During customer onboarding, document verification plays a vital role in enabling companies to securely and efficiently validate new clients. Examining the authenticity of identification documents ensures that various organizations such as financial institutions, banks, and cryptocurrency companies can verify the identities of individuals involved in high-value activities.
Document verification involves scanning official documents like driving licenses, passports, and bank statements to check for various features, including watermarks, fonts, stamps, and holograms. Furthermore, the personal information provided in these documents, such as date of birth, name, and address, can be validated and cross-checked with third-party sources.
Online document verification has become more crucial as more clients interact with companies online. When opening a new account, it is common for individuals to upload their ID documents along with a short video or photo to establish their likeness. However, clients expect this process to be swift, even in real-time, which challenges financial institutions to deliver within a short timeframe. Traditionally, a dedicated team is usually required to manually verify the ID documents, making the process costly, prone to errors, and time-consuming.
Due to this, many companies are switching from conventional to automated systems.
Understand the Science Behind Online Document Verification
The cornerstone of online identity verification lies in the authentication of government-issued ID documents. There are two primary methods to verify client IDs. The first method involves utilizing automated technologies such as AI-based systems, optical character recognition, and machine learning solutions. The second method entails the involvement of professional document verification teams. Manual document verification methods are prone to errors and significantly more time-consuming.
Figure Out Document Forensic
- Cross-check physical documents with online documents.
- Analyse changes in details, printing style, and other unsuitable details.
- Verify the information provided on documents with government databases.
Key Inquiries to Pose to an Online Document Verification Vendor Prior to Selecting their Services
It’s crucial to investigate a few questions before investing in an online document verification solution. The checklist includes:
- What is the capacity of the verification solution in terms of supporting documents? How do vendors determine the count of documents issued by governments worldwide? In cases where a government issues multiple documents with identical specifications, how will the vendor count them (as one or multiple documents)? Additionally, how many countries does the solution offer support for?
- Next, evaluate the dependability of the online ID document verification solution. Does it have the capability to detect various forms of document tampering, such as digital document forging?
- Lastly, assess the speed at which the solution can verify different types of documents. If the verification process exceeds 5 minutes per document, it may not be an efficient solution for organizations with high volumes of daily customer onboarding.
No doubt that these questions are immensely important, but there is one more question that business should ask their vendors:
What is the document verification velocity and the rate at which documents are verified?
This question is crucial because many documents become obsolete each year, being replaced by advanced versions. Therefore, it is essential to determine whether the solution can effectively verify new documents that are issued over time.
The Significance of Selecting the Right Document Verification Solution to Opt Business Success
Governments at the international level are increasingly issuing a variety of document types, rendering older document formats obsolete. The need for online document verification solutions has become paramount, as they enable real-time verification of both new and outdated documents, resulting in cost reduction and improved customer experience.
What are the Characteristics of an Outstanding Online Document Verification Solution?
Ultimately, the effectiveness of KYC document verification solutions hinges on their construction. Advanced fraudsters utilizing superior technological methods can easily manipulate poorly designed systems. Online ID verification technologies that rely solely on one type of verification become vulnerable once their weak points are identified. This can result in a subpar customer experience for businesses. Furthermore, weak document verification solutions can expose businesses to fraud, including money laundering, theft, and embezzlement.
The ideal online document verification solution aims to combine efficiency, affordability, and security while effectively capturing client data. It should be able to adapt to emerging document types and industry trends. The algorithms employed should be robust enough to withstand manipulation techniques employed by scammers. They should either possess self-learning capabilities or offer comprehensive solutions that do not rely solely on machine learning.
Key Takeaways
A well-designed online document verification solution should possess adaptability to industry trends and resilience against manipulation tactics employed by scammers. It should seamlessly integrate affordability, efficiency, and security while effectively capturing customer data. By implementing a robust document verification solution, businesses can reduce costs and safeguard themselves against fraud and financial risks.
Online document verification plays a pivotal role in modern client onboarding processes. Selecting the optimal solution is critical for companies to thrive in the digital era.
Also Read: KYC Onboarding – Protecting Businesses from Bogus Clients
