Verification of documents is now essential to preserve the credentials of the company. It is done to ensure the organization interacts with the right person. Businesses that do not verify their clients have to face fraudulent activities. The biometric systems allow only authentic customers to bypass the security, and hackers can’t decode the system. The company’s core value is preserving users’ credentials and providing seamless services. The organizations utilizing these services have a remarkable rise in their revenue.
How to Verify KYC Documents?
The Know Your Customer (KYC) is done to get thorough information about the user. Businesses must have to get comprehensive data on their users so that they can minimize their risk rate. The online document verification requires different authentication methods in industries depending upon the papers they are dealing with. It is done in the following steps:
- Data Collection
In the initial step, the system asks the clients to capture a picture of the papers, such as their identity card, residential address, and utility bills. These forms contain the user’s information, which is taken to verify the customer’s identity. The customer then has to upload this data on the website. The solution initially processes the data and checks that the user has given all the required data. If any information needs to be included, the system will ask the client again to submit it.
- Information Extraction
After collecting the data, the task of the document validation services begins. This solution extracts all the required and valuable information from the papers. Optical Character Recognition (OCR) is used for this purpose, a tool that reads the data and converts it into templates. It can read all languages and handwriting, and the system then compares this data. The solution makes sure that the customer has given relevant data. For example, clients were asked to provide the bank statements but given the identity card.
- Data Validation
Data validation is done to check that the information submitted by the user is valid and any kind of fake or photoshopped data is rejected on the spot. The system contains whether the lighting of the picture is porer or not, and color analysis is also done so that the solution can adequately read the information in the papers.
- Manual Authentication
Manual authentication is done in the final step. After comparing the data, the results are displayed. The verification process goes further if the client has given authentic information. Otherwise, the red flag is shown, which means the client has to provide valid information. In some cases, clients are asked to submit their papers again so that their identity can be adequately verified. The risk rate of the customers is also measured so that the organizations can make strategies to deal with the users accordingly.
Why Document Verification Software is Crucial in Banks
It is only possible for the banks to survive with the biometric systems because these solutions onboard the customers after proper verification. The financial institutes must ensure that their users do not indulge in irregular activity. If they do not have adequate information about their customers and are not aware of the source of income, then there are chances that they can onboard illegal persons who can scam the company shortly.
Real-Time Use of the Document Checker
Uber companies can make sure that they are interacting with the right driver. It can be done to check that the car’s owner is authentic and not involved in mysterious activities. The organizations must verify their drivers; otherwise, they can harm the company. Besides this, companies need to perform KYC on their clients while onboarding to get thorough customer data. In 2021, Belarus faced many banking malware scams, while Russia was exposed to telnet attacks, which is more than 3.8%. Verification of documents is necessary in this sector so that they can check the validity of the users. Other than this, the banks can get their customers’ updated knowledge to build strong relationships with them.
Conclusion
Verification of documents aids in ensuring the surveillance of the organizations, as they allow only authentic users to bypass the office territory. This way, the business can preserve the clients’ credentials and hold them against fraudulent activities. The client trusts the company that keeps their personal information safe, and happy clients also recommend the business to others. Organizations can increase their clients by satisfying their existing clients and understanding their requirements. The bank KYC documents also aid in compliance with the regulations so that the companies can reduce their penalties.
