Identity scanning technology is now playing a huge role in day-to-day banking processes. Learn more on our blog.
ID checks have been commonplace in sensitive industries for years, with people being asked for ID when buying tobacco, alcohol, dangerous goods like kitchen knives and even some pharmaceuticals. This led to the expectation of producing ID to prove your age and identity. The banking sector is another important sector that depends on effective identity checks.
The banking industry is expected to pay the utmost attention to identity verification, and with good reason. The prevalence of bad actors who intend to use the financial system for questionable purposes is high, and new technologies, such as ID scanners, are helping the industry deal with this more effectively. In this article, we will look at the role ID scanners play in the banking world.
But first, what exactly are ID scanners?
ID scanners generally look like your average scanner. A rectangular shape with a lid fixed by hinges that opens or closes, or with a chute where identity documents are deposited and analyzed. But unlike a typical scanner, which simply scans and photographs the document, an ID scanner actually reads and stores the document's information.
ID cards, driving licenses, passports or business cards can be easily scanned, stored and verified. These scanners can read printed information, barcodes, magnetic stripes, and QR codes, and then store that information in a database. Space companies—like Adaptive Recognition—are leading the way with a diverse range of products, research, and technology development in the field. (1)
What role do ID scanners play in banking?
Such technology is hugely beneficial to the capricious nature of identity verification in the financial industry. Below are some of the most important functions of ID scanners.
- Instantly detect people on blacklists :It has been in practice for years in entertainment districts to prevent prohibited patrons from entering establishments. In banking, ID scanners play a similar role. (2) By quickly and easily compiling their identity data, scanners can instantly verify it against stored records. This check will then notify you of any blacklists or restrictions a person is under and even provide detailed information about their credit history.
- Identifying fake IDs :Even with internet banking being on a continuing upward trend, trust remains a major issue. With hacks and breaches being all too common, user experience alone is not enough to allay consumer fears, and active trust-building activities are needed to diminish consumers' perceived risks and fears about banking services. in line. (3) This is where ID scanners come in, instantly recognizing imperfections in fake IDs to stop scammers in their tracks. With this knowledge in mind, consumers can sleep better at night knowing that the potential for identity theft is inhibited with the introduction of ID scanners in banking.
- They are accumulating data on demographics “Data is the new oil,” Clive Humby said in 2006 after setting up a supermarket Clubcard scheme and earning millions of pounds in the process. How exactly? In a nutshell, storing and managing big data is a shortcut to your target market. (4) Identity scanners collect information such as name, address, gender and date of birth and then store and compile them in a database. These statistics can then be used to best meet customer needs, tailoring promotions to the most popular demographics.
- Helping better office workflow :As a bank employee, the previous method of recording a person's details was to take their document and manually enter the data. In a customer-facing role, it's obviously quite a challenge to perform both data entry and simultaneously provide the support your customer deserves. An ID scanner completes this entire job, allowing you to give your customers your full attention. This means you can reduce your work to a minimum and work with more clients, increasing your productivity and profitability. The system is so efficient, even Uber is streamlining their ID checks for alcohol deliveries with the same technology.
- Decrease the prevalence of crime and fraud :Having an effective and efficient ID scanning system in place is excellent in terms of compliance and direct approach to crime and fraud. This happens in two ways. These systems allow the banker or customer relationship manager to identify malicious actors on the spot and effectively stop them in their tracks. Additionally, knowing that ID scanning technology is in use at your branch acts as a deterrent against illegal and criminal actors using your services.
In conclusion
ID scanners have a role to play in many industries, and the banking sector benefits enormously. The ability to instantly save key customer document data helps banks identify blacklists, prevent the use of forged documents, collect data, improve workflow and deter fraudsters. criminal behavior.
