Veda acquires ZipID

Veda has added a face-to-face customer identification capability to its suite of identification and fraud services, with the acquisition of ZipID. The deal is timely, with the Australian Registrars' National E-Conveyancing Council poised to mandate face-to-face verification of identity for land dealings.

ZipID started operating in March last year and is a specialist in the field. It has an arrangement with logistics company Toll Group, which involves a Toll driver going to the customer's office or home to carry out the verification of identity.

The process involves the use of a tablet running a proprietary system called IDMatrix, which photographs and digitises the customer's image and other details.

The company claims to have had no problems with fraud and that its IT has been proven to be robust.

ZipID's clients include lenders (typically those that don't have branches), lawyers and conveyancers.

Sean Simmons, one of the company's founders and its head, said he and members of his team would be staying with the business, which will form part of Veda's fraud and identity solution business.

Earlier this year Veda partnered with the financial software company Mogo to offer an income verification service.

Veda's general manager of fraud and identity solutions, Imelda Newton, said that in the current situation Veda's preference was for an acquisition rather than a partnership.

Newton said: "It made sense to bring ZipID in through acquisition so we could integrate the technology and address all the different identification and fraud issues together."

Face-to-face verification is required in situations other than land dealings. In most cases the know-your-customer requirements of the anti-money laundering law can be satisfied through electronic verification. However, some people, such as those who are new to the country, cannot be verified that way.

"We want to bring all this together and give or customers a good experience," Newton said.

Simmons said growth prospects for the business included working with lenders that have branch networks. Those institutions tend to do their own in-branch face-to-face verification now but they recognise customers don't find it convenient.

"Onboarding customers has become a very competitive part of retail banking," he said.

"When you ask someone to come into the branch to complete an application you are putting a burden on them. It is not convenient for consumers to do that and a significant number drop out of the transaction at that stage."