Identity verification has become extremely vital for organizations to discourage all kinds of scam attempts. For successful registration and authentication, the service providers commonly ask customers to give some evidence for identity authentication. If verification is performed through manual means, it becomes low and ineffective for high-risk exchanges. It can have serious consequences for a company e.g. loss of clients as well as loss of investments. Furthermore, it tarnishes the brand’s reputation. A practical solution to the problem is that businesses should perform live document verification for enhanced security in the future.
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The Importance Of Online Document Verification In Financial Departments
With the advancement in technology, all kinds of scams and the risk of fraud have increased. The criminals try to breach the onboarding process by submitting fraudulent documents i.e. they do not fulfill the security checkmarks. They try to fabricate the documents e.g. writing incorrect address and name. To keep a track of all the scamming attempts, illegal funding, and the involvement of corrupt companies, an effective authentication technique is required. Hence, online document verification is the key.
What Is The Process Behind Live Document Verification?
The online document verification operates on AI-based algorithms and machine learning technology. The 3 step process is in the following:
Step 1: The customer uploads the image of the document immediately.
Step 2: The system uses OCR technology to capture the relevant information from the government-issued document.
Step 3: The system verifies the information and the format of the document. Then it generates a verification message on the client’s screen.
What Type Of Documents Can Be Verified Using The Latest Technology?
The following documents can be verified all over the world and the technology supports 150+ languages.
- ID card
- Passport
- Employee letter
- Envelopes
- Driving license
- Tax bill
- Insurance agreement
- CPR smart
- Utility bills
- Rent agreements
What Can Be The Challenges In The Document Verification Process?
There are several hurdles and challenges in the system and some of them are mentioned below:
Lack of Data Availability
If companies want better data protection and service provision, they should look for digital database solutions. Personal certificates and other documents should be double-checked through the official digital databases given by official bodies. If such database solutions are not present, the document authentication process should be stopped. Consequently, document attestation requires a lot of data that needs cross-checking from multiple reliable sources.
Reliability issues
There is accuracy and speed in the live verification process as compared to the manual system but the digital system is not error-free yet. Thus, criminals can find novel ways to compromise the integrity of the system. OCR technology services are also used for this purpose.
Frequent digital document authentications
For retaining clients, it is crucial that verifications be performed inaccurate, effective, and customer-friendly ways. It will help establish a brand image that is trusted by many. It leads to the establishment of effectual document verification solutions that can perform multiple authentications and engage a big number of customers. Therefore, repeated monitoring requires that the company regularly screens already existing clients for integrity and reliability.
The Positive Side Of Online Document Verification
Despite several challenges, there are multiple benefits of online document verification. Some of them are mentioned below:
Fast Completion Time
The online platform has eliminated the need to visit companies and submit documents for authentication. The customer only needs to upload them digitally now. The follow-up time that used to be several days has now decreased drastically. Hence, the customers can attain fast results electronically.
Better Customer Experience
When the onboarding service provided to customers is satisfactory, they report lesser complaints. As a result, the business is able to welcome more clients and maintain a strong rapport with them. It also brings profits to the company without the risk of scam attempts.
Practical Strategies
The online document authentication process is simple and practical because it has reduced unnecessary steps in the verification process. Now they only need to put a picture of the document or allow it to scan through live video streaming. Thus, the process uses lesser resources and has become stress-free.
Final Thoughts
Organizations using the online document verification method have become proficient at catching fraudulent activity. It has proved to be a useful technique for deterring criminal activity. If fraudsters used to fake credit cards, utility bills, bank statements, and other documents, the online authentication strategy does not verify them. When the documents are genuine, the system scans the information and sends an authentication message to the user. In this way, the document verification method is fast and efficient. Even with all the benefits of the technology, there are still some shortcomings the technology which will be resolved in the future.
