How Do KYC Documents Proof The Identity Of A Customer?

How Do KYC Documents Proof The Identity Of A Customer?
KYC Documents

KYC, In this world of digital interaction, the number of identity theft and scams is increasing each day. According to surveys, one in three adults in the US is a victim of identity fraud. With the increase in digital platforms, the attackers find it easier to take over customers’ identities online. They use different computerized tools for exploiting user credentials and imposing identity theft attacks on different customers. Identity fraud also costs a lot to the economy of the region, as per research the number of data lost globally due to identity theft is touching the $5 trillion mark annually.

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Authorities are taking measures on preventing this issue, they have made the KYC document verification process a must for every business for securing interactions.

Advantages Of Verifying Identity With Documents

The documents of the user contain proof of their identity. These legal papers are issued by authentic national offices that mark the individual as credible and real. Most organizations rely totally on document proofs to ensure the genuineness of the client. Another advantage of document verification is that it provides all the data of the customer including their previous interactions, background workings, and historical data. With the client’s information, organizations can perform a complete check-up on the user in case of any fraudulent activity.

Traditional Document Verification

Most customers have experienced the ID document verification process in different business and banking sectors. Well, financial institutions have been doing it for decades. They have adopted this process for every customer interaction with the business network. The physical way of document verification is presenting the identity proof to the business in hard copies. They verify the integrity of the user by processing the paperwork manually. The process of document verification is done by the business at the instance of customer onboarding, for example, the opening of a new bank account.

E-KYC Document Verification

The world has now developed new ways of working and business trading. The period after the pandemic is the era of remote interactions. The operation of verifying identity documents is processed remotely to authenticate the customer. Digital identification is called e-KYC document verification, it requires the user to upload their identity documentation to the online platform which in turn verifies them.

How To Verify KYC Documents Online?

As digital platforms are getting high in numbers, the process of online document verification is now being adopted by most businesses. With over billions of people on the internet, the method of e-KYC verification is effective in verifying the identities of the customers.

Acquisition Of Documents

The documents of the customers are acquired by the documentation verification service provider via digital channels. Mostly the clients use document submission platforms where they are prompted to upload the images of their legal certificates.

Digital Validation Check

The documents uploaded by the customer undergo validation checks on the digital verification system. They are analyzed for any sort of manipulation. Attackers use multiple online image processing tools to illegally forge document images before uploading them. The new AI-based solution checks violation attempts by validating the images through multiple photo comparisons with the built-in document templates.

Online Document Verification

After validating the input of the client, the system further processes the documents. The online processing of the data within the certificates uploaded is done through optical character recognition technology. With OCR the data within the documents is detected and extracted for verification of customer identity. Information like the name of the client, date of birth, nationality, and other identity data is gathered. The identified data is then used to verify the user through legal authorities and organizations.

How Is E-KYC Verification Better Than Traditional Method?

The traditional method of document verification is not that effective in the modern era. The old way of processing a client’s paperwork is tedious and consumes a lot of time. Traditional document verification can take up to weeks as it involves the physical identification of a client’s certificates. It also requires manual checking of the documents which involves multiple organizational employees. On the other hand, the process of digital verification is fast and provides results in real-time. It is also backed up by AI systems that enable the automation of data extraction and verification.


The document verification method is a keen part of KYC compliance. It provides all the required information for the customer. The documents are analyzed to verify the identity of the customer at the time of the onboarding phase. The KYC documents include identity cards, passports, and other certificates that include identity proof. The use of digital document verification systems has increased the rate of processing and verifying documents. It uses AI systems that automate the operation and provide output in no time.

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