Challenge
Lofty uses Berbix to verify prospective investors’ identities, meet regulatory requirements, prevent duplicate accounts, and enable them to focus on growing their business.
Investing in real estate virtually can be great for convenience, but it comes with additional regulatory requirements and risks to account for.
Lofty needed a low friction approach to verify the identities of potential investors looking to gain access to their platform. And they turned to Berbix, an instant and automated ID verification solution, to do the job.
Company
Founded in 2018, Lofty enables anyone around the world to invest in U.S. real estate with as little as $50. From day one, Lofty knew they needed an ID check solution that not only accurately verified a user’s identity, but also ensured that users couldn’t create multiple accounts per verified identity.
“Identity verification is part of everyone’s introduction to the Lofty platform. The ID verification process is a cornerstone of onboarding, and giving our users a smooth experience is critical to them signing up for our platform,” said Lofty.
Problem
Lofty needed a KYC provider that checked a lot of boxes:
- Scalable
- Low friction and instills trust for prospective users
- Supports a global audience
- Securely stores KYC data long term
- Provides performance insights
They searched around, and consistently found nearly all providers failed to meet all of these requirements. As a Y Combinator company, they checked on recommendations from the Y Combinator community and were recommended Berbix. This is just one of many examples of Y Combinator companies helping other Y Combinator companies with challenges that legacy solutions just don’t address.
Solution
Berbix’s instant and automated ID check solution gives Lofty the ability to quickly and accurately verify potential investors helping the Lofty team achieve their goal of making real estate investment simple and attainable for all.
Easy to Use
Berbix is simple and easy for the Lofty team to use, from leadership to the customer success team and prospective users. These teams also find Berbix simple to navigate when they’d like to check which transactions have been rejected. In all, Lofty has found Berbix to be among the easiest of document ID verification solutions to use and the most robust.
“We’re confident leaving Berbix running in the background, taking care of verifying IDs and keeping the headache of verification off our plate.”
Preventing Duplicate Accounts
A key reason why Lofty chose Berbix is due to Berbix’s data retention policies: Berbix enables companies to keep ID verification data securely stored within the Berbix platform for up to two years. This helps Lofty ensure that previously verified users don’t try to (or accidentally) create multiple accounts under the same identity. Preventing duplicate accounts makes tax season easier for everyone (one person gets one set of tax documents), and mitigates the risk of people taking advantage of promotional offers.
International Support
Another key reason Lofty chose Berbix is its support for international users. Many other providers are U.S. only, which does not help companies like Lofty that have a large base of customers around the world. The international support that Berbix provides is critical to their success.
“Berbix helps us meet compliance regulations, gives our potential users a great customer experience and improves our conversion rates.”
Summary
Berbix’s ID verification is a tool that can help fintech companies grow while minimizing risk. The features and policies built into Berbix give Lofty employees the confidence that their users are who they say they are while freeing up their time to focus on mission-critical tasks.
