African fintech has an identity verification problem begging for a solution

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The Draft is a weekly series that brings you the most important technology news across emerging markets, written by Juwon and edited by Loy. Follow the rest of our coverage on Techloy.com and up-to-the-minute updates @techloy

As the saying goes...an apple a day keeps the doctor away. In digibank, it's a verification per click that keeps a scam away.

Neobanks are redefining the banking space; from virtual banking, and digital cards to buy now, pay later (BNPL), fast banking is on the rise. With this increase comes vulnerability to fraud, and this affects banks and their customers.

Customers are put at the risk of losing their data and importantly their funds, while the bank's integrity and finance crumble when proper verification isn't in place and scammers penetrate the banking process.

The recent money laundering allegations and identity thefts in African fintech would be avoidable if adequate verification were in place. This is where Artificial Intelligence (AI) and Machine Learning (ML) come in since both technologies can be used to aggregate and contextualize data to prevent fraud and cut down losses on the bank and customers.

Startups like Youverify are seamlessly and securely using these emerging technologies for identity data access and verification. The San Francisco and Lagos-based startup extended its seed round funding to $2.5 million in a new raise announced this week.

This week's edition of The Draft highlights these and other top startups across emerging markets, including venture funds, deals, and acquisitions.