The fintech industry is accelerating its use-cases to several financial institutions and the banking industry. The rapid growth of the fintech industry is due to the interest of people in financial services. While signing up the customers of financial services via mobile or web, there is a dire need of adopting a multi-layered approach in which integration of identity verification and authentication APIs. A study shows that around $500 million is spent on KYC solutions by financial institutions. This need is never going to end. Protecting the business from online fraud and bad money makers, identity theft and cyberattacks in the online system is the primary goal.
Embed Anti-money Laundering background checks in the legitimate systems to curb the suspicious opportunities of criminals. This is a threat, to any online business which is adopting fintech solutions or deal with money online. It could be an e-commerce website, online bank portals, insurance companies or online charity platforms. Online payment scams are getting more common and are the target of fraudsters who dive into the backend system and evaluate security, find loopholes, jump into the functional components and run malicious executables.
There could be a bunch of security measures that collectively contribute to the completion of security perspectives of a system or online product. A business that has to deal with customers online needs to keep in place stringent installations of security systems that could bestow the goal of transparency and safety. The primary step for online platforms is to ensure Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) to authenticate each onboarding customers with several verification solutions. Document proofing here holds great importance. It could act as a shred of evidence against the purpose of identity verification. A streamlined online document verification service can help in identity and document proofing in real-time.
Electronic Identity Verification
In electronic Identity verification (eIDV), through digital means, identity is verified remotely in mere seconds. Eliminating the time taking traditional verification methods, which requires physical presence of a person to verify identity against supporting documents. These documents could be an id card, driver’s license, utility bills, and passport. Instead of verifying through traditional methods where staff verify each entity individually and they are waiting in the queue for their turn, electronic id verification has got it covered. Online identity document verification is a less time-consuming task, cost-effective and reliable solution for the institutions to authenticate customers.
Additionally, verification of customers against several prohibited lists of entities and sanction lists which include exposed persons and instead of manual verification of a person through a bunch of databased is a headache, replacing this manual verification with automated AML screening can help reduce workload and introduce efficient processing.
How Document Verification is getting it Covered?
Electronic document verification can help differentiate between the real and fake onboarding identities across the world. For the purpose of enhanced security within the system, there is a need for comprehensive data structures and algorithms based solutions that identify the template of the document and after extracting the data, validate it with the provided information.
Optical Character Recognition: OCR is a technology that is used to extract the data from the document, from different grids based on the template the document is up to. This helps in the efficient recognition of data and its verification.
Also, the authenticity of the official document is done to make sure that documents are official and original. Any tempered data on the document is captured and the request of the user is rejected on the spot. This serves the idea of authentic customers who have no bad intentions regarding ruining the online system and services with malicious activities.