SMEs and the Democratisation
of Identity Technology

Published on: Nov 04, 2025

Unlocking Secure Growth in the Digital Economy

For years, advanced identity verification was something only big banks, global fintechs, and governments could afford. They had the budgets, teams, and time to build complex systems. For small and medium-sized enterprises (SMEs), that world was locked behind high costs and technical barriers. 

That’s finally changing. As digital commerce grows and fraud becomes more sophisticated, SMEs face the same challenges as large enterprises. The difference is they now have access to the same technology. Cloud-based, pay-as-you-go platforms have levelled the field, making secure identity verification accessible to everyone. 

At the heart of this shift is a simple idea: trust technology shouldn’t be a privilege; it should be a platform for growth. 

1. The SME Security Gap 

SMEs make up more than 99% of UK businesses and employ over 16 million people (FSB, 2024). Yet many are underprepared for the growing threat of digital fraud. 

Identity fraud cost UK businesses around £1.8 billion in 2024 (Cifas, 2025). Fake accounts, false applications, chargebacks – it’s all rising fast. Meanwhile, regulations like KYC and AML are tightening across finance, property, recruitment, and gaming. 

Until recently, SMEs had two bad options: buy expensive enterprise software that didn’t fit their scale, or rely on manual checks that were slow and unreliable. Both made growth harder. 

2. Technology Has Changed the Game 

That equation has flipped. Thanks to the cloud, APIs, and biometric tech, identity verification is now accessible and affordable. 

Platforms like Goidentity, powered by Thales technology, let businesses integrate secure verification in minutes. A company can verify a passport, confirm liveness, and check global watchlists from a simple dashboard or app, all without a complex setup. 

This is the same shift we saw with accounting and e-commerce. QuickBooks replaced costly on-premise systems. Shopify made online selling possible for anyone. Now identity verification is going through the same transformation. Goidentity’s flexible, pay-as-you-go model is part of that movement. 

3. Turning Compliance into a Growth Driver 

For most SMEs, compliance sounds like red tape. But in reality, trust drives growth. Businesses that make it easy for customers to join, buy, or apply build stronger relationships and higher conversion rates. 

According to McKinsey (2024), companies with high digital trust see customer retention rates up to 30% higher than competitors. 

So compliance isn’t a box-ticking exercise. Done right, it becomes a selling point. 

Examples speak louder than theory: 

  • A fintech lender can verify customers instantly and approve loans in minutes. 
  • A recruitment firm can complete right-to-work checks in a few clicks. 
  • An online retailer can confirm a buyer’s age during checkout without interrupting the purchase. 

Each case shows how automation, security, and convenience can go hand in hand. 

4. Making Enterprise-Grade Security Accessible 

This shift isn’t just about technology – it’s about structure and accessibility. 

In the past, high-end identity systems required long contracts and bespoke integrations. Today, SMEs can tap into the same level of capability on demand. 

Take Goidentity: 

  • Backed by Thales, it supports over 8,000 document types across 195 countries. 
  • It encrypts data end to end using a zero-trust approach. 
  • Pricing is usage-based, so businesses only pay for what they need. 

That means SMEs can confidently compete in regulated markets such as finance and property, where verified identity is essential. It also enables safe cross-border trade, where trust is everything. 

5. Policy and Market Momentum 

The timing couldn’t be better. 

Government initiatives like GOV.UK One Login and the Digital Identity and Attributes Trust Framework (DIATF) are building consistent standards for secure, interoperable digital identity. These frameworks encourage private-sector solutions that are privacy-first and easy to integrate, exactly what platforms like Goidentity deliver. 

At the same time, the UK Digital Economy Council has flagged SME digital adoption as a key growth driver, identifying identity verification as one of the most important enablers of trade and trust. 

Across the market, API-based verification tools and digital identity wallets are expanding rapidly. The message is clear: digital identity is no longer a luxury. It’s becoming a basic utility – as essential as payments or communications. 

6. The SME Dividend 

The benefits for SMEs are real and measurable. 

Efficiency: Automating checks cuts administrative time and frees teams to focus on customers. Government-backed trials of digital Right to Work checks under the UK’s Digital Identity and Attributes Trust Framework have shown onboarding times reduced by up to 60% compared with manual verification. 

Security: Biometric and liveness detection stop fraud before it happens. 

Customer experience: Mobile-first verification keeps users engaged and reduces drop-offs. 

Scalability: Start small, grow confidently, no major rebuilds needed. 

Goidentity users report faster onboarding, lower fraud risk, and happier customers, all while staying fully compliant with UK and international standards. 

7. Building a Culture of Digital Trust 

Technology is just one side of the story. The real value comes when businesses turn trust into part of their brand. 

When customers know their data is secure and handled responsibly, they stay loyal. Trust drives referrals, partnerships, and credibility. 

This is increasingly important as the UK and EU move toward digital identity wallets, where users control their verified credentials. SMEs that adopt interoperable solutions now will be ready for that future. 

8. Conclusion 

The democratisation of identity technology is reshaping how businesses grow online. What used to be a compliance headache is now a competitive advantage. 

SMEs no longer have to choose between affordability and security. With Goidentity, they can have both enterprise-grade verification, simple integration, and pricing that fits their scale. 

This is what democratisation looks like in action: security without exclusion, compliance without complexity, and trust that every business can build on. 

References