Yes and Verimi join forces to improve identity verification

After the merger of IDNow and Ardiadnext, a new association will allow these two German solutions to concentrate their strengths. Identity verification (KYC) provider Verimi and open banking solution Yes have announced their merger.

FACTS

• In the future, the services of Yes and Verimi will be combined on a single platform to offer all services from a single source.

• The merger will bring together the services of Yes and Verimi and make it possible for 25 additional companies to work together, including Sparkassen, VR-Banken and Deutsche Bank.

• The German Federal Ministry of the Interior (BMI) has approved the digital ID wallet for access to public administration user accounts, stating that it would be compliant with the Money Laundering Act.

• The bundle will be based on self-sovereign identity (SSI) principles, with encryption and privacy practices by design.

• The upcoming wallet will store national ID cards, driver's licences and other documents.

• The joint Verimi ID wallet offering is available on the web and as an application.

CHALLENGES

• Extended reach in Germany: Thanks to the combined reach of all shareholders, almost all German citizens will be able to use the joint offering in personal applications in everyday life. The three main partners from the banking sector alone, including Sparkassen, VR banks and Deutsche Bank, cover more than 50% of the German market with a total of over 50 million private customers. The now merged infrastructure of Verimi and Yes has already processed over 10 million transactions in 2022.

• Enabling a new business model that unites the interests of banks and companies for the benefit of their customers. With their digital wallet, users will be able to identify themselves more easily with acceptance partners in many sectors. This fluidity responds to an evolution of services that are increasingly digitalised, but also to an evolution of the business models of companies that work more and more in partnership within ecosystems, that share user data and must allow users to access their services in complete security.

MARKET PERSPECTIVE

• A recent survey by UK identity verification company Trulioo found that 57% of respondents said they were more tolerant of friction in the identity verification process. But 85% of respondents said that marketplaces that invest in identity verification show that they care about their customers.

• In addition, the European Commission is making progress on the European Digital Identity (eID). The Council adopted its common position on the European Digital Identity (eID) Regulation. The revised text aims to ensure universal access for individuals and businesses to secure and trusted electronic identification and authentication through a personal digital wallet on a mobile phone.