Does your company handle a large number of e-files, and are you looking to optimize this process? Automated voucher verification may be just the solution you need. Indeed, thanks to AI, this tedious task can be carried out efficiently, quickly and completely securely.

By automating this time-consuming procedure, you can significantly reduce the time needed to process each file, while improving the accuracy of your results. According to a study conducted by Forbes, automating the procedure can reduce the time needed to check documents by almost 90%.

What’s more, automating the verification of supporting documents makes it easier to comply with KYC (Know Your Customer) regulations. By delegating this procedure to a machine, you considerably reduce the risk of error and document fraud. This ensures that your company complies with anti-money laundering (AML) and compliance standards.

But how exactly does it work? Is it right for your industry?

What is automated verification of supporting documents?

What is a supporting document?

This is the set of documents proving the identity and information provided by a customer. These proofs can be diverse, such as passports, identity cards, invoices, bank statements, pay slips and so on. They are used in many sectors, including financial services, insurance, real estate and more.

Why automate the verification of supporting documents? Case studies: banking and real estate

Manual verification of these proofs can be tedious and time-consuming. What’s more, it can be a source of human error. Automating this process saves time and improves controls.

In the case of banks, verifying the identity of customers and their personal documents is a legal obligation known as KYC (Know Your Customer). Automating the verification of these proofs then simplifies the online customer journey. In the case of real estate, it simplifies the process of renting or buying a property. When the check is carried out online, customers can provide photocopies without having to visit a branch. Data is then processed automatically and checks are carried out quickly. It also ensures compliance, to reduce the risk of fraud.

Automated verification of supporting documents: Advantages and disadvantages

What are the advantages of automatic voucher checking?

Regulatory benefits

Automating the verification of documentary evidence ensures compliance with current regulations. This process ensures that the documents provided by customers are genuine and valid, and that they are who they claim to be. These controls are all the more important to comply with KYC standards as part of the fight against fraud and money laundering (LCB-FT).

Operational benefits

From an operational point of view, its digital industrialization simplifies and streamlines the customer identity verification process. It also drastically reduces the time needed to check documents, enabling more files to be processed in record time. What’s more, it reduces human error, further optimizing file processing.

Financial benefits

Last but not least, it offers significant savings for the company. In fact, it reduces the costs associated with manual verification of documentary evidence, particularly in terms of manpower. It also reduces the risk of customer disputes, which can have a positive impact on customer relations.

What are the main disadvantages of automatic verification of supporting documents?

Despite its many advantages, checking personal files automatically also has a few drawbacks that should be taken into account.

First of all, this solution is not suitable for all types of documents. Some require a more detailed analysis, which can only be performed by a human being. What’s more, some customers may feel uncomfortable entrusting their personal data to a remote machine, which can have a negative impact on their user experience.

Finally, it should be stressed that this process does not guarantee 100% document authenticity. Indeed, ill-intentioned people such as modern hackers can use state-of-the-art technological tools to thwart the security of computer systems. Some files are forged in highly sophisticated ways, making them difficult for a machine to detect.

Which documents can be checked automatically?

Netheos supporting documents

While this process can involve a wide variety of documentary evidence, the most frequently checked documents are those linked to the customer’s identity, such as national identity cards, passports, driving licenses or residence permits.

In addition to identity papers, companies can also automate the verification of documentary evidence relating to a customer’s financial situation, such as bank statements, pay slips or tax returns. The latter are particularly important for companies in the insurance or finance sectors, who need to ensure that their customers are solvent and capable of repaying their debts.

Finally, automatic checks can also be carried out on documents relating to the customer’s place of residence, such as water, gas or electricity bills, rent receipts or property deeds. These are used to verify the customer’s address and ensure that he or she is actually living at the location indicated.

How does automated verification of supporting documents work?

Document verification: steps and validation

The electronic process takes place in 4 stages, starting with the prospect’s uploading of supporting documents. The machine then takes over to check :

  1. Image quality: Photocopies, scans and screen captures must be legible, with all information clearly visible. This phase checks the image’s resolution, blur and noise levels, as well as its brightness and contrast.
  2. Type and validity of documents transmitted: They must comply with regulatory requirements and be valid. This 2nd phase ensures that the supporting documents submitted are those required to process the application (National Identity Card (NIC), passport, bank details, electricity bill, etc.).
  3. Consistency of paper data with the file: This step ensures that the information provided by the customer when submitting the form is consistent with the photocopies transmitted. So, for example, his surname, first name or date of birth must be similar.
  4. Authenticity of transmitted documents: For this last part, the use of technological tools makes it possible to check the validity of documentary evidence and ensure that it has not been falsified.

At the end of these 4 phases, if all the conditions have been validated, the e-file can be forwarded to the department responsible for processing the application, and the owner can sign the e-contract.

What tools are needed to automate the process? Focus on AI

Automated verification of receipts is made possible by the integration of advanced technologies such as Artificial Intelligence (AI). AI makes it possible to process large amounts of data in a short space of time and carry out accurate, reliable analyses.

To automate this process, you need a software solution that integrates image analysis and optical character recognition (OCR) algorithms. This service, offered in particular by Netheos, captures the information contained in the document and compares it with the information supplied by the customer.

The software solution must also be capable of handling data securely and confidentially in compliance with the web data protection regulation (GDPR). In addition, they must be accessible only to authorized members of the company.

Last but not least, the digital AI solution must be able to deliver a quality UX. Customers need to be able to submit documents online quickly and easily, and track the status of their files in real time.

Guide to the best automation solutions by industry in 2023

Banking and insurance

To comply with KYC (Know Your Customer) and LCB-FT (Lutte contre le Blanchiment de Capitaux et le Financement du Terrorisme) requirements, banks and insurance companies must verify their customers’ identity by requesting supporting documents when opening a bank account or subscribing to a service. The use of Artificial Intelligence (AI) then enables customers’ personal information to be processed quickly and securely. It can also detect anomalies in the documents supplied, such as falsifications.

Real estate sector

In the real estate sector, checking documentary evidence is essential to guarantee the creditworthiness of tenants. This tedious task can be automated using dedicated software. These allow you to quickly collect and check official documents such as pay slips or tax notices. What’s more, using algorithms, these software programs can assess the creditworthiness of tenants based on their financial situation. In this way, real estate agencies and landlords can save time while ensuring rigorous monitoring of rental files.

Comparison of the best ID verification solutions in 2023

ID verification is a crucial step in many areas of business. In 2023, many companies are offering solutions to automate this process. However, not all are equal in terms of efficiency and reliability. To choose the best solution, it’s important to consider a number of criteria, such as processing speed, success rate per verified document, data security and compatibility with legal requirements. Which companies will be the best performers in ID control in 2023?