StoneX Group Inc.'s Japanese subsidiary has implemented an artificial intelligence-powered identity verification system for its FOREX.com trading platform, with the company projecting the change will approximately double new account openings.

Will such a seemingly simple change really be able to significantly boost the number of successfully completed registrations?

FOREX.com Bets Big on AI to Double New Customers

StoneX Securities Co., Ltd. replaced its existing electronic know-your-customer (eKYC) service with LIQUID eKYC, developed by Liquid Inc., a member of the ELEMENTS Group. The new system uses advanced image recognition technology to verify customer identities during the account opening process for FOREX.com, which offers FX and CFDs trading services.

The NASDAQ-listed StoneX Group made the transition to address high user abandonment rates during the application process, particularly during the photo capture stage required for identity verification. The new AI-powered system provides real-time error messaging to guide users through document submission, aiming to significantly reduce drop-off rates.

“With this transition, the company aims to prevent user drop-offs during the application process and anticipates that the number of account openings will approximately double as a result,” the company commented in today’s (Wednesday’s) press release.

What others are reading: Forex.com Owner's Q2 FY25 FX and CFDs Trading Volumes Rise, but Revenue Fails to Keep Up

Addressing Onboarding Challenges

FOREX.com serves over one million users across 180 countries, making efficient onboarding critical for business growth. The platform's Japanese operations previously used eKYC procedures that required customers to capture images of identification documents and match them with selfies for verification.

The upgraded LIQUID eKYC system incorporates biometric authentication and enhanced image recognition capabilities designed to minimize unclear image submissions and improve automated facial recognition accuracy. The technology leverages data from over 130 million identity verifications performed across the ELEMENTS Group.

Beyond improving user experience, the new system addresses Japan's complex regulatory requirements, including compliance with the Act on Prevention of Transfer of Criminal Proceeds and mandatory collection of MyNumber (Individual Number) information for financial institutions.

You may also like: Forex.com Expands APAC Presence: Launches in Singapore

Operational Improvements Expected

The implementation includes automated error detection that can identify discrepancies between application form information and submitted identification documents. When issues are detected, the system automatically notifies users and prompts them to resubmit corrected information, reducing manual follow-up requirements.

LIQUID eKYC also provides business process outsourcing services for manual verification tasks required under Japanese anti-money laundering regulations. The service includes specialized support for foreign-affiliated companies, offering implementation and operational assistance in English.

The system supports identity verification for both Japanese nationals and foreign residents, addressing FOREX.com's diverse customer base in Japan. StoneX Securities offers trading services for 84 foreign exchange currency pairs and 26 knock-out option products through web and mobile platforms, including MetaTrader 4 support.