilities:
Email Verified: current status with toggle enable or disable verification status for user email
Phone Verified: current status with toggle enable or disable verification status for user email
Profile Verified: current status with toggle enable or disable verification status for user profile
The main conditions for the administrator and the KYC (Know Your Customer) flow are as follows:
Verification Process:
The verification process progresses step by step, starting with email verification, followed by phone verification, and concluding with identity verification. This sequential approach ensures a thorough and systematic validation of the user's identity.
Unverification for a User: the administrator must follow a specific sequence - identity verification is revoked first, followed by phone verification. However, email verification cannot be undone if it has already been verified.
Withdrawal Restriction Level:
After successful identity verification, the user's withdrawal restriction level is adjusted from zero to the first level. This transition signifies that the user has completed the necessary steps to confirm their identity, thereby warranting a higher level of trust and access within
KYC (tab): tab section with User KYC details and see the following admin capabilities:
State: displays user status as Not Verified / Pending / Verified
First Name: see first name
Last Name: see last name
Date of Birth: see date of birth
Address: see street address
City: see city
Country: see country
Postcode: see postal code
Document Review: documents uploaded by the user are listed on the right section of the KYC tab with corresponding names. Admin can open each in dropdown, click on the document to zoom in on various parts of the document, and rotate the document
Sum Sub Integration (Mobile SDK)
UX
Email Verification:
User registers with their email address.
Fintech software sends a verification email to the provided email address.
The user receives the verification email and clicks on the verification link.
Fintech software validates the link and confirms the email address.
Phone Number Verification:
A User enters their phone number after email verification.
Fintech software sends a verification code via SMS or automated phone call to the provided phone number.
The User receives the verification code and enters it into the fintech software.
Fintech software verifies the code and confirms the phone number.
Identity Verification:
Once the email and phone number verification steps are completed, the final phase of the KYC process involves identity verification. This stage is crucial for confirming the user's identity through official identification documents. The flow for identity verification is detailed below:
Web:
A. User Initiates Request: The user initiates the identity verification process by requesting within the web platform.
B. Download Mobile App: To proceed with identity verification, the user is prompted to download the platform's mobile app. This can be done either by clicking on a provided link or scanning a QR code using their smartphone. The link or QR code directs the user to the respective platform's app store (Google Play Store for Android or Apple Store for iOS), where they can download and install the mobile app.
Mobile:
A. User Requests Identity Verification: Upon successfully installing the mobile app, the user can now proceed with the identity verification process within the app.
B. Upload Document Photos: The user uploads photos of their official identification documents through the mobile app. These documents typically include a driver's license, passport, or national ID card. Once uploaded, the documents undergo verification by the platform's system.
C. Upload Selfie: After the document verification process, the user is prompted to upload a selfie. This selfie is compared to the photo on the uploaded identification document to ensure consistency and further validate the user's identity.
Sum Sub Verification Service Decision:
Upon completion of the identity verification process, the SumSub service decides the user's verification status:
Verified Status: If the verification process is successful and the provided documents and selfie pass the verification checks, the user is granted a verified status. Additionally, their withdrawal restriction level is elevated from zero to the first level, allowing them to access higher withdrawal limits and privileges within the platform.
Not Verified Status: In the event of a failed verification, the user's status remains as "Not Verified." Their withdrawal restriction level remains at zero, limiting their access to withdrawal features and privileges within the platform until they complete the verification process.
Banned Status: In certain cases where there is evidence of fraudulent activity, suspicious behavior, or violation of platform terms and conditions, the user may be assigned a "Banned Status." This status prohibits the user from accessing any platform features and services. Additionally, the user's account may be suspended or terminated, and appropriate actions may be taken as per the platform's policies and regulatory requirements
This comprehensive identity verification process, involving mobile platforms, ensures the security and integrity of the KYC process, ultimately fostering trust and compliance within the FinTech platform.
Admin Panel
KYC Waiting (sub-section)
In the KYC (Know Your Customer) process, the concept of "KYC Waiting" typically refers to a status where users are in a queue or awaiting review for their identity verification. However, in the context of platforms utilizing the SumSub service for verification, the KYC Waiting status may not exist or may have a different interpretation. This is because the SumSub service plays a significant role in deciding which users pass verification, rather than users being placed in a waiting queue for manual review by platform administrators.
