Financial services

VeriFast raises $3.5M as part of digital financial services growth

According to a new report, digital processes are increasingly relevant to banking consumers of all ages.

Identity verification provider IDnow, which paid for the report, says that while Covid accelerated the need for better remote access when travel restrictions were common, the growth trend continues.

“This study illustrates the importance of digital processes to consumers,” comments Mike Kiely, sales director for financial services at IDnow.

Specifically, 64% of Britons surveyed for the report believe digital ID processes such as remote account opening, online banking options or a friction-reducing app were important when choosing a bank. .

The report also showed that 47% of 2,001 UK adults surveyed were the most annoyed by the time constraints of banking, including limited hours at local branches (22%), long processes (16%) and the having to go to a branch to open an account (9%).

Meanwhile, only a quarter (24%) of respondents in the UK had accounts with a challenger bank (32% in London).

“It’s interesting to see that the majority of respondents still do business with a traditional bank,” says Kiely.

“The demand for more digital processes, however, remains high, representing a huge opportunity for institutions that are equipped and prepared to adopt technologies that will allow them to deliver the online services that many have come to expect.”

Sixty-three percent of respondents aged 18-24 and 35-44 said they had opened an online bank account with digital ID, while 37% aged 55 or older were the least likely to have opened an online account.

“With young people spending so much of their time online, there are naturally more potential touchpoints for fraudsters to target,” Kiely says. “Meanwhile, older generations tend to be naturally less digitally confident, so some fraudsters may see young adults as an easier target.”

To overcome these concerns, he says it’s paramount that banks invest in the right technologies to deliver the highest level of security at every stage of digital banking while meeting demand for a smooth and simple experience.

VeriFast Closes $3.5M Round to Expand Mortgage Underwriting Service

The wave of digitization of financial infrastructure continues in Canada as well, with biometric verification-as-a-service company VeriFast announcing the completion of its $3.5 million seed funding to serve the loan underwriting market. mortgages.

The financing was led by M3 Financial Group with participation from real estate consultants Scott McGillivray and Michael Sarracini of Keyspire, and “Millionaire Mom” ​​real estate investor Susan White Livermore.

“Efficient collection and analysis of financial data is at the heart of every business that requires new customer sign-up approvals,” says Tim Ray, co-founder of VeriFast.

“Our platform gives customers transparency with faster decision-making built into their existing workflows,” says Ray.

VeriFast has partnerships with leading proptech, or real estate technology, providers in the United States and Canada to automate financial, KYC, and identity verifications. The company’s platform provides real-time financial verifications combined with AI to verify data points beyond traditional credit checks, according to the announcement.

“We are also seeing rapid adoption of the solutions by mortgage lenders who want to digitize and streamline their pre-approval and underwriting processes, reducing labor costs and compressing approval cycles by up to 90% .”

The investment comes at a time of substantial growth for VeriFast, which earlier this month launched a tenant screening product with Rent Panda and days later hired two executives.

Article topics

biometrics | consumer adoption | financial services | financing | identity verification | IDnow | KYC | remote verification | selfie biometrics | VeriFast