IDnow vs LexisNexis Risk

Why Switch from LexisNexis Risk to IDnow?

LexisNexis Risk Solutions is a division of RELX, a UK-Dutch multinational, but its Risk Solutions identity verification business is headquartered in the United States (Atlanta, Georgia) and operates primarily under US corporate governance. LexisNexis Risk’s identity verification relies heavily on US-centric data sources — credit bureau records, utility data, and proprietary databases built for the American market. While LexisNexis has expanded into Europe, its core identity verification infrastructure and data processing remain rooted in US jurisdiction, subject to the CLOUD Act and US regulatory oversight.

IDnow, headquartered in Munich, Germany, was built specifically for the European identity verification market. The platform is recognized by BaFin — Germany’s financial regulator — as a compliant method for remote customer identification, a regulatory requirement that LexisNexis Risk cannot match with the same depth of acceptance. IDnow offers multiple verification methods including VideoIdent (live agent-assisted video calls), AutoIdent (AI-powered automated verification), eSign (qualified electronic signatures), and eID (integration with 30+ European electronic identity schemes).

What sets IDnow apart is its deep understanding of European regulatory frameworks. Where LexisNexis Risk approaches European identity verification as an extension of its US business, IDnow was designed from the ground up for AMLD5/6, eIDAS, BaFin, PSD2, and national regulations across EU member states. For European financial institutions, telecoms, and regulated businesses, IDnow provides regulatory certainty that a US-headquartered provider fundamentally cannot.

Feature Comparison

Feature	IDnow	LexisNexis Risk
VideoIdent (live agent)	BaFin-certified live video verification	Not available
AutoIdent (AI-powered)	Fully automated AI verification	Automated document + biometric checks
eID integration	30+ European eID schemes	Limited European eID support
eSign / QES	Qualified electronic signatures	Not available natively
BaFin compliance	Officially recognized	Not BaFin-recognized
AMLD5/6 compliance	Full compliance, EU-native	Compliance via EU subsidiaries
Credit bureau integration	Partner integrations	Extensive US credit bureau data
Fraud scoring	Basic fraud indicators	Advanced fraud analytics
European document coverage	Strong EU/EEA coverage	Broad global coverage
Data processing location	Germany / EU	US primary
GDPR compliance	Native — German company	DPA available, US jurisdiction
Regulatory expertise	Deep European regulatory focus	Primarily US regulatory focus

Key Advantages

BaFin Recognition: IDnow’s VideoIdent is one of the few remote identity verification methods officially recognized by BaFin for financial services KYC in Germany. This means German banks, insurance companies, and fintech firms can use IDnow to onboard customers remotely with the same legal validity as in-person identification at a branch. LexisNexis Risk does not hold equivalent BaFin recognition for its identity verification products.

European Regulatory DNA: IDnow was designed from the start to meet European regulatory requirements. The platform supports AMLD5/6 for anti-money laundering, eIDAS for electronic identification, PSD2 for payment services, TKG for German telecommunications, and various national gambling authority requirements. This regulatory depth is not something a US-headquartered provider can easily replicate — it requires years of engagement with European regulators and a fundamental understanding of how EU compliance frameworks interconnect.

Multiple Verification Methods: IDnow offers a spectrum of verification methods to match different regulatory requirements and user experience needs. VideoIdent provides the highest assurance with live agent verification. AutoIdent offers fast, AI-powered verification for high-volume use cases. eID connects to national electronic identity systems across 30+ European countries. eSign enables qualified electronic signatures during the verification flow. This flexibility allows businesses to apply the right level of identity assurance for each use case.

German Data Sovereignty: All IDnow data processing occurs within Germany and the EU. As a German company subject to the Bundesdatenschutzgesetz (BDSG) in addition to GDPR, IDnow operates under some of the strictest data protection law in the world. Biometric data, identity document images, and video recordings from verification sessions never leave EU jurisdiction — a critical requirement for European financial institutions and regulated businesses.

Cross-Border European Coverage: Through its eID integrations, IDnow connects to national identity schemes across Europe, including the German eID (Personalausweis), Dutch DigiD, Belgian itsme, Swedish BankID, Norwegian BankID, Finnish trust network, and many more. This makes IDnow particularly valuable for businesses operating across multiple European markets where different national identity frameworks apply.

Frequently Asked Questions

What is BaFin-compliant video identification?

BaFin (Bundesanstalt fuer Finanzdienstleistungsaufsicht) is Germany's federal financial supervisory authority. BaFin requires financial institutions to verify customer identities under Anti-Money Laundering regulations. IDnow's VideoIdent product is officially recognized by BaFin as a compliant method for remote identity verification. During a VideoIdent session, a trained agent conducts a live video call with the customer, visually inspects their identity document, verifies security features under different lighting conditions, and confirms the person matches the document photo. This meets the same legal standard as in-person identification at a bank branch.

How does IDnow's AutoIdent differ from VideoIdent?

AutoIdent is IDnow's fully automated identity verification product that uses AI and machine learning to verify identities without human involvement. The user captures photos of their identity document and a selfie, and the AI engine extracts data, checks document authenticity, and performs biometric face matching. AutoIdent is faster (typically under 30 seconds) and cheaper per verification than VideoIdent. However, VideoIdent carries stronger regulatory acceptance in Germany for high-assurance use cases like opening bank accounts. Many IDnow clients use AutoIdent as the primary flow and fall back to VideoIdent for cases that require higher assurance or when automated checks are inconclusive.

Where does IDnow process and store identity data?

IDnow GmbH is headquartered in Munich, Germany, and all identity verification data is processed and stored within the EU. IDnow's infrastructure runs on European data centers, ensuring full GDPR compliance. As a German company, IDnow is subject to German data protection law (BDSG) in addition to GDPR, which is among the strictest in Europe. Identity data is not transferred to or accessible from non-EU jurisdictions, unlike US-based providers that fall under the CLOUD Act regardless of where they store data.

Which European regulations does IDnow support?

IDnow supports a comprehensive range of European regulatory frameworks. These include German BaFin requirements for financial services KYC, the EU Anti-Money Laundering Directives (AMLD5/AMLD6), the eIDAS Regulation for electronic identification and trust services, the German Telecommunications Act (TKG) for SIM card registration, PSD2 Strong Customer Authentication requirements, and various national gambling authority regulations across European countries. IDnow's regulatory expertise is a key differentiator — the platform is specifically designed to meet European compliance requirements rather than adapting a US product to EU regulations.