iDenfy, a global identity verification and fraud prevention service provider, announced a major update to its most popular solution, ID verification, a non-document verification flow. Businesses that previously used iDenfy’s physical ID document verification can now offer their users the option to complete the process through the electronic ID (eIDV) flow when a physical document is not available. The update directly addresses one of the industry’s most persistent problems of legitimate customers abandoning verification systems simply because they don’t have an ID card or passport with them during the Know Your Customer (KYC) onboarding process.
Fenergo’s 2025 research found that most financial institutions globally are losing clients due to inefficient onboarding systems and cannot keep up with the human behavior struggles. The data shows that US firms are spending, on average, $72.9 million annually on KYC operations alone. The human cost is equally striking, as most US banks spend enormous sums to complete a single corporate client KYC review, although a significant share of those sessions never reach completion because users simply do not have a physical ID document with them at the moment. This brings an extra issue of the users’ increased drop-off ratio. Yet most platforms still offer no fallback when a user simply doesn’t carry a government-issued ID document in their wallet.
iDenfy’s newest identity verification innovation directly targets that gap by letting end-users switch the document verification step with the electronic ID functionalities, including Swedish BankID, UK’s OneID, USA’s OneID, along with others, such as Smart-ID, which is a popular government-backed digital authentication measure in the Baltics. iDenfy’s non-doc verification solution supports 60+ digital ID types in total. Since enabling the combined flow option, iDenfy has recorded a 23% reduction in verification drop-offs among users who previously would have abandoned the session entirely just because of not having a physical document.
“We’re prioritizing this workflow right now in our road map due to the high demand in various jurisdictions. It’s much better to onboard the user through a native, familiar workflow,” said Domantas Ciulde, the CEO of iDenfy, stating that new non-doc KYC flows will be added in the near future.
The new non-doc verification flow is designed to improve the user experience, since many users abandon the process at some point, especially if the U/X is poorly designed. For example, manual document and country selection is considered a hassle in today’s standards, as most ID verification solutions now automatically detect the user’s location and provide the correct country parameters based on data like their IP address.
“We looked at the data and saw that a meaningful number of users were dropping off, not because they were suspicious or unwilling to verify, but simply because they didn’t have their passport or ID card within reach at that moment. Electronic IDs carry the same level of government-backed trust as physical documents, and in many cases, they are even harder to forge. This is why letting users switch to one inside the same session was the natural solution for iDenfy,” commented Adomas Vitkauskas, the CFO of iDenfy.
With iDenfy, the process is now simple: if the user comes from a country where a non-doc flow is supported (and considered a complete, compliant KYC process alternative, typically through eID verification measures that are backed by government databases), they can log in using the familiar, pre-saved credentials, often generated codes/passwords, that are part of their “digital identity.” There are no other steps, unless the company wants to customize and build a stricter onboarding flow. For example, iDenfy also offers biometric verification, bank account verification, address verification, and other KYC methods, which differ based on the industry.
This added flexibility improves conversion and maintains security standards by allowing partner businesses to verify real customers who might otherwise lose patience due to friction rather than suspicion. The switch between physical and electronic ID verification happens seamlessly and entirely within the same session, with no restarts, no separate links, and no additional onboarding steps required.
Furthermore, iDenfy’s team is developing the next phase of its project to improve the KYC U/X for end-users, which is for the system to automatically suggest the eIDV workflow when a physical verification attempt fails due to poor photo quality, bad lighting, or an unreadable face image, rather than asking the user to retake photos repeatedly. According to iDenfy’s internal projections, this update is expected to reduce overall verification drop-off rates by an additional 30%.
It’s worth mentioning that the combined flow arrives at an important moment for digital identity adoption times. For instance, the EU’s eIDAS 2.0 regulation is driving member states toward universal digital identity wallets, while markets such as the Nordics already conduct the majority of identity transactions through electronic security systems. The combined physical and electronic ID verification flow is now available to all iDenfy customers at no additional cost and can be enabled through iDenfy’s dashboard without any integration changes.