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AI for making the identity verification process fast and effective

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Online document verification is essential to avoid frauds like identity theft, credit card, and chargebacks. Many online businesses deal with these frauds daily.

According to a daily mail UK, fraudsters are stealing £ 1 million daily. People and governments across the world seem to abuse banks for this failure but on the other hand, banks believe that this is all due to negligence of the customers, who use their credit card for online payments and get scammed by the fraudsters.

Neither banks, not customers have any idea about who is responsible and how to stop this. There are stringent regulations that require a thorough identity verification and age verification when onboarding customers to put a stop to online frauds but banks usually fail to adopt an effective verification system. Especially, banks that are providing online services fall victim to online fraud more often.  

There is a need for a more robust identification system that will help financial institutes to reduce frauds like identity theft, credit card, and chargeback fraud. FinTech is a growing industry that is helping financial institutes through technology in many different ways. One of the most prominent addition is the use of Artificial Intelligence for making identity verification process fast and effective.

Use-cases of AI in document verification

Artificial Intelligence is the most talked technology nowadays. While it is changing the industries all around the world through automation and machine learning, the banking sector is also making many processes automated and optimized using AI. Here are some use cases of AI in document verification online.

Workflow automation

AI has automated the toughest task in the document verification process. It is one of the biggest revolutions that AI is delivering. From automating the process of gathering information to easing the analyzation process, AI has reduced the human interaction and makes the process time-efficient and cost-effective. 

For instance, the previously manual process of entering customer detail is now replaced with OCR extraction. The user just uploads the picture of a document carrying information and it is easily extracted using OCR.

Link analysis

The most enthusiastic feature of AI is to connect various transactions leading to Ultimate Beneficial Ownership (UBO).

AI has this capability to extract meaningful information from a vast array of data even with unstructured data. It is a huge assist to the compliance team who is trying to connect links between different transactions happening around the world. This increases the advantages of the automated document authentication process.

Maintaining compliance and regulatory changes

Natural Language Processing (NLP), a subfield of AI has this ability to read and comprehend the meanings and important details from the text. Since the regulatory environment always keeps changing, NLP can help the business to stay up to date with the KYC compliances and restrict bad actors. 

AI has proven to be instrumental in fighting fraud by providing an effective document verification mechanism in the finance sector and remaining in compliance with KYC regulations. With AI, businesses can reduce human errors, remain in compliance with regulations, eliminate the risks of money laundering and terror financing, and fight fraud.


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