Businesses are taking a step forward toward building customer trust while attracting a global audience. Users not very familiar with the advanced technologies companies are bringing to the table are less likely to vest their confidence. Moreover, a lack of efficient customer identification can drive regulatory scrutiny. As businesses are subject to Know Your Customer (KYC) laws, ensuring accurate verification is a liability for them. OCR for businesses plays a vital role in it.
Businesses’ exposure to fraud risks is increasing. Despite identity checks, activity monitoring, and other countermeasure, criminals still somehow escape them. To limit identity theft, companies require robust online OCR solutions. These AI-powered IDV tools provide precise data extraction from documents that serve as a major source of identity proof. This article covers how OCR for business streamlines KYC processes.
OCR Document Verification – Validating Supporting Evidence for Proof of Identity
Documents not only validate customers’ claims and provide accurate identification but also boost users’ retention. They further provide infights into clients’ persona, background, transactions, and monitoring of their activities. Analyzing proof of address helps businesses tailor their services to attract customers from a specific region. Similarly, OCR document verification tools help precisely extract information from various formats and documents of clients opting for remote onboarding.
Technologies such as OCR for businesses are streamlining remote onboarding while limiting the hassle for both companies and clients. With solutions like automated extraction, firms can accelerate their user registration process. In all these transformations, businesses need to stay in line with KYC regulations that mandate validating specific documents. However, in the case of manual verification, the process not only become complicated and time-consuming but also drive inefficiency due to human errors.
The lack of OCR for businesses solutions leads to inefficient standardization of documents being uploaded from across the globe. Reasons adding to failure in accurate customer verification involve processes that are specialized to extract data from defined templates, languages, and document types. This requires businesses to bring in AI-powered data extraction software which is capable of analyzing information in majority of formats.
OCR Technology – Propelling Businesses Away from Non-Compliance Risks
OCR for businesses streamlines the scanning of customers’ identity details and extracts required data. Being an optimal part of document verification solutions, this technology drives more convenience and accuracy for companies. By using AI algorithms and built-in template matching techniques OCR for businesses detects formats coming from clients belonging to different countries.
The OCR checks convert images into machine-readable codes to help document verification systems analyze information more quickly. These tools can also transfigure text into their respective languages for accurate validation across various regions. OCR for businesses extracts data from ID cards, passports, residence permits, driving licenses, and utility bills.
Information that the OCR for businesses extract may vary as per legal requirements within the jurisdiction and type of services a company is offering. Most commonly, the details include the name of customers, nationality, date of birth, gender, SSID numbers, and issue/expiry dates.
Online OCR Scanners – Leveraging Result-Driving Benefits for Businesses
AI-powered OCR scanners extract information from Machine-Readable Zones (MRZs) that include characters, spacing, and numbers. These codes are present at the base of identity documents such as passports and ID cards. MRZs provide instant insights into customers’ Personally Identifiable Information (PII). OCR for businesses provides accurate extraction of data from these codes while limiting the need for human interpretations. By employing AI-powered techniques, this technology cuts down operation costs and extensive involvement of labour while driving more efficacy.
OCR for businesses provides sure ways to ensure KYC compliance while tailoring their services as per customers’ demands. In this digitally evolved era, clients are more focused on hassle-free and secure onboarding. Otherwise, companies can face backlashed in retention while losing their reputation. From improving customer experience to staying in line with the regulatory standards, the best OCR software further provides the following benefits:
Better Management of Data
Along with collecting and processing data of clients, companies also undergo other challenges such as storing as well as safeguarding the information. OCR for businesses provides complete control to firms by extracting and transfiguring details into searchable formats such as .rtf, .txt, .doc, or pdf. While further eliminating the need for carrying paper documents, this technology provides better management of records.
Speed Optimization and Cost-Effective
Online OCR technology solutions overcome the businesses’ drop-off rate while helping them retain a huge user base. They reduce the burden on companies by providing automated data extraction. Similarly, OCR for business solutions paces up the customer onboarding process while enabling companies to save additional operational costs.
Before moving to transformation, businesses need to ensure that they have efficient fraud prevention tools in place. Therefore, companies should integrate OCR data extraction while providing customers with ease of uploading documents through either scanning with a mobile camera or presenting them in front of webcams during a live call. Hence, OCR for businesses adds to convenient customer onboarding and easy data management while boosting the conversion rate.