CLEAR, known for its biometric airport screening and venue access program, has marked its entry into the financial services sector with the acquisition of Sora ID, a startup specializing in ID verification technology. This strategic move is accompanied by the unveiling of a rebranded version of Sora ID’s flagship offering, a digital identity credential dubbed “One-Click KYC”. This innovative solution facilitates a simplified onboarding process for users across multiple financial institutions, requiring just a single onboarding session.
The “One-Click KYC” onboarding encompasses various validation checks including KYC databases, email, and IP address verification, with an added optional facial recognition feature for matching an end user to their photo ID. Notable existing customers backing this solution include OpenSea, Karat, Partial.ly, PeerStreet, and ZeroHash. The financial details of the acquisition remain undisclosed, however, it’s known that Sora ID had previously secured $5.3 million in venture capital funding.
Headquartered in New York, CLEAR has been broadening its horizon beyond its traditional domains. The company’s venture into financial services aims to address the prevalent challenge of customer drop-offs during the Know Your Customer (KYC) verification phase.
CLEAR’s reusable KYC solution promises a frictionless consumer experience, aiming to help financial services firms overcome the traditional hurdles associated with customer onboarding. The solution leverages the technology developed by Sora ID to offer a unique, reusable KYC product that not only streamlines the verification process but also securely verifies the identity of customers, fostering a higher conversion rate from potential to active customers.
CEO of CLEAR, Caryn Seidman Becker, emphasized the significance of identity verification in modern financial services, stating, “Identity verification and secure authentication is fundamental to modern financial services, and CLEAR’s reusable KYC solution delivers something new: a frictionless consumer-focused signup that will help partners successfully enroll customers.”
CLEAR’s step into the fintech space reflects the company’s broader vision of enhancing security and customer experience across various sectors. The acquisition of Sora ID and the subsequent launch of the reusable KYC solution, reflect CLEAR’s ambition to leverage its trusted brand and extensive user base of 17 million, cultivated from its ventures in highly regulated industries like airline security and healthcare, to now serve the financial services sector.
(Originally published on FindBiometrics)