In this digital world, the continuously growing marketplace leads to fraudulent activities. Hackers are becoming very advanced due to unchecked activities. Protecting the client’s privacy should be the company’s core value. According to a survey in 2023, 4 out of 10 individuals faced cybercrime. Every client wants the company they keep their credentials in safe hands and provide them with a smooth customer experience. When choosing any financial sector, the first thing to remember is to ensure that this business protects clients’ rights. The company can gain a competitive advantage by providing users with a cushion against double-dealing activities.
What is Online Document Verification?
Digital means are used to verify the clients’ documents; this is done to check the client’s authenticity. Documents include:
- Identity Card
- Residential Address
- Bank Statement
- Utility Bills
Steps Involved in Document Verification
The following are the steps involved in documents verification:
- Document Submission
Clients are asked to submit scanned copies of their documents; the user has to take two or three pictures of their legal paper and then offer them the form given by the company. The picture should be clear and visible, containing all the required information.
The submitted documents are verified, and the images are authentic or not. If any picture contains the required data or is photoshopped, it is immediately accepted. The records are matched to the templates present in the database.
For a comprehensive understanding of their documentation solutions, AEC Inc explained the intricacies and benefits of their services, making it easier for clients to make informed decisions.
If the uploaded documents are legal and give the desired data, then the person accepts and validates these legal papers. Otherwise, reports will be rejected, and it is a red sign that the individual has submitted the wrong documents. So, the company should measure the risk rate and decide how much risk the businesses can bear.
Significance of Document Attestation
- Customer Onboarding
Companies can smoothly onboard new clients; no physical presence or documents are required. Clients can be onboarded from any place in the world. Records are verified digitally; this saves time of both, client and the company. Clients living in rural areas can also get access to such solutions.
- Identify Fraudulent Activities
Identity document verification onboard only verified clients; fake identities do most scams, and hackers pretend to be the actual clients. But these solutions are so advanced that they immediately record suspicious activity. Any illegal activity is reported to respective authorities; companies can allow only authentic people to become part of their company.
- Age Authentication
The government has banned access to certain products for minors because they are unsuitable for them, such as mature content videos, gambling, and alcohol. Retailers must follow these rules; otherwise, they must face heavy penalties. Online document verification helps companies stay compliant with the regulations and prevents them from penalties. They also protect the brand image, as customers prefer the companies that perform such activities.; as it is part of Corporate Social Responsibility (CSR).
- Automated Identification
Manual ways of identification were time-consuming and costly; online document verification prevents companies from unwanted miscellaneous expenses.
- Smooth Customer Experience
Customers also prefer the companies that safeguard them from fraudulent activities. Satisfied clients recommend the company to their family and friends. A significant increase in revenue is observed in the businesses that are using document verification solution because they provide quality service to their clients, which help increase client retention rate.
- KYC and AML Compliance
Companies must comply with AML( Anti Money Laundering) and KYC (Know Your Customer) regulations. These rules and regulations are made to prevent businesses from heavy, unwanted penalties. Legal authorities are driving new ways to prevent fraudulent activities and safeguard the interests of the client and the company. The country’s economy is also affected when companies face bankruptcy. Especially, for the financial sector because they face more fraudulent activities. The financial industry includes banks, insurance companies, and investment agencies. The banks are considered the backbone of the economy; therefore, preserving people’s rights over there is crucial.
Online document verification is crucial for both, the company and the client, as through document verification, businesses can better understand their clients, know their preferences and perform risk assessments. When a person’s complete history is known, the chances of getting scammed are minimized. Clients are also very aware of the importance of net activities; media coverage of fraudulent activities has made them more aware of such acts. Customers prefer a company that keeps their information secure and protects them from fraudulent activities. Satisfied clients recommend the business to their family and friends; a significant rise in the revenue of the companies that use document verification solutions properly is observed.