Business

Digital Document Verification Process and its Working

Prior to getting closer to the digital document verification process, have a look on sharing a review of the latest industries that are spending billions for verdicted to reach 18 billion in 2027. 

Identity verification can be conducted efficiently without document identification of the entity.  Collecting the official documents is insufficient; companies must confirm whether these documents are authentic or fake. Authenticity and legitimacy are required components in KYC onboarding. For businesses, it is essential to know to whom they are providing their services. It is obligated by law not to provide services to illicit entities involved in criminal activities like money laundering and terrorism financing. Let’s explore the article to determine how to efficiently perform the document verification process.

What is Digital Document Verification?

Document verification is a process of verifying official documents such as bank statements, individual details, and financial background to determine whether they are legal or authentic. This process is essential for businesses that are working in financial institutions such as banks, real estate, and crypto to determine who the clients are and to whom they are providing services. As the world is becoming online, digital document verification utilizes a series of protocols to find illicit entities and protect the firm from potential danger and fraud.

Significance of Document Verification Process for Business

The development of the document verification process is increased with the enhancement of customers interacting online. The automated process helps companies to increase the market globally without asking customers to physically submit the documents. It allows clients to upload their documents anywhere, anytime, to start the digital document verification process, which will be user-friendly and convenient.

The time and effort required for manual verification will be reduced, along with human errors. Companies can make business relationships with customers globally as the verification process can be implemented in any region anytime, anywhere. Organizations must allow customers to adhere to KYC (Know Your Customer) and AML (Anti-money Laundering) compliances. This provides businesses the satisfaction of working with authentic entities not involved in criminal activities like money laundering and terrorism financing. 

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How Does Digital Document Verification Work?

Digitally verification utilizes advanced technologies to determine the document’s legitimacy and authenticity. However, the digital document verification process depends on what sector they are operating. There are different types of documents, and the verification is different for every kind of legal paper. That’s why the digital verification process is divided into three sections.

  1. Collection of Document

This step is initial with collecting the necessary documents naturally. There are many ways to gather the individual’s details. It includes asking the clients to upload clear pictures of the papers. The business has to set some requirements, whether it is the actual picture of the individual or an animated one. Are the pictures of documents high quality? The process will not move to the next step if these requirements are unmet.

  1. Verification of Collected Documents

A Document Verification process is required to investigate whether the provided documents are accurate and relevant to their purpose. For this purpose, a variety of different verification checks is implemented. This involves:

If the document consists of several pages. Are all the pages of the document uploaded to the business portal? Are the uploaded pictures cropped or unclear?

The government-issued documents have all the security elements such as stamps, watermarks, signatures, or other visible factors depending upon the type of the documents. 

  1. Manual Verification of Documents

In any case, if any of the customer’s documents are indicated as suspected, the companies have two options: either to eliminate them or to conduct the manual verification process. In which the human deeply analyses the case. The manual verification process helps solve the false incidents that happen in the process. 

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Which Industries are Required to Conduct Digital Document Verification Process? 

Businesses working in the financial sector are highly required to implement the digital document verification process before providing services to their customers. Financial institution industries are:

  • Cryptocurrency
  • Real estate
  • Banks
  • Insures
  • Health care
  • Lenders

Wrapping Up

Digital document verification is verifying the authenticity and legitimacy of documents to determine the potential risks associated with the new customer. It is not legally obligated to provide services or consider a business relationship with the illicit entities. Businesses that are working with such types of individuals would face legal charges and penalties. Hence,  it is crucial for organizations to properly verify their identity with the provided documents and make an instant decision whether to work with them or not.

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