Automated passport data extraction can be implemented after KYC verification
An increasing number of businesses are required to capture data from identity documents, such as passports. This is done to verify a person’s identity before entering into a business relationship. Such a process is always part of the customer onboarding and tied up to the Know Your Customer (KYC) standards.
Although completing the KYC check helps protect businesses against fraud, corruption, money laundering, and terrorist financing, it adds another layer of tasks to the back office.
Therefore, manually processing and verifying passports can cause additional bottlenecks to organizations. With the growing demand for improved customer service, long turnaround times can push possible customers towards the competitors. Not to mention all the costs that come with the error-prone manual data entry tasks.
To gain a competitive edge, companies across various industries are looking for an automated solution, such as AI-powered Optical Character Recognition (OCR), to reduce bottlenecks.
In this article, we will dive into how data extraction works with passport OCR and the benefits that come with using it.
How does OCR extract data from passports?
The role of Optical Character Recognition is to capture text and fields from passports. It is often done through a web or mobile application. Once the OCR engine receives the image or a scan of a passport, it starts extracting data and turns it into machine-readable text.
The machine-readable text can take different formats (JSON, SVG, CSV) and be passed on for further processing. Hence, the copies and data from passports can be archived digitally and the information becomes searchable.
Artificial Intelligence enables the OCR engine to automate data extraction with greater accuracy and efficiency. With the capability to constantly adapt and learn, AI-powered OCR is not restricted to a certain passport template.
Data extraction on passports
Generally, all relevant data required to complete identity verification processes can be extracted from passports. Below we have listed the most common fields:
- Full Name
- Date of Birth
- Place of Birth
- Date of Issue
- Location of Issue
- Document Number
- Social Security Number (SSN)
- Picture from Passport
- Machine Readable Zone (MRZ)
The key benefits of automated passport data extraction
There are multiple benefits that come with using OCR to automate passport data extraction.
Let’s take a closer look at the following five:
- Faster turnaround time
- Cutting costs
- Improved data security
- Reduced (manual data entry) errors
Faster turnaround time
With OCR and AI taking the burden of automating passport scanning and data extraction, organizations can focus on onboarding more customers faster.
In fact, AI-powered OCR has the potential to reduce document processing times by 50-70% and verification by 85%.
As it only takes a few seconds to complete data extraction from passports, the additional bottlenecks that are formed in the back office can be dissolved.
One of the key benefits of automating passport data extraction is that it helps cut operational costs by reducing back office-related tasks.
With AI-based OCR, companies no longer need to dedicate employee time to complete tedious tasks. Tasks such as manual data entry, scanning, printing, and storing copies of passports can be eliminated with data extraction automation.
Therefore, the intelligent solution is able to trim costs associated with labor hours, printing, and storage costs.
Improved data security
Because passports contain personally identifiable information (PII), it is of utmost importance for organizations to have security measures in place to protect sensitive data.
Some organizations, such as banks, are still allowed to make photocopies of passports. Storing these photocopies in a physical location or archive is prone to loss of documents, destruction, and data leaks.
However, with extracted and digitally stored data, companies can have greater access control to sensitive information and minimize the risks of data breaches.
Reduced manual data entry errors
Manual data entry comes with a major challenge: accuracy. Often the costs from data entry mistakes can reach an insurmountable amount, eating away at the company’s bottom line.
To tackle this challenge, automated data entry solutions such as AI-powered OCR offers accuracy that is not humanly achievable. In fact, it can even reduce the risk of errors by 50%. Therefore, it saves the company much-needed profit.
The process of extracting and verifying information from passports can be labor-intensive work when done manually.
Another advantage of using AI and OCR is that it provides organizations the ability to scale passport data extraction processes. While companies can increase the volume of the documents, the costs and the labor hours would not increase.
Data extraction made easy
It has never been easier to automate data extraction from passports. Organizations that look to integrate OCR and AI into their workflow are better equipped to reduce bottlenecks.
With various benefits that come with automated data extraction, it is only a matter of time before your competitors will also take advantage of it. To ensure that your company stays ahead of the competition, start passport data extraction with OCR and AI today!
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