In the finance industry, processing documents in a remote setting is like a double-edged sword that empowers firms to accept customer applications faster, improving client services. Financial sectors and studies mainly face identity theft issues and in 2020, $43 billion of losses were faced by firms. Ease in submitting documents helps reduce employees’ hectic work and lets them focus on more important tasks. Firms just have to shift their concern from traditional work to automated work, which helps make work more beneficial and faster. They can implement a document verification service, which is an advanced strategy for doing work.
This blog will automatically cover all aspects of document verification and give in depth view.
A Quick Summary of Document Verification Service
Document verification service is a strategic method for verifying documents and confirming that the user is the same who they claim to be. This process is beneficial in many ways, such as it reduces the bulk of work for employers. A document verification service provider is a third party that has millions of users’ information in its database, which is taken from different companies. Information includes authenticating passports, utility bills, financial statements, and certificates. The document verification system compares this information with currently available data and confirms that the user is legitimate. This process just takes a few minutes to confirm users.
The primary goal of document verification is to provide an authentic report that the document is legal and authentic.
Importance of Document Verification Service
Document checkers verify documents and reduce the chances of being a fraud as imposters are continuously looking for ways to deceive others to fulfill their illegal means. Banks, financial institutions, loan agencies, and credit card firms are primary targets of scammers. They usually take real people’s identities and scam these firms, putting them in severe financial condition.
If scammers get approved for credit cards or loans, they will grab all the money and disappear from the scene, resulting in bankruptcy.
After COVID-19, the chances of fraud increased in government agencies, such as false employment claims.
Specific Types of Financial Information Lenders
The following are the common types of lenders:
- Match the account owner’s name with the holder.
- Ensure that the bank account belongs to the right user and exists.
- Account balance and closed date to understand if the loan has been paid off and its tenure.
- Time tenure to comprehend if the debtor made payment after or on time.
- Determine account types, whether they are business, personal, or savings accounts, according to your criteria.
- Closed and open status to understand if the debtor has several open accounts.
- Find information to understand if the debtor has money as a saving or for deposit.
How can the Financial Sector Take Benefit from Document Verification Services?
The primary goal of financial institutions is to mitigate risk and minimize financial losses. By implementing KYC document verification services, companies can:
- Prevent fraud by authenticating identities and enabling them to verify its several types. It involves not approving loans that are used for illegal purposes and restricting people who are providing wrong information.
- Document verification services have to ensure that applicants are above 18 to prevent legal consequences.
- Document checkers must prevent identity theft, and help people avoid becoming a target of money laundering and extreme conditions that lead to bankruptcy.
- Verification of documents secures firms from scammers and restricts unauthorized access to confidential and sensitive information.
- Document verification provides instant services to make clients satisfied and happy.
- Document verification systems limit human mistakes and transform every process according to modern technology.
Essential Benefits of Using Document Verification Service
- Verification of documents is essential in approving credit and debit cards to genuine customers as it helps in reducing traditional procedures.
- The underwriting process and account opening is a simple process and applicants can use their mobile phones to upload images.
- Human error is minimized so it increases accuracy.
- Customer faster onboarding process.
- Satisfied customers and improved user experience.
- Higher scalability.
In the finance industry, the loan lender confirms borrower documents before approving their application, including confirming if the records are authentic by asking for specific documents. They also confirm if the documents are complete and not missing. Verification of documents also ensures that scammers are not approved for loans.
Final Verdict
Document verification service is a faster processing system that helps firms process the bulk of user documents in seconds or minutes. It helps firms reduce their frustration level as everything is done through a cloud-based system. By implementing advanced technologies, firms can reduce their tasks and concentrate on more specific tasks which leads to higher productivity.
