Digital Customer Onboarding Using OCR and AI for ID Cards

Digital Customer Onboarding Using OCR and AI for ID Cards

More bottlenecks in customer onboarding processes often mean less revenue for businesses. Removing these bottlenecks by accelerating the onboarding process is essential for improving the customer journey and bottom line.

The three primary problems across various industries in customer onboarding are long processing times, costs, and compliance. It is no longer efficient or scalable to operate on traditional models that are more human-dependent.

The key to removing the problems altogether, is implementing an automated solution. This captures data from identity documents and completes identity verification with close to non-human intervention.

This blog will reveal how AI-based ID Card OCR helps tackle these issues.

Taking over traditional customer onboarding

Currently, OCR and AI are transforming the legacy customer onboarding process. This process has always been riddled with in-person verification, long turn-around time, duplicate document requests, paper-based processes, data entry errors, and insufficient data.

One of the areas in which AI-powered Optical Character Recognition is particularly being leveraged, is automating ID card scanning. Identity verification is an integral part of the customer onboarding process. Therefore, it is critical to efficiently capture, extract, and verify data from the ID cards.

With an automated solution, there will be no need for manual reading, document verification or data entry. Consequently, it requires less human effort and decreases turnaround times.

The intelligent solution extracts, verifies and captures data within a few seconds. After that, the data is transformed into a valuable form that can be passed along for further processing. The destination of choice can be a database, system or software application, to name a few.

Which fields can be extracted from ID cards?

In general, all fields can be extracted from the ID cards. However, we have listed the most common fields below:

  • ID card holder’s full name
  • Gender
  • Nationality
  • Date of Birth
  • Social Security Number (SSN)
  • Document number
  • Issue date
  • Expiry date
  • Holder’s Signature
  • Photo
  • Card Access Number (CAN)

What are the benefits of ID card OCR?

Using an ID card OCR solution leads to a couple of benefits:

  • Cost reduction: because of OCR, less money has to be spent on processing.
  • Prevention of fraud: the OCR engine automatically recognizes errors, duplicates and fraud.
  • Speed improvement: onboarding and processing of ID cards within a matter of seconds.
  • Error reduction: high quality data extraction leads to error prevention.

Use cases for automated ID card scanning

Automated ID card scanning with AI-powered OCR solutions is used across many industries to improve the bottom line.

The most common use cases that we come across are the ones below:

  • Digital onboarding with ID card and signature scanning
  • Identity verification through photo and selfie biometric matching

Digital onboarding with ID card and signature scanning

To illustrate one of the use cases, let’s look at the example of a car rental service.

New customers often don’t want to go through the hassle of getting inside a car rental office to fill in the forms and sign the contracts. As these rental companies do not want to lose these customers, they want to provide a fast and convenient vehicle renting process.

With an AI-based OCR solution, the onboarding process can be made simple via mobile or web application with the following steps:

  1. Enable customers to upload or take a photo of an ID card.
  2. Extract the data from the ID card.
  3. Enable customers to sign contracts digitally.
  4. Verify the digital signature with the one on the ID card.

Once these steps are clear, customers can pick up the vehicle without physical presence at the rental office beforehand. Faster turnaround times equals more revenue.

Identity verification through photo and selfie biometric matching

Organizations required to perform KYC checks, such as banks, must verify their client’s identity before providing a bank account or a loan.

This process strictly exists to monitor risks and prevent all kinds of criminal and illegal activities.

With large volumes of applications and forms that banks need to process, an automated solution can certainly reduce bottlenecks in the back office.

The intelligent ID card scanning enables banks to enhance the customer onboarding experience while keeping fraud at bay.

The identity verification process can be described as follows:

  1. Uploading an ID document via scan, image, or PDF.
  2. Data extraction from the ID document.
  3. Identity verification through photo and selfie biometric matching.

By automating ID card scanning, extraction, and verification, customers can enjoy a shorter cycle of an onboarding process. Shorter waiting time equals happy customers.

Streamlined onboarding process with automated ID card scanning

In conclusion, companies that integrate OCR and AI into their workflow are prepared for the future. They are able to automate ID card scanning, extraction and verification to reduce bottlenecks.

As a result of streamlining onboarding processes, turn-around times, costs, the amount of paper-based data and human errors can all be decreased.


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