Manual identity verification and inefficient paperwork can no longer cut it for businesses due to the changing customer demands and compliance requirements. Document scanning technology stands out as a viable and cost-effective solution for simplifying work processes, keeping up with regulatory compliance, and enhancing customer experience. This post explores the top six reasons to integrate document scanning technology into your verification workflow.
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Automation of Data Extraction
Thanks to document scanning technology, you can automatically extract data from an array of identity documents, including ID cards, driver’s licenses, and passports. This technology relies on optical character recognition (OCR) to help businesses extract relevant information, such as name, date of birth., and address, accurately and swiftly.
For instance, if you run a fintech startup, you can integrate a driving license scanner into its onboarding process. When users upload driving licenses, the system extracts relevant details automatically to populate the user profile, which lowers manual data entry errors.
Ability to Adapt to Global Document Formats
Small businesses and startups usually run in diverse markets. The ability of document scanning technology to process a broad range of document formats, such as JPEGs and PDFs as well as accommodate regional differences, like ID cards featuring non-Latin scripts is mindblowing.
For instance, if you manage a travel booking platform, you might have to accept and process identity documents from global users. By integrating document scanning technology into your workflows, you empower your system to recognize diverse languages and formats to accommodate a global user base.
Improved Fraud Detection
Your business can easily detect tampered or fraudulent documents through real-time document scanning. The technology’s advanced algorithms critically analyze document features, such as fonts, holograms, and watermarks, while comparing them against known original templates.
For example, if you operate an eCommerce platform, you can quickly verify seller identities by simply scanning their business licenses. The system will automatically highlight inconsistencies, such as mismatched fonts or altered dates and flag the entire document for manual review.
Compliance With AML and KYC Regulations
Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations require your business to perform thorough identity verification. You can meet such requirements by integrating document scanning technology into your verification workflows to validate document authenticity and capture high-quality images.
A good example of this is a cryptocurrency exchange platform that scans passports to verify user identities. These compliance checks help your business to align with all the regulatory guidelines.
Enhanced Security and Privacy
Document scanning technology not only boosts security but also safeguards user privacy. It emphasizes secure storage, data anonymization, and encryption. Some security features that you can take advantage of by using this technology include
- Multi-user mode for separating data and information between users
- Encryption of image data in memory storage
- Encryption of data files stored on local disk
- Configurable authorizations
- Authentication support
This means your healthtech startup can effortlessly scan medical insurance cards as the system automatically encrypts any sensitive data and grants access to authorized personnel only.
Optimization of User Experience
By incorporating document scanning technology into your onboarding workflow, you allow users to upload documents quickly through web interfaces and mobile apps, minimizing the need for manual submissions and physical visits.
For instance, your ride-sharing business can permit potential drivers to submit licenses through an app. This will enable the scanning technology to facilitate quick approvals, allowing the drivers to be absorbed in and start earning sooner.
There is a lot you can achieve by incorporating document scanning technology into your verification and business workflow. These include effective identity verification, fraud prevention, and regulatory compliance.