Explanation:
Automated Verification Process: The SumSub service utilizes advanced algorithms and automated verification checks to assess user-provided documentation and information. This process aims to streamline and expedite the verification process by minimizing manual intervention.
Real-time Decision Making: Upon submission of verification documents and information by users, the SumSub service promptly evaluates the data and makes real-time decisions regarding the verification status of each user. This eliminates the need for users to wait in a queue for manual review by platform administrators.
Instant Feedback: Users receive immediate feedback on their verification status based on the decision made by the SumSub service. This feedback typically includes whether the verification was successful (verified status) or unsuccessful (not verified status).
Absence of Waiting Status: Due to the automated and real-time nature of the verification process facilitated by the SumSub service, there may be no users with a specific "waiting" status within the platform. Instead, users proceed directly to either a verified or not verified status based on the outcome of the SumSub verification.
Efficiency and Transparency: The absence of a waiting status signifies the efficiency and transparency of the KYC process, as users receive prompt and clear feedback regarding their verification status without experiencing delays associated with manual review queues.
Overall, while the concept of KYC Waiting may not apply directly in platforms utilizing the SumSub service, the automated verification process ensures that users receive timely and accurate verification outcomes, contributing to a seamless and efficient KYC experience.
General (tab): tab section with general user overview and the following admin capabilities:
Verification Process:
The verification process progresses step by step, starting with email verification, followed by phone verification, and concluding with identity verification. This sequential approach ensures a thorough and systematic validation of the user's identity.
Unverification for a User: the administrator must follow a specific sequence - identity verification is revoked first, followed by phone verification. However, email verification cannot be undone if it has already been verified.
Withdrawal Restriction Level:
After successful identity verification, the user's withdrawal restriction level is adjusted from zero to the first level. This transition signifies that the user has completed the necessary steps to confirm their identity, thereby warranting a higher level of trust and access within
KYC (tab): tab section with User KYC details and see the following admin capabilities:
After successful identity verification by the Sum Sub service, the system automatically records and stores the user's information along with the uploaded documents. This stored data enables the administrator to review the user's information conveniently within the KYC (Know Your Customer) tab of the user's details page.
By accessing the user's details page and navigating to the KYC tab, the administrator gains visibility into the verified user's information, including:
Personal Details: Such as the user's name, address, date of birth, and nationality.
Document Details: Information extracted from the uploaded identification documents, including document type, number, and expiration date.
Verification Status: Confirmation of the user's verification status (verified or not verified) as determined by the SumSub service.
Uploaded Files: Access to view the documents uploaded by the user during the verification process, which may include scanned copies of their identification documents and selfies.
This centralized location within the administrator interface streamlines the review process, allowing administrators to efficiently assess the accuracy and completeness of the user's information. Additionally, it serves as a reference point for compliance monitoring and regulatory reporting purposes, ensuring that the platform maintains adherence to applicable regulations and standards.
See more about Mobile SDK integration: About MobileSDK
Sum Sub Integraion (API)
UX
Email Verification:
User registers with their email address.
Fintech software sends a verification email to the provided email address.
The user receives the verification email and clicks on the verification link.
Fintech software validates the link and confirms the email address.
Phone Number Verification:
A User enters their phone number after email verification.
Fintech software sends a verification code via SMS or automated phone call to the provided phone number.
The User receives the verification code and enters it into the fintech software.
Fintech software verifies the code and confirms the phone number.
Identity Verification:
Once email and phone number verification are completed, the final step in the KYC process is identity verification. This step involves verifying the user's identity using official identification documents. The flow for identity verification is as follows:
A User initiates the identity verification process within the fintech software.
The User completes the verification form by providing all the information required for identity verification. This includes filling in fields for their first name, last name, country of residence, full address, postcode, and date of birth. Each piece of information is crucial for accurately verifying the user's identity. Once the form is filled out with all the required details, it is submitted for review.
The User provides relevant identification documents such as a driver's license, passport, or national ID card.
After the user provides all required data, the FinTech platform redirects this information to the SumSub service for identity verification. The SumSub service then utilizes advanced algorithms and verification checks to assess the provided data and make a decision regarding the user's identity verification status. This process involves analyzing the submitted documents, verifying their authenticity, and cross-referencing the information provided by the user to ensure compliance with regulatory requirements and platform standards. Once the verification process is completed, the SumSub service communicates the outcome back to the FinTech platform, indicating whether the user's identity has been successfully verified or not.
