YouHodler makes entry to the crypto market simple and convenient, and acts as a first market entry point for many of their users.
Since 2019, about 90% of YouHodler’s business has been focused in European countries. The remaining 10% are in Canada, Australia, New Zealand, and a few Asian countries.
The company holds two licenses in Switzerland, a cryptocurrency exchange license and a crypto-pawnshop license.
The Challenge
Since day one, YouHodler wanted to operate in full compliance and maintain good relations with banks and other institutions. But, with regulations constantly shifting across their target markets, the company needed a strong and reliable KYC provider to get this job done.
Two years ago, YouHodler tried out their first automated KYC solution, but wasn’t quite impressed with the results. For starters, a substantial percentage of their users couldn’t pass verification. Plus, passports and ID photos uploaded to the dashboard were of poor quality. This meant YouHodler’s customer support spending half of their time manually conducting checks.
YouHodler also experienced difficulties in the UK, Australia, and Canada, where it’s common to use a driver’s license as an ID. These documents got rejected in nearly 50% of cases.
Device compatibility was another issue with YouHodler’s previous KYC provider. If a customer registered with YouHolder using a laptop, they still needed to download a dedicated mobile app to pass verification. In other words, users had to switch devices for no good reason.
Altogether, these issues pushed YouHodler to look for a more reliable partner—one that would meet all their needs, improve key metrics and help the company cut costs on user verification.
Why Sumsub?
YouHodler researched a number of automated KYC providers on the market. Sumsub was their ultimate choice for the following reasons:
- All-in-one solution for multiple regulatory requirements
- Short processing time and high verification speed
- Reasonable pricing
- Intuitive interface
- Responsive 24/7 support
The Solution
Sumsub’s wide range of checks enables YouHodler’s clients to conduct KYC/AML on a truly global scale. These checks include AML screening across International Sanctions, PEPs, Watchlists, and Adverse Media, Email Verification, Phone Verification, ID Verification, Liveness and Face Match, and PoA (proof of address).
Sumsub’s interface is far more user-friendly, which reduces drop-offs and brings up overall conversion. Accordingly, users can complete their verification journey from any device, thanks to Sumsub’s WebSDK functionality. Plus, Sumsub’s built-in tips solve 99% of questions that users may have during the verification process.
Andrei Alekseev
CMO at YouHodler
With Sumsub, our clients can enjoy a more efficient onboarding process while simultaneously joining the fight against the growing threat of identity fraud in the cryptocurrency industry.
Implementation
YouHodler integrated Sumsub into its platform after a long and detailed testing process, aimed at providing the best experience possible for their clients.
The complete product integration, together with testing, took one month. Throughout this process, YouHodler was guided by Sumsub’s support team, who were there to answer any questions and provide solutions where needed.
Andrei Alekseev
CMO at YouHodler
Looking back, I can say that this was one of the best integration experiences we’ve ever had.
The Results
With Sumsub, YouHodler was able to improve their onboarding processes significantly, reduce verification time to 1 minute and 30 seconds (before, it took 9.8 minutes on average to verify one user), and increase pass rates in their four most high-traffic regions to 72%. These results were evident on day two.
Last but not least, YouHodler was able to lower support and user verification costs by 50%. Sumsub also enables the company to create automatic reports for regulatory bodies and applicable laws.
Future plans
Soon, YouHodler expects to receive their third license in Cyprus, which will allow them to onboard in new regions and comply with the latest regulations in Europe. Sumsub’s CySec-certified legal team will be there to help at every step of the way.
As far as new features, YouHodler plans to integrate Video Identification, KYB and Questionnaires for gathering users’ source of funds.