Verification of Documents

Financial industry experience inconsiderate fraud and compliance risks while they attract global customers. During onboarding, it has become crucial for banks and other firms to authenticate identities. However, criminals are making simultaneous efforts to exploit businesses and reap illicit benefits. They use financial systems such as banks to launder their proceeds of crimes and escape AML regulatory checks. 

In order to better authenticate customers’ identities, financial institutions need to invest more in verification of documents mechanisms. Technologies such as Optical Character Recognition (OCR) are further streamlining their legitimate customer onboarding processes by providing automated and accurate data extractions. The blog covers how AI-powered verification of documents helps the finance sector provide risk-free and frictionless banking options. 

Frictionless Document Checking with AI-Powered Solutions

Banks and other financial institutions are looking forward to taking advantage of digitization and boosting customer engagement. This process involves more than just transaction monitoring and identity authentication. For criminals, it has become easier to create synthetic identities and escape identification checks to launder high sums of money. 

Fraudsters use document forgeries to make changes within the existing information or create entirely new ones. In both ways, it becomes challenging for financial institutions to identify these imposters. With robust online document verification solutions in place, banks and other firms can gain better insights into customers’ persona and ensure legitimate onboarding. 

High fraud risks and criminal threats are exposing financial institutions to customer drop-off. While making their operations more secure, banks have somewhat increased the friction during onboarding. Therefore, to provide a hassle-free experience financial institutions require automated verification of documents. Moreover, manual methods are prone to human errors that can lead to discrepancies in data extraction and ultimately inaccurate identity verification. Document checking serves as an additional layer of security while validating global customers. 

As templates and languages differ across countries, criminals see this as an advantage to forge information. However, with robust IDV solutions in place financial institutions can access global databases to validate documents accordingly. More details regarding how AI-powered verification of documents work is in the next section:

Validity Checks

This involves validation of the documents to ensure they are original and hold authentic information. Criminals often use fake forged details to bypass identification process which makes it crucial for financial institutions to bring more efficient document checks in place. 

Format Cross-Check

AI-powered solutions are capable of self-analyzing which makes them more reliable. With their ability to cross-check documents with global databases, financial institutions can better identify customers belonging to any region. Criminals often target high-risk countries to escape regulatory checks and launder high sums of money. However, with effective machine learning-enabled verification of documents, banks and other firms can counter their attempts. 

MRZ Code Authentication

AI-powered IDV solutions offer robust validity checks by providing automated verification of documents and extracting the required data using OCR. Similarly, by authenticating MRZ, these tools highlight forgeries or even minor tampering within the information. After this, the system decodes this code and cross-match it against the details present in documents. 

Detects Signs of Forgery 

Documents are prone to wear and tear as they are made of paper. Criminals use this feature to carry out malicious activities. They can tamper with information, do copied signatures, or crumble edges to dodge the identification process. However, AI-powered document attestation highlight even minor changes. It also identifies folded corners, different ink types, holograms forgeries, and much more. Advanced verification of documents solutions serves as countermeasures for financial institutions against criminals’ efforts to create fake identities.

Identifies Templates, Holograms, and Other Features  

Government-issued documents have certain distinct features that make them legitimate and ensure the person holding these has a true identity. Moreover, these are the exact attributes that criminals forge to make their documents look original. Features such as rainbow prints, holograms, ink color, paper type, and watermarks serve as authenticity points. AI-powered verification of documents solutions validates these attributes while validating a customer’s identity. 

Perks of Incorporating Online Document Verification for Financial Institutions

With robust technologies like OCR, AI-powered document authentication solutions are helping the finance sector to upgrade its customer onboarding process. By automating identity validation through seamless data extraction, banks and other firms can register more legitimate clients in less time. Ultimately, online verification of documents eliminated inaccurate data entries while identifying any forgery within the details. 

By integrating AI-powered verification of documents, financial institutions can cut down on additional costs they pay for customer identification. This way they can not only drive efficacy within their operations but also increase client retention. OCR-based data extraction and analyzing MRZ codes is reducing the friction and time taken for identity verification. 

Concluding Remarks

Due to complex and long onboarding processes, customers abandon financial firms and move to some other institution with less time. AI-powered document checks reduce the hassle for users while helping banks assist legitimate entities. This way, AI-powered IDV solutions not only mitigate fraud risks but also uphold the integrity of the finance sector. Automated verification of documents is a reliable option for banks to secure their operations. 


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