Sum Sub Verification Service Decision:
Upon completion of the identity verification process, the SumSub service decides the user's verification status:
Verified Status: If the verification process is successful and the provided documents and selfie pass the verification checks, the user is granted a verified status. Additionally, their withdrawal restriction level is elevated from zero to the first level, allowing them to access higher withdrawal limits and privileges within the platform.
Not Verified Status: In the event of a failed verification, the user's status remains as "Not Verified." Their withdrawal restriction level remains at zero, limiting their access to withdrawal features and privileges within the platform until they complete the verification process.
Banned Status: In certain cases where there is evidence of fraudulent activity, suspicious behavior, or violation of platform terms and conditions, the user may be assigned a "Banned Status." This status prohibits the user from accessing any platform features and services. Additionally, the user's account may be suspended or terminated, and appropriate actions may be taken as per the platform's policies and regulatory requirements
This comprehensive identity verification process, involving mobile platforms, ensures the security and integrity of the KYC process, ultimately fostering trust and compliance within the FinTech platform.
Admin Panel
KYC Waiting (sub-section)
In the KYC (Know Your Customer) process, the concept of "KYC Waiting" typically refers to a status where users are in a queue or awaiting review for their identity verification. However, in the context of platforms utilizing the SumSub service for verification, the KYC Waiting status may not exist or may have a different interpretation. This is because the SumSub service plays a significant role in deciding which users pass verification, rather than users being placed in a waiting queue for manual review by platform administrators.
Explanation:
Automated Verification Process: The SumSub service utilizes advanced algorithms and automated verification checks to assess user-provided documentation and information. This process aims to streamline and expedite the verification process by minimizing manual intervention.
Real-time Decision Making: Upon submission of verification documents and information by users, the SumSub service promptly evaluates the data and makes real-time decisions regarding the verification status of each user. This eliminates the need for users to wait in a queue for manual review by platform administrators.
Instant Feedback: Users receive immediate feedback on their verification status based on the decision made by the SumSub service. This feedback typically includes whether the verification was successful (verified status) or unsuccessful (not verified status).
Absence of Waiting Status: Due to the automated and real-time nature of the verification process facilitated by the SumSub service, there may be no users with a specific "waiting" status within the platform. Instead, users proceed directly to either a verified or not verified status based on the outcome of the SumSub verification.
Efficiency and Transparency: The absence of a waiting status signifies the efficiency and transparency of the KYC process, as users receive prompt and clear feedback regarding their verification status without experiencing delays associated with manual review queues.
Overall, while the concept of KYC Waiting may not apply directly in platforms utilizing the SumSub service, the automated verification process ensures that users receive timely and accurate verification outcomes, contributing to a seamless and efficient KYC experience.
General (tab): tab section with general user overview and the following admin capabilities:
Verification Process:
The verification process progresses step by step, starting with email verification, followed by phone verification, and concluding with identity verification. This sequential approach ensures a thorough and systematic validation of the user's identity.
Unverification for a User: the administrator must follow a specific sequence - identity verification is revoked first, followed by phone verification. However, email verification cannot be undone if it has already been verified.
Withdrawal Restriction Level:
After successful identity verification, the user's withdrawal restriction level is adjusted from zero to the first level. This transition signifies that the user has completed the necessary steps to confirm their identity, thereby warranting a higher level of trust and access within
KYC (tab): tab section with User KYC details and see the following admin capabilities:
After successful identity verification by the Sum Sub service, the system automatically records and stores the user's information along with the uploaded documents. This stored data enables the administrator to review the user's information conveniently within the KYC (Know Your Customer) tab of the user's details page.
By accessing the user's details page and navigating to the KYC tab, the administrator gains visibility into the verified user's information, including:
Personal Details: Such as the user's name, address, date of birth, and nationality.
Document Details: Information extracted from the uploaded identification documents, including document type, number, and expiration date.
Verification Status: Confirmation of the user's verification status (verified or not verified) as determined by the SumSub service.
Uploaded Files: Access to view the documents uploaded by the user during the verification process, which may include scanned copies of their identification documents and selfies.
This centralized location within the administrator interface streamlines the review process, allowing administrators to efficiently assess the accuracy and completeness of the user's information. Additionally, it serves as a reference point for compliance monitoring and regulatory reporting purposes, ensuring that the platform maintains adherence to applicable regulations and standards.
See more about API Integration: Get started with API