Trust is key when doing business or getting financial services from banks. However, today’s emerging technologies provide higher accuracy with the help of the OCR system. They also raise trust issues among customers unaware of the new methods. To gather them and process their customers’ personal information for identity verification.
Customers’ documents are the ideal source of information to verify their identity. It makes accessing and extracting data from documents a common practice in businesses. One of the main reasons is the lack of standardization of documents for verification from different places. Without automated data extraction solutions, processing documents can be quite difficult for businesses.
Document Verification as a Security Measure
Other finance businesses see document verification as a method for accurate identity verification and a way to boost customer engagement. It involves more than the monitoring of transactions and verification of identities. It allows businesses to get better insights into buyer personas and customer trends to offer personalized services and products in the future.
Technologies like OCR scanning services have enabled businesses worldwide to streamline and accelerate customer onboarding. Accurate data extraction from thousands of identity documents becomes a problem for businesses in the manual system.
Today’s online platforms have opted for online customer onboarding methods where they authenticate documents by extracting and verifying clients’ personally identifiable information.
KYC Verification with OCR Compliance
OCR technology, as part of online document verification solutions, makes it more convenient and accurate for businesses to detect documents with AI algorithms. It allows financial institutions to perform verification with ID documents from several foreign countries with built-in template matching techniques.
Optical character recognition technology makes this possible by scanning identity documents and extracting customers’ personal information. The process involves converting the scanned images to a suitable format to allow in-detail analysis and storage of documents.
OCR is also capable of converting texts in the form of non-Latin characters into Latin, to perform accurate verification. It is used by various businesses to extract the required personal information from any given type of document. It includes ID cards, driving licenses, residence permits, passports, and utility bills to extract with the OCR system.
Perks of Employing OCR Scanning Services in KYC Verification
OCR technology is also used to extract information from MRZ codes, which include lines of numbers, characters, and spaces. It is usually at the bottom of passports to compare and verify the customers’ personally identifiable information.
By incorporating document verification solutions with online optical recognition technology, businesses can significantly cut operating costs and improve the efficiency of their system. Additionally, it improves the accuracy of data extraction by reducing human error. It allows businesses to improve their KYC/AML compliance regime.
Compared to the long and tiring manual processes of document verification that used to be deployed by businesses. OCR-based document verification is considerably faster and reduces the burden on organizations. Many customers are reported to abandon companies that make them go through long verification processes.
Collecting and processing customers’ information are not the only challenges that businesses face. They also need to store and protect their client’s personal information. OCR system provides complete control of the information in the hands of the company.
It also provides better management of previous data, eliminating the need for managing or processing paper documents. The information is stored in digital format and can be kept safely for as long as the company needs it.
Businesses can manage their operations with fewer employees, reducing the need for manual work. Having less people work on verifying customers’ documents means that the company can significantly cut costs. They can also use those employees for other important tasks.
Optical character recognition technology provides a cost-efficient way to verify documents as part of KYC verification solutions. There are a few drawbacks as well. Moreover, the initial versions of the technology had issues with pictures of identity documents or the quality and brightness of the image.
It is critical for businesses to choose the right service provider for document verification. KYC verification offers mobile and web camera integration for OCR systems through different SDKs and allows accurate scanning. The technology used in the document verification solution contributes to convenient customer onboarding and a boost in conversion rates.
Scanner OCR software for Business combines AI to perform instant image-to-text conversion of documents into digital PDFs. The solution extracts information from a wide range of documents, including handwritten business records, official letters, invoices, etc.