Document Check

The key difference between physical document verification and digital document verification is the method used. Physical checks examine a document’s tangible attributes, such as the MRZ zone, while digital checks utilize automation to verify the document’s authenticity online.

There are a few types of document checks that businesses choose to implement. For example:

• Automated software. Uses algorithms and machine learning to analyze documents and compare them with existing databases.
• Manual checks. Reviewing documents to ensure they’re valid and match the information provided by the individual.
• Third-party providers. Often offer more advanced ID verification solutions, including facial recognition, liveness detection, biometrics, and other innovations.

Banks often use document checks along with other methods to improve their identity verification processes and onboard new customers. For example, they might use facial recognition technology to confirm a new client’s identity by comparing a live video of them with the photo on their ID card. Alternatively, customers can visit a physical branch to have their documents inspected by staff directly.

Financial institutions and similar service providers use document checks, among other obliged companies, for example:

• Fintech companies
• Investment firms
• Insurance companies
• Credit unions
• Real-estate firms
• Crypto exchanges
• Banks

Using a document check helps them fulfill regulatory obligations, reduce fraud risks, establish trust, and streamline customer onboarding processes.