Fime shares insights for financial institutions struggling with KYC provider decision

Financial institutions selecting a KYC provider for online transactions must navigate a series of challenges, even as the emergence of sophisticated fraud enabled by biometric  spoofs and AI forgeries makes rigorous evaluation of their technologies essential. The challenge and what banks and other financial institutions can do about it is the topic of an ebook published by Fime and parent Consult Hyperion.

The ebook cites Entrust figures showing that digital counterfeiting techniques surpassed physical counterfeiting for the first time ever during 2025.

Lack of internal expertise, the complexity of integration, and the risks of vendor lock-in or wasted investments are among seven important considerations identified by Fime for financial institutions working towards online KYC implementation. Fime and Consult Hyperion also offer an example of a check-list of high-level characteristics to look for in a KYC provider. They include coverage area, data source quality, efficiency and support. Evaluating these characteristics is one place in the process where independent expertise from labs like Fime, as well as advisory services like those from Consulting by Fime come into play.

Marcelo Bellini Garcia, VP of digital identity at Consult Hyperion and consulting by Fime, dug into one of the challenges faced by financial institutions in a September blog post on the extent of the market opportunity afforded by digital identity.

As many of the digital ID systems launched in both the public and private sectors do not use standardized frameworks, they often fail to interoperate. eIDAS 2.0 may change things in Europe eventually, but interoperability for cross-border transactions remains particularly elusive, Garcia writes. Standards bodies provide a way for identity systems to speak to each other, while certification bodies like Fime can help ensure the correct implementation and threat protections that earn trust.

Fime also shared insights into important considerations for financial institutions and others choosing a liveness detection provider in the 2025 Face Liveness Market Report and Buyers Guide from Biometric Update and Goode Intelligence.

Article Topics

biometric liveness detection  |  biometrics  |  Consult Hyperion  |  Fime  |  financial services  |  fraud prevention  |  KYC