Banks and other financial institutes check simple identity proof documents such as Government issued ID cards or secondary documents, utility bills, credit cards, and others. The bank representative can confirm the ID by checking the picture on the documents and ensuring all the visible security features are legitimate. After ensuring the papers are not counterfeit, they photocopy the documents and store that in the record, and the account will be opened.
After the 2001 Patriot Act, banks and other businesses must comply with know-your-customer (KYC) and anti-money laundering (AML) regulations. It involved customer document verification and developed a complicated onboarding procedure to protect businesses from financial scams. Then nearly 20 years later, the coronavirus pandemic changed everything, and the digital banking system proliferated. But this also enhances the significance of online document verification to reduce money laundering and develop a safe and secure business environment.
What is Document Check Online?
To utilize the services of banks and other financial institutes, customers have to confirm their identity. Before the digital world, customers submitted papers by physically visiting offices. The organization’s representative would attest to the documents and confirm their legitimacy. Online document verification enhances this process with advanced technology. Because now, many customers and businesses rely on the Internet. Online Document verification checks allow organizations to onboard a new customer remotely. They don’t have to visit the office or physically appear for biometric verification. All onboarding checks can be done from anywhere by verifying documents online. Digital document attestation enhances the processes and impacts companies with significant advantages.
Seamless Onboarding Experience
According to AML, companies must meet rigid regulations before onboarding customers or corporate businesses. For that, they have to follow the KYC procedure to confirm customer identity. It assists companies in onboarding legitimate customers. The traditional KYC verification process is complicated and time-consuming. It damages the company’s image and badly influences the customers, which increases the company’s clients’ bounce rate. The onboarding process is only useful when it is convenient for the customer.
Strengthen Companies Security
The traditional document verification process is vulnerable to scammers because it relies on human resources. Manual document checking is error-prone; a little human error can impact significant revenue loss for companies. Companies must meet the various laws to confirm they are working under the legitimacy policies. Compliance with these laws is impossible without proper document checking. Online documents check the papers thoroughly by machine learning technology, so the chance of mistakes is reduced. It also utilizes an AI framework to reap accurate results so companies can onboard new customers confidently. Fraudulent documents are the first step of any financial scam. It makes it simple to open a fake account to proceed with illicit activities. Verified documents by advanced technology ensure the companies and customers prevent potential threats.
Ensure Advanced Compliance
In the digital world, businesses must comply with various strict regulations. These obligations assist companies in curbing financial scams. It is compulsory for businesses to comply with these laws so they can save themselves from hefty penalties. Noncompliance with AML regulations causes financial scams, and the company faces legal complications. Regulations compliance is a factor that financial businesses can not overlook. Online document verification ensures compliance with relevant regulated laws, which reduces fraud risk for the company. Compliance with AML regulations assists companies in following other obligations, including Know-your-customer (KYC) or Know-your-transaction (KYT). For effective AML compliance, companies must rely on advanced technology. The verification of documents are proof that financial organizations and businesses can show to regulatory authorities in the case of a scam. It will keep them compliant and protect them from fines.
Conduct Enhanced Due Diligence (EDD)
Compliance with regulations is not enough, monitoring their account activities is also essential to protect the company’s financial ecosystem. Fraudsters and cyber attackers always search for loopholes in the banks’ and businesses’ security systems to deceive customers’ data and account information. One-time online document verification is not a standard technique to protect companies from fraud. For enhanced due diligence, the ongoing monitoring of an account holder is a vital part of reducing financial scams. It will provide in-depth detail about the real-time transactions happening from the account to confirm the source of funds. Moreover, it also detects suspicious activities such as large withdrawals and deposits or irregular purchase behavior.
Improve Customer Trust
The online document verification process builds trust between the customer and the company. It shows the company is worthy and loyal to clients. When customers know the business utilizing advanced technology to secure their data, it will increase trust in the organization. Digital advancement is evolving document verification, pivotal in companies’ growth.
Impact of Online Document Verification
AI and automated document attestation make the onboarding process fast and accurate. Online document verification utilizes machine learning technology to detect patterns and anomalies that are missed by human eyes. Verifying documents online also assists companies in storing the data in a secure database so the customer’s private information keep protected from cyber attackers. It ensures the data is verified and there is no counterfeit element from the papers.