Regulated industries such as financial services, healthcare, and insurance face growing pressure to evolve their Know Your Customer (KYC) initiatives, resulting from both compliance requirements and ever-increasing risks of fraud and impersonation in customer enrollment. The success of these programs depends on effective identity verification, or validation that the person engaging the service is the individual that he or she claims to be. Because identity verification commonly relies on the authentication of government-issued IDs, improvements in this process thus play a critical role in improving the effectiveness of KYC programs.
However, at the same time, the traditional, manual approaches to document authentication have become increasingly complicated by the expansion of online and electronic commerce. Often, the documents provided in these circumstances are not the original, issued documents, but photographs, photocopies, or scans, which can distort information and images included in the document as well as frustrate physical authentication features. This can result in extra time and risk involved in identity verification, while the alternative – in-person inspection of original issued documents – frustrates the flexibility and speed objectives offered by online enrollment.
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