Global fraud cases are increasing rapidly in the fourth industrial revolution age, especially identity theft. Business experts want to use a digital solution that can fight fraud and facilitate compliance with KYC & AML regulations. Applying the latest online verification of documents services can help enterprises achieve business milestones timely and avoid hefty fines from global regulatory bodies. This approach not only strengthens customer relationships but also maintains market credibility.
The following sections of the article look closely at the significance of online verification of documents and how corporations can use it to fight fraud.
Document Verification Services: A Quick Insight
A record validation process refers to client ID validation by examining government-issued documents. This way, customers can only provide passports, national ID cards or rental agreements for instant validation. The innovative software also examines the original picture of users and cross-checks the image to discourage bad actors. This way, corporations can easily fight fraud and attract real clients worldwide.
According to Markets & Markets Research, the global IDV or document verification market will exponentially grow to around 18.6 billion dollars by 2027, showing a CAGR of 14.4% from 2022 to 2027.
A major factor behind the growth of the document validation market is rapid digitisation initiatives. Moreover, the use of automation tools, artificial intelligence (AI) and Machine Learning (ML) models are contributing to the growth of the IDV market. With widespread internet use and growing e-commerce activities, enterprises worldwide will actively implement the innovative approach. Finally, the use of biometrics is widespread which further contributes to the growth of the identity verification market.
By region, North America will have the biggest market share in the course of the predicted period. Adopting Machine Learning (ML), automation tools, and Artificial Intelligence (AI) along with high public awareness is one of the biggest contributing factors to the market’s growth in the jurisdiction.
By deployment mode, the cloud segment will show the greatest growth during the predicted period. With the installation of low-cost cloud services and easy availability of IaaS & SaaS models, the cloud-based deployment method is gaining popularity in the IDV market. Hence, the importance of the document verification market becomes obvious.
Complete Procedure Behind Online Verification of Documents
There are several factors involved in the smooth functioning of document authentication solutions. For instance, what is the type of industry and what type of records experts process? Having said that, there are four steps to record authentication solutions which are below:
The first stage in varying records is gathering the required data. There are multiple approaches to achieving the objective. One approach is to ask the customer to collect and submit various photos.
After submitting records, the system pre-processes and examines the information to guarantee that data is up to the requirements. Is the given picture of required documents and not something else? How about clarity and high-quality photos? Has the picture provided all the necessary information?
Document photos that are not up to the mark get rejected by the system and only the records that fulfil given standards move on in the process to produce high-quality results.
When a customer provides records for validation, it happens by submitting photos of given documents. For processing information, it is important to extract data effectively. For this purpose, there are various ways such as using Optical Character Recognition (OCR) and pattern recognition.
Once online verification of documents captures all the required information, the system compares it to pre-existing data. For instance, if a client provides utility bills as Proof of Address (POA), the system will compare the new information with pre-existing data. This is important to ensure the authenticity of records.
In case there are inconsistencies in the information, this should get highlighted as a red flag. This can identify input errors from customers and can also be indicative of a fraud case.
This is the third stage and the system validates given records to determine their authenticity. This refers to multiple validation checks which also depend upon the type of records.
The final stage in document authentication is about producing high-quality results; the customer receives the final output and proof also gets stored in the company’s back office.
Online verification of documents is an efficient way of validating customers’ identities. With this perspective, corporations must opt for an innovative approach and streamline the onboarding process.
There is no one size fits all approach to ID validation for modern-day enterprises. For this reason, collaborating with a third-party vendor can provide a customisable solution which ensures strategic advantage. This way, corporations can strengthen customer relationships and boost yearly profit rates. Hence, the importance of online verification of documents is obvious.