How Document verification is changing the modern world tech Era
BUSINESS TECHNOLOGY

How Document verification is changing the modern world tech Era

Document verification

With the advent of technology and increasing smartphone penetration worldwide, personal interactions are being lessened. People consider physical interactions a waste of time now. This is posing a great challenge for banks and other financial industries because customers are looking for an easy way out for opening an account and getting their documents verified. When it comes to document verification, the financial institutes face a highly relevant question;

Can customer verification be conducted without mandating the physical presence of the user?”

Document verification = ID verification

Identity verification is the legal requirement for banks, they are obliged to verify customers before onboarding them to ensure that the user is the one who they claim to be. In order to verify the claim, of course, banks can’t just rely on the individual’s face. It must be backed by permanent personally identifiable information such as name, date of birth, ID card number, etc. The reason why government-issued documents are verified for ID validation.

To say document verification can be referred to as ID verification won’t be an understatement. Now the challenge is to streamline the document verification process to meet user expectations and comply with stringent regulations.

A customer must submit a pair of ID record images for customer onboarding. The AI-based solution accepts multiple types of documents including passport, smart CPR, employee letter, driver’s license, ID card, etc. in 

To verify the ID document, the customer also needs to transfer a recently taken selfie into the solution’s interface. Then the digital system authenticates the customer’s identity in a short time by confirming the presented credentials from international databases, not to the public, and sanctions The.OCR service converts electronic copies of documents to text for authentication. Facial recognition technology in document validation services validates the customer by authenticating facial dynamics and comparing them to the face on the evidence submitted during identity document verification. 

The entire selection process takes seconds and shows the final result with the utmost authenticity.

Manual Verification and the Problem of Plenty

Traditionally the banks are manually performing the document verification. Imagine an organization receiving multiple applications at once, how they are going to manage verification. Of course, it’s going to take time to verify all those documents. Let’s take a deeper look into the limitations of manual verification.

  • Additional Resources

To manually verify ID documents and carry out the KYC (know your customer) process, businesses need a dedicated team of experts whose sole responsibility is to verify and authenticate the user’s identity. Acquiring specified and additional resources can be quite costly for any organization.

  • Time-consuming

Manual document verification requires a proper time of experts to cross-match the information on the document. And in the case of the detailed KYC process, the document verification can take up to weeks. This can cause frustration among customers and lead to an increased abandonment rate.

  • Error-prone

Manual verification methods always leave room for error. Even if humans verify the document with extreme care, there’s always a risk for some mistake. In worst cases, the organizations can even onboard fake and fraudulent entities due to inefficient verification.

  • Room for fraud

Sometimes in order to open an account, customers submit fake or forged documents to financial institutions. Such documents are very hard to detect through a naked human eye. Failing to identify them and onboarding the fraudulent entities can cause problems for banks; sometimes leading to legal actions against the organization for non-compliance with KYC/AML laws.

Automation to the Rescue

From the discussion above, one thing is clear manual verification is not an effective method for document verification. The advancement in technology and the emerging artificial intelligence algorithms are redefining the verification process. Now, with the help of advanced digital solutions, documents can be verified remotely, eliminating the need for physical interaction with customers. Users can digitally submit their identity documents from anywhere in the world and get themselves verified within seconds, all thanks to automation.

With automated document verification in place, businesses can streamline their identity verification process and save costs while enhancing the customer onboarding experience.

Machine Learning Revamping Document Authentication

When it comes to document verification, there are two major things to consider.

  1. Is the document authentic? For instance, checking for the document template, rainbow prints, and other attributes.
  2. Is the information on the document correct? For example, checking for tempered or photoshopped information in the document.

Based on the AI and machine learning principles, online document verification solutions can efficiently check for both document format and the information present on the document. Advanced technology can easily identify forged documents. By extracting the data from the MRZ code, the intelligent solution checks the data against the information present on the document. In the case of a mismatch, the system can identify tempered information and decline the verification. All this process is done within a fraction of seconds. Moreover, with every verification performed, these solutions become more intelligent and efficient.

 

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