Why is it important to verify your customer while onboarding?

Have you ever felt annoyed that you are required to add personal information while making a bank account or purchasing an item online? You may think that the information asked is irrelevant, useless, and time-consuming. But there is a reason for that.


Businesses are at great risk of becoming a victim of financial scams and fraud. Fraudsters imposing to be a customer can do much harm to a business. Organizations are required to verify each customer entering their platform to prevent any harm to their business. 


Know Your Customer


In an era where technology has taken over the world, people are moving online to catch up. People’s presence on the internet has opened a great opportunity for businesses to promote and sell their products online. But the opportunity comes with a great risk of becoming a victim of fraud.


Know Your Customer verification is a process that can help verify the identity of an individual. The process has been widely used by organizations to prevent any crime. Businesses like financial institutes and banks which are at great risk of any financial scam are required to perform KYC verification before onboarding an end customer.


KYC verification has played a vital role in preventing many crimes. When the human eyes fail to notice a difference, AI technology is smart enough to save us from this scam. KYC uses AI to verify the identity of a customer. It consists of document verification, addresses verification, and face verification which allows them to understand and verify the information provided by the customer. 


Customer Information


In order to verify your customer, personal information is required. This personal information includes name, date of birth, license, credit/debit card number, social security number, etc. Customers are asked to provide this information to the companies.


Customers are asked to upload a scanned copy of their id card, driving license, passport, etc for verification purposes. The information collected is extracted through OCR technology. The technology helps in converting the scanned information into text format. 


Document Verification


Document verification uses an artificial intelligence algorithm to identify the authenticity of the documents. It scanned and looked into the document provided by the customers. The documents required to depend on the nature of the business. The most common documents asked are ID cards, driving licenses, and debit/credit cards.


Many organizations like financial institutions, private businesses, and public organizations are required to identify individuals and keep their records. Businesses need to take every precaution instead of being another number in the statistics. 

After collecting the documents from the customers, AI runs them through the system and verifies if it is authentic. It takes every factor into account while verifying things like color, font, information. It gathers all the information required and runs it through the available database to confirm its originality.


Address Verification


Address verification is required by many organizations to verify the presence of a customer. This verification is also done by artificial intelligence to make sure that the customer is authentic and not a fraud.


Face Verification


Face verification is a strong tool to prevent any kind of fraud and scam and better know your customer. Face verification or facial verification is also an artificial intelligence algorithm that identifies the face of an individual. 


At first, the system is required to capture the image of an individual and save it in a database. The system captures and identifies the  80 nodal points like the distance between eyes and distance between nose and ears etc. When the system is presented with the image of a person, it identifies the face by matching the face through the information stored in the database. If the database consists of that information it will present its existence. If it does not have that face stored then it will alarm you for a breach.




The Internet has provided us with vast benefits but everything has some risks associated with it. Digitalization has given us a new opportunity to expand our business but it has also given the opportunity to fraudsters to steal from us. But it is also technology that can protect us from this. KYC technology is efficient and effective which can provide accurate results in just 30 to 60 seconds. Make your business safe by identifying customers before onboarding him/them.

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