Today, ID verification tools typically spring into action only midway through the onboarding funnel—think selfie uploads, document scans or phone checks
The identity verification industry appears to be at a crossroads: despite rapid technological advances, it risks getting left behind—much like how Intel misstepped by dismissing the iPhone’s disruptive potential in 2006.
Today, ID verification tools typically spring into action only midway through the onboarding funnel—think selfie uploads, document scans or phone checks. Yet most users drop off before reaching this stage, meaning companies only monetise a fraction of potential traffic. Crucially, rich behavioural signals —such as device metadata, usage patterns and subtle behavioural cues—lie untapped earlier in the process. These “non-traditional” indicators, experts argue, offer stronger predictive power and less friction than conventional identity checks .
The potential isn’t new: as early as 2020, the World Economic Forum acknowledged how digital footprints could enable continuous, passive authentication and risk assessment, while Gartner highlighted the value of device, location and behavioural insights as core components of modern identity proofing .
So why hasn’t the industry embraced this shift yet? The answer lies in the chilling effect of regulation. In Europe, GDPR scrutiny—even of anonymised behavioural data—has made companies cautious. In the US, concerns over the Fair Credit Reporting Act (FCRA) raise fears that opaque algorithmic rejections may not be compliant if they lack clear, human-readable explanations .
