Online Document Verification Services: A ‘Must-Have’ for Every Financial Institutions

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As an organization, it is critical to guarantee that malicious actors do not get accessibility to the data and services offered by the company.  However, organizations do not want to turn away real buyers. Customers will get tired and abandon the onboarding procedure if it is time-consuming or complicated.

Organizations must create the appropriate balance. The clients expect comfort and quickness. And the data protection and stability your business need. So, how can organizations safeguard themselves and their clients?

Document Verification Services

To validate the identification, a person must go through an ID document verification procedure. ID document verification is a method of determining if a user’s ID document, such as an ID card, passport, or driver’s license, is legitimate and original. This aids in distinguishing between the genuine and the counterfeit.

How Company Verify Documents?

Verification Customer

A customer is an individual who wants to authenticate themselves over the internet in order to utilize the company’s services. He will disclose his identification claims in this regard. For validation, the customer submits the confidential documents to the company

Verification Agent

A verification agent is a person who analyzes customer resource data to validate the client’s identification claims. This is done by a third-party validator. Once the person’s documents clear the validation phase, the agent estimates the likelihood of imitation or document fraud. After this, the customer receives access to the system.

Third-Party Verifier

A third-party verifier is a system that checks user documents.  It might be a government-issued ID card or public records in the government’s registry.

The Digital document verification process includes assistance from Artificial Intelligence (AI) and Machine Learning (ML). The customer gives documents online, and the profile validator is the platform’s AI that will validate the claimed identity documents online using a third-party validator, which is a digital database that compares the customer’s identity to the one present in the database.

Qualities of a Successful Document Verification System

Companies must adopt a risk-based strategy for identity document verification. When employing this strategy, the measures a company utilizes must be appropriate for the amount of risk. The risk level is expected to alter as technology, legislation, and consumer behavior evolve. To establish a risk-based approach for document verification, it is necessary to consider the following several factors.


A risk-based strategy necessitates a flexible identity verification solution that is nimble and can adapt to changing business demands.


It must be trustworthy enough to analyze prior assaults or past breaches in order to assure future security via ID verification.

Customer Satisfaction

Clients who experience too much difficulty throughout the onboarding procedure are more likely to abandon their accounts. Providing a simple ID document verification procedure improves the customer experience.


Take the costs into account that is associated with ensuring user safety via the internet. Select an ID document authentication software that is cost-effective and adjustable based on the company’s requirements.

An Extensive Solution

To assess and evaluate the broad coverage of the method that companies are employing in order to validate. For instance, many firms are worldwide, yet having a local network would not work.

Types of Document Verification System

There are several techniques for verifying identification papers online, each of which works differently.

Two-Factor Authentication

This is a common way of the verification process. Therefore, the user must enter their login credentials. Furthermore, it requests another step for confirmation and includes something that may only relate to the user. As a result, hackers will find it difficult to collect customer data.

Knowledge-Based Approach

KBA stands for knowledge-based authentication. It is often employed by financial firms or online businesses to which you wish to get access. This authentication method necessitates the customer to provide personal details to demonstrate ownership of the identity. There are two kinds of KBA: static KBA and dynamic KBA.

Biometric Verification

Every individual possesses characteristics that cannot be transferred to another. Fingerprints, retina scans, face features, and speech patterns are examples of these distinguishing qualities. The validation of these unique qualities documented against a user’s identification is known as biometric verification.

It should be emphasized that these characteristics can only be validated if they have already been collected or documented by a trustworthy authority. As a result, biometrics cannot be asserted as an initial form of identification verification. They are instead utilized as a second phase in the ID verification process for an existing client to confirm additional identification credentials.

Authentication by a Credit Bureau

A credit bureau verifies a customer’s identification on their behalf in this kind of verification. This is a reliable method of verifying customer ID, but it may take longer.

Authentication of Databases

Database validation is the procedure of verifying that the user attempting to log in to the profile is the genuine account holder. It often contains information obtained from social media accounts, like Facebook or Google.

The Bottomline

Document verification service are a reliable method to identify customers and fulfill the regulatory obligations of a company including anti-money laundering and identity fraud.

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