The strategic move comes as a response to the advancing threat of identity fraud in the region with the increase in digital startups and is set to reinforce Sumsub’s presence in APAC, creating partnerships and serving new clients in Singapore, Hong Kong, and beyond.
Per the information detailed in the press release, in recent years, Singapore has experienced a rise in digital assets and fintech businesses, and Hong Kong is also emerging as an international crypto hub as it keeps on embracing Web3’s potential. By capitalising on Singapore’s financial stature and tapping into its startup scene, Sumsub is looking to form valuable partnerships and expand its reach in the wider region.
Andrew Sever, co-founder & CEO of Sumsub advised that the APC region is amongst the top priorities for the company in terms of global expansion, as following the boom of digital startups, and fintechs especially, business opportunities are presented in this market due to the high demand for instant user onboarding and strong fraud prevention. The company has collaborated with multiple Western and Eastern companies to help them build high-conversion verification flows while also holding off fraud and ensuring regulatory compliance and is looking to serve more customers and partners within the APAC region.
Based on internal Sumsub statistics, APAC is no exception when talking about the constant increase in identity fraud globally, exemplifying Singapore, where digital fraud in the fintech industry grew 33% from Q1 to Q2 2023. Within the same period, the ID card fraud rate increased 1.5 times, whereas passport fraud more than doubled, reaching 3.5%. In Hong Kong, the passport rate exceeded 4% last quarter, alongside Malaysia. Whereas in the Philippines residence permits doubled, Indonesia and Thailand experienced more than a 60% increase in ID fraud rate.
Having international experience and Asian clients in its portfolio such as Binance, bitwallet, and Bybit, Sumsub developed a product that enables companies to maintain a high level of fraud protection and remain compliant with varied Know Your Customer (KYC), Know Your Business (KYB), and anti-money laundering (AML) regulations. The company offers improved customer experiences customised to different jurisdictions, while concomitantly providing high pass rates across emerging and developed markets alike. Sumsub rolls out features ahead of wider market adoption, having a Travel Rule solution for the crypto industry in Singapore and Hong Kong, as well as document-free 1click verification in Indonesia, which is thought to enable fast and inclusive onboarding in Asian markets.
Adding on this, Penny Chai, VP of Business Development, APAC at Sumsub stated that with the opening of the new regional headquarters in Singapore, they are set to cooperate closely with partners and businesses to enable an increasingly secure business environment in the region.
With the APAC expansion, Sumsub looks to target the fintech, crypto, trading, gaming, and mobility industries in which the company currently verifies millions of identities on an annual basis for more than 2,000 global clients.
Sumsub was featured in The Paypers’ Fraud Prevention in Ecommerce Report 2022-2023, where it provided insights into its fraud prevention strategies and solutions.
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