StoneX Japan Adopts LIQUID eKYC for Identity Verification

Liquid Inc., a member of the ELEMENTS Group, a Tokyo Stock Exchange Growth Market listed company, has announced that StoneX Group Inc. has adopted its online identity verification service, LIQUID eKYC. The solution is set to be implemented by StoneX's Japanese subsidiary, StoneX Securities Co., Ltd.

LIQUID eKYC will be utilized to verify customer identities during account openings for FOREX.com, the FX and CFD trading brand operated by StoneX Securities. While StoneX Securities had previously used eKYC services, the company has decided to transition to LIQUID eKYC, citing its advanced image recognition AI technology for more accurate identity verification. With this transition, StoneX Securities aims to prevent user drop-offs during the application process and anticipates that the number of account openings will approximately double as a result.

FOREX.com is described as a global online trading platform primarily offering foreign exchange (FX) and CFD trading services to individual investors and traders, serving over one million users across 180 countries. In Japan, StoneX Securities already implements eKYC procedures for online account openings, involving image capture of identification documents matched with user selfies for verification. The decision to integrate LIQUID eKYC was made to achieve more accurate identification.

LIQUID eKYC is an online identity verification solution that facilitates remote verification processes, either through the capture or IC chip reading of ID documents combined with facial photo matching, or by utilizing Japanese Public Key Infrastructure (JPKI) for official digital authentication. The solution's use of biometric authentication and image recognition technologies is intended to reduce drop-off rates during onboarding, minimize unclear image submissions, and enhance the accuracy of automated facial recognition, thereby improving the efficiency and reliability of the identity verification process.

Key advantages cited for implementing LIQUID eKYC include improved completion rates through real-time, contextual error messaging, particularly during the photo capture stage. AI-powered image recognition provides real-time error messages, guiding users more effectively. The system, reportedly backed by over 130 million identity verifications across the group, aims for a seamless user experience. Furthermore, it seeks to improve approval rates in the post-submission review process with a built-in review management function that identifies discrepancies. By integrating with LIQUID eKYC, the system can automatically notify users of specific errors for correction, reducing manual follow-up. Additionally, tasks like manual verification of ID documents, required by Japan's Act on Prevention of Transfer of Criminal Proceeds, are handled via LIQUID eKYC's BPO services, enhancing efficiency and approval rates.

LIQUID eKYC also assists with legal compliance, supporting identity verification and the collection, management, and secure storage of MyNumber (Individual Number) data, which is noted as a significant operational challenge for foreign-affiliated companies in Japan. The system is also noted for its track record in verifying identities of foreign nationals, ensuring an inclusive and compliant onboarding process for diverse user segments at FOREX.com. A specialized support team for foreign-affiliated enterprises provides comprehensive English-language implementation and operational support, including guidance on Japanese regulatory compliance.