KYC Document Verification

KYC Document Verification – Making Financial Sector Fraud-Free in the Digital Era

Businesses may minimize customer onboarding time significantly faster thanks to online document verification software. Businesses can extract informational data from ID documents using AI-based OCR software. However, it is a convenient tool for extracting data from the customer’s document. Online document verification helps to onboard and adhere to KYC bank regulations.

By verifying the legitimacy of ID documents throughout the customer onboarding process, document verification solutions can assist banks in securely and quickly verifying new customers.

How Digital KYC Solutions Help Document Attestation?

Now,  banks are trying to make the process automated which can offer customer convenience and also helps in preventing fraud. Manually entering client data into the system involves a lot of repetition and work. Banks require a tech-based consumer onboarding strategy in this “do it now” era. Furthermore, more than simply reviewing any document manually is not only required for technology to tackle these problems. However, KYC verification must be able to recognize documents that have been changed or forged. Execution needs to be strategic, rational, and customer-focused. For instance, with Know your Customer (KYC), banks must follow regulations, and clients expect quick and simple access to the financial system. Customers and banks may both benefit from digital solutions powered by AI.

Concerns Banks Currently Face in Onboarding of Customers

Despite costing so much money, the manual process does not improve the client experience and is slow, prone to errors, and unsafe (due to a lack of regulatory compliance). The majority of customer onboarding problems cause by manual systems. It further explains the following point:

KYC Document Verification

Get Rid Of Manual form Filling System 

The regulators have an increasing demand for clarity. It is hard to support all of these demands in manual systems. From the view of the customer, the procedure is challenging and unwieldy. 

Three key factors are the following: 

  • Commercial side
  • Contemporary technology 
  • Regulatory compliance

These three pillars working together will demonstrate the benefits of online document verification. 

Here are solutions to facilitate banking system and their customers more efficiently with the following methods:

Face Verification

Simply put, the user uses their smartphone or webcam to shoot a selfie. The software verifies the person’s physical existence. Using 3D depth perception color texture, AI-based techniques may distinguish between a photograph and a real-life face and attacks using spoofing avoid. For verification, current solution providers also use micro words.

Document Verification

The app checks documents using a computer or mobile device’s camera. Typically, it involves checking government-issued identity documents like ID cards, passports, or licenses. Online document verification establishes and proves that they are not forged or illegal documents. To confirm that the document is genuine, it also examines the design.

Address Verification  

An essential aspect of confirming the customers’ identity is their actual addresses. It serves as a powerful deterrent to identity theft. Digital KYC solutions verify that the document is real and that the address listed is indeed thereby “reading” government-issued documents like ID cards. The top providers of KYC document verification also give hybrid solutions, in which a computer first checks the document before being double-checked by a qualified individual to verify accuracy.

Two Factor Authentication

The two-factor authentication method combines the internet and a phone. A code is sent to the phone through various techniques, such as emailing or mobile messaging, when the customer enters their phone number into the application or software. The buyer then asked to finish the two-factor verification process by entering that code into the web portal.

Anti-Money Laundering (AML) Screening 

Before engaging in any type of commerce with its clients, banks are required to do expanded due diligence in addition to getting to know them. To make sure they are not on the anti-money laundering watch list, they must first screen them. The service is also accessible to banks online. The document authentication solutions available today also constantly update their databases, ensuring that when they capture a screenshot, the information is updated when it is compared to the most recent data.

Know Your Customers through Customized Documents

Smart digital technologies can interpret handwritten notes and provide options for custom document verification. It does so by using the KYC record authentication verification, which can carry out the authentication needed thanks to AI-based machine learning.


For banks, the integration and implementation of KYC document verification must be commercially viable. The document verification process must adhere to all bank laws, whether they are digital or manual. Although most banks spend a lot of money on compliance, they struggle to manage from onboarding to finding high-risk transactions. Additionally, these services are a practical and affordable choice; compliance meets, and clients can get in touch with banks immediately.