Success Story | Spanish Financial Sandbox Confirms Didit as the New Standard for Digital Onboarding

The Challenge: Generative AI Is Breaking Identity Verification

After more than a year inside Spain's financial sandbox, one conclusion is now undeniable: generative AI is putting online identity verification at risk.

Deepfakes, document manipulation, and sophisticated impersonation attacks have fundamentally changed the threat model for digital onboarding. Traditional video-identification processes, once considered secure, are now vulnerable to AI-generated fraud that can bypass conventional checks with alarming accuracy.

The Spanish Treasury, the National Securities Market Commission (CNMV), and SEPBLAC (Spain's anti-money laundering authority) set up this controlled regulatory environment to find solutions that could withstand these new threats. Didit was selected to prove that speed and security don't have to be a trade-off.

What is Spain's Financial Sandbox?

Spain's financial sandbox is a controlled testing environment supervised by CNMV, SEPBLAC, and the Spanish Treasury where innovative companies can deploy and validate new technologies under real regulatory conditions. It allows regulators to evaluate emerging solutions against the highest compliance standards before they reach the broader market.

Didit participated in the sandbox's sixth cohort, undergoing over a year of rigorous testing and evaluation in collaboration with the three regulatory bodies.

What Didit Demonstrated

Inside the sandbox, Didit deployed its vertically integrated identity verification stack, built from the ground up to counter AI-driven fraud:

• NFC Document Verification: Reads the chip embedded in identity documents (passports, national IDs) to extract cryptographically signed data, making document forgery virtually impossible.
• Active Biometric Liveness Detection: Custom AI-powered liveness tests detect deepfakes, face swaps, and sophisticated impersonation attempts in real time.
• End-to-End Fraud Detection: The entire stack, from document reading to biometric matching, is vertically integrated so every layer reinforces the next. No weak links.
• ICAO-Standard Global Compatibility: The NFC-based approach follows international civil aviation standards, making it valid in 150+ countries.

This wasn't an incremental improvement layered on top of legacy systems. Didit rebuilt identity verification from the ground up, ensuring security and speed reinforce each other instead of trading off.

The Results: A New Standard for Digital Onboarding

The sandbox conclusions, now published by the Spanish Treasury, confirm that Didit's technology:

• Reduces identity fraud to residual levels. Even the most advanced deepfake and document manipulation attacks were blocked.
• Delivers security equivalent to or superior to in-person verification. A first for fully digital onboarding in a regulated environment.
• Aligns with EBA Guidelines on digital onboarding. Full compliance with the European Banking Authority's framework for remote customer identification.
• Received positive evaluation from CNMV and SEPBLAC. Both regulatory bodies validated Didit's approach as a robust, scalable solution for financial services.

All of this while maintaining a frictionless user experience that takes seconds, not minutes, and scales globally.

## What the Regulators Found

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"The report confirms that current video-identification processes are vulnerable to manipulated documents and deepfakes. Didit's NFC + active biometrics technology demonstrated that it blocks the most advanced fraud scenarios, offering a level of security equivalent to or superior to in-person verification."

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Conclusions Report, Spanish Financial Sandbox (CNMV, SEPBLAC, Spanish Treasury)

Why This Matters for Banking, Fintech, and Crypto

This is not just a Spanish milestone. The sandbox conclusions send a clear signal to the entire European financial ecosystem:

• Legacy video-identification is no longer sufficient. Regulators are acknowledging that AI-generated fraud requires a fundamentally new approach.
• NFC + biometrics is the new baseline. The combination of chip-reading and active liveness detection is now the gold standard for compliant onboarding.
• Didit delivers this at $0.30 per verification. 3-5x cheaper than incumbents, with no minimums, no contracts, and 500 free verifications per month.

For any company in banking, fintech, or crypto reviewing its onboarding process, the regulatory writing is on the wall: the bar has been raised.

Want to Be Our Next Success Story?

Didit offers the fastest, most secure identity verification on the market, now validated by Spain's top financial regulators. Whether you're a neobank, crypto exchange, or marketplace, we're ready to help you meet the new standard.

Start verifying for free or book a demo to see how Didit can transform your onboarding.