A wave of digital revolution is currently sweeping the globe. Customers anticipate fewer impediments as a result, particularly when making purchases online. They also demand that improved security be used in conjunction with increased efficiency. To quickly deliver these services, banks need to shift from a manual workforce to an automated one, else they may face challenges in the future. The primary focus of the financial sector is automating the verification of documents. Gains from manual data entry, document auditing, and review may be offset by a portion of the entire cost of document verification. Fortunately, technological advancements have made it possible to create AI-based document-checking solutions that guarantee enhanced efficiency and security. The important banking industry use cases of such a system are covered in this article.
In 2021, the international market for digital banking was around $850 billion. By 2028, the market value will equal $1400 billion if it maintains its increasing trend at a CAGR of 8.7%. This data also indicate a change in customers’ behavior at the cultural level. Digital banking is becoming increasingly popular since it is convenient and simple to use. But as was already indicated, it can be difficult for conventional banks to meet the growing need for their manual labor. Automated document verification must be implemented as a fix to quicken the data collecting and entry process. Additionally, these systems offer an online interface that eliminates the requirement for clients to physically visit for document validation.
For financial institutions, identity theft is a severe problem that is only worsening. In 2019 alone, fraudsters stole $16.9 billion in identity theft and fraud cases. The main reason for most of these occurrences is an insufficient verification process. For example, manual verifications lead to data entry mistakes that cost a corporation millions of dollars. Additionally, human error frequently results in mistakes in manual operations. However, these situations may make it possible for fraudsters and Politically Exposed Persons (PEPs) to open bank accounts. This may suggest that banks have engaged in money laundering.
Since processing loan applications needs complete background checks through document verification, it has always been a difficult task for banks. The lack of accuracy and validation in conventional documentation is the issue, though. These problems led to a 105% increase in auto loan fraud in 2021. Since most people are struggling in the faltering economy, banks have seen a spike in loan applications since the Covid epidemic. Banks must create a way to safeguard themselves against fraud while granting such requests, nevertheless. In such a situation, banks can validate data with unmatched accuracy and efficiency thanks to automated document verification.
Data Integrity and Security
Data entry and storage are two things that all banks and their operations have in common. The banking sector frequently manages invoices, cheques, applications, and other documents. The data on the bank’s cloud servers are typically updated by manual labor. Traditional data entry, however, may lead to inconsistencies and problems with data integrity. For instance, errors like typos and duplicate data can cause banks serious accounting troubles. To maintain the highest level of accuracy in data collecting, automated verification of documents leverages AI-based optical character recognition. The online document validation method does the same, storing data on encrypted cloud servers to increase the security of private information.
For banks, onboarding new customers is one of many difficult procedures. Account termination is another crucial area that an automated document verification procedure can streamline. The crucial point to make in this situation is that account takeovers are not the only kind of identity theft. Scammers can also block bank accounts by using false paperwork. To harm rivals can be one of the primary causes for doing so. To stop such operations and safeguard clients, banks must invest in reliable solutions that use AI-based tools and features. The current document verification technique initially verifies the legitimacy and originality of the documents to accomplish this. Finally, it confirms that the account closure request was made by the original owner using improved verification.
Key Highlights of the Document Attestation Process
In the past, banks conducted verification of documents by hand with personnel. It could be a severe and error-prone project. Today, banks must reevaluate their digital transformation strategy to ensure accuracy and efficiency. The most practical answer for this is document verification using AI. These tools extract and gather data from physical documents using cutting-edge AI and machine learning characteristics. Additionally, the documents are subjected to originality checks that include locating security features and data anomalies. Only when the documents are confirmed to be legitimate are customers onboarded.