An Inclusive Guide to Documentation Step

Short Summary: Explore how manual and digital KYC Verification Solution processes are implemented in organizations. Understand the steps of the document verification process in this guide.

In many countries, Know Your Customer (KYC) and anti-money laundering (AML) require a KYC verification solution to accomplish the identity verification process. Experts forecasted that from 2019 to 2027, the projection of growth in this market could be 14.6%.  There are three compulsory steps are there in KYC verification which are:

• Document Validation
• Document Collection
• Data Extraction 

Document collection steps include a collection of images of the passport or driving license or any utility bill required; that photo is uploaded electronically to the system. It is then the system’s responsibility to check whether the documents are complete, the image quality is acceptable, or if it’s blurry through the document checker. 

Making these all present is the most important and necessary step to complete the verification process. Suppose anything is missing in the KYC verification or any document is incomplete. In that case, near-field communication (NFC) is often performed to complete that document. 

Steps of KYC Verification System

After approval of the image, the next step is extracting data from the provided documents. The information provided manually by the user at the start of the interview is then compared to the documents provided physically to the system. 

A personally identifiable information system is used to compare this information, as this one is considered the most authentic way to verify and compare the documents through a KYC verification solution. This document’s data is compared to identity fraud watchlists to ensure the user was not involved in any criminal activity in the past. 

KYC verification Features

Some barcodes on the documents are also being checked through scanners to ensure that printed data matches the data and that the papers verified on which that information is printed are also real ones, not forged. 

Sometimes, the document’s information doesn’t match the government system’s information, and in that case, the user’s application gets rejected, or they are asked to provide authentic documents and genuine information as a second chance to prove them legal. 

Documents Identification

While identifying the authenticity of the documents and validating them, some processing is needed first. This is a lengthy but necessary step in completing the KYC verification Solution process. 

This includes checking special characters in passwords, all the needed information in the documents, and the validity of the records collected at the time of onboarding in the organization. CIAM stands for customer identity and access management security strategy, an advanced way of authenticating documents for years through the KYC verification Solution process. 

Verify Documents Online

Nowadays, verification is now physically occupied. Experts have introduced Online verification methods that save time and increase the work quality by sharing human lives through machines. Many financial institutions use the KYC verification solution process as a must, which is:

• Credit unions
• Banks
• Lenders
• Thrift Institutions
• Brokerage firms
• Insurers
• Investment Firm
• Fintech companies

These companies, entrusted with significant financial transactions, place a premium safety feature on the security of their confidential data. To ensure this, they require a robust KYC verification Solution process. 

Moreover, they must safeguard their employees’ working data, particularly those handling sensitive departmental information. Implementing an online KYC verification Solution process in their system offers numerous benefits, notably enhanced security and peace of mind. 

Benefits of Online KYC Verification Solution

Several benefits are there of using an online KYC verification system, which is as follows:

• Accomplishing the Requirements

New users’ identities must be verified, and the documents required depend on the industry in which the organization works. For meeting regulatory requirements, the KYC verification Solution process is highly effective and widely accepted.

• Alleviate Misrepresentation at Working environment

Anything an association’s functioning space, you should be cautious enough not to be trapped in fake action, so you should go to preventive lengths to safeguard yourself from extortion.

• Laying out and Keeping up with Client Trust is Vital

Clients can unwind and feel more secure When they are sure that their information and individual data are secure. To prevent information leaks that could jeopardize customer trust, businesses must prioritize a robust KYC verification Solution system.

 After all, the customer forms the backbone of an organization’s success.

• Speedily Manage the Process of Customer Onboarding

 In many cases, the KYC verification solution process can be done very quickly; thus, when paired with automation, it can make onboarding processes more advanced and quicker. Manual reviews take time, and hence, they disturb the other workings due to a lack of speed, waste time, and other activities that need to be done by teams in different departments. 

Final Thoughts

Organizations need to take care of digital KYC verification solution very precisely. If there remains any issue during document verification, then completing the authentication process can be very difficult.

Tags: digital KYC verification solution, KYC verification