How to Extract Data from KYC Documents Using Automated KYC Verification Software

Are you struggling with the data extraction process from KYC documents? Is it taking your team a lot of time and effort? Are you tired of your error-prone and inefficient data extraction process?

Are you looking for any solution that can streamline data extraction tasks while ensuring compliance with all regulations?

You are on the right page if you are also trying to find answers to these questions. 

In this article, we will answer all your questions regarding data extraction and automated KYC (know your customer) verification documents. 

We will share best practices and modern tools that can help you automate the data extraction process. These methods will significantly reduce your employees’ workloads and boost their productivity. 

Additionally, you will be able to save more than 80% on your document data entry and auditing costs, making your operations more cost-effective and efficient. 

Yes, you read it right! 

With automated KYC verification, you can save more than 80% on your document data entry and auditing costs, providing you with a significant return on your investment.

Before diving into the topic, let’s first understand the importance of data extraction from KYC documents.

The Importance of Data Extraction in KYC Processes

Due to the fast-paced nature of the business world, ensuring compliance with KYC regulations has become very important. Also, with emerging technologies like artificial intelligence, people have started creating fake KYC documents to avail themselves of various offers and benefits. This has created new challenges for business organisations, especially banks and e-commerce companies. 

If you want to counter these threats, then extracting and analysing KYC data is a MUST. It will give you a better and more in-depth understanding of your clients or customers. 

It will allow you to cure all problems before they arise and hinder the growth of your business.

When it comes to extracting important KYC data, the choice is clear. You can either opt for the error-prone and time-consuming manual method, or you can streamline the process with the right tools, such as KlearStack, to automate and enhance your operations. 

Let’s examine the disadvantages and challenges of manual data extraction. This will help you fully understand the core problem. 

Key Challenges in Manual KYC Data Extraction

The manual data extraction process involves many steps, such as extracting data, manually entering it into sheets, and cross-checking every single detail to ensure accuracy.

It’s a never-ending and highly exhausting process. 

The more time your team spends on these tasks, the higher the chances of making mistakes and errors. Just one wrong data entry can cost you an effort of a whole day or a week. 

That means the manual data extraction method is highly time-consuming and hinders productivity.  

Manual data extraction is not just time-consuming and error-prone, it’s also a significant drain on resources. The need for a large team just to extract data is a burden that can be alleviated.

No matter how careful your team is, errors and inconsistencies are always present. 

Due to this, you would not only be dealing with a slow working process but also risk non-compliance with regulations. 

This may damage your brand image and put you into legal battles as well. 

Forget everything; just think about customer experience! 

In this fast-paced world, no one likes to wait. 

Delayed service may lead to loss of customers. Also, without proper KYC data, you won’t understand your customers better, leading to wrong business decisions.

In short, drawbacks of manual data extraction includes –

• Time-consuming
• Highly error-prone
• Resource Intensive
• At Compliance Risk
• Poor Customer experience
• Poor Data Quality

Keep reading for the solution to this.

Benefits of Automated KYC Verification – 

One of the best advantages of automating KYC verification is its “ACCURACY.” Manual KYC verification or extraction is highly error-prone. There is a huge chance of entering incorrect information into the files, which may lead to incorrect business decisions. 

On the other hand, automated verification methods use modern technology like Machine Learning and Artificial Intelligence to SPEED UP and extract the correct data. 

The right data will help you improve your business performance and customer experience. 

Automated verification is not only accurate and fast but also a COST-EFFECTIVE SOLUTION. 

It eliminates the need for extensive human resources for data extraction and processing, thereby reducing operational costs.

You don’t need to pay extra employees for data extraction and processing. 

Additionally, these automated tools come with a USER-FRIENDLY INTERFACE, making them very easy to use. You do not need to train your employees to use them, as it is as simple as handling a smartphone. 

Types of Data Extraction Using Automated KYC Verification Software

You can extract data using Data Extraction Software in three types of documents. These three types are personal information documents, identification documents, and financial documents. 

You can easily extract essential data from personal information documents such as name, address, date of birth, and phone number. This information will give you basic but essential information about your clients or customers.

Automated data extraction from identification Documents is comprehensive, allowing you to extract various types of data, including visas, utility bills, property documents, driving licences, and national ID cards, ensuring a thorough verification process. 

Here are some types of documents that you can extract data from – 

• Visa – Extracting visa number, expiration date and name of issuing country
• Utility Bills –  include gas, water, trash, and electricity bills. 
• Property Papers – ownership papers, addresses as well as legal descriptions and rent agreements
• Driving Licences – you can extract the licence number, expiration date and name of the issuing state. 
• National ID – Verification ID numbers, issuing authority and other important details can be extracted in just a few clicks

Automated data extraction software ensures high accuracy when extracting sensitive information from financial documents, such as payslips, tax returns, and bank statements. 

This accuracy, coupled with the speed of extraction, instils confidence in the verification process.  

Key Technologies Involved in Automated KYC Verification 

Now, you might wonder how a single software program can smoothly complete the exhaustive task of data extraction, boosting operational efficiency by 500%. 

For your information, Automated KYC Verification software uses various modern technologies, such as Artificial Intelligence, Machine Learning, Optical Characteristic Recognition (OCR), and more.

Let’s understand how they work.

1. Optical Character Recognition (OCR) – 

OCR is a modern technology that can read and recognise text from scanned documents or images of passports, various licences, or utility bills. 

It also converts the data into machine-readable format. 

OCR can read and recognise any type of data, including alphabets, numbers, and special characters, with 99% accuracy. 

In short, OCR is the most effective and efficient method for document extraction and verification. 

2. Artificial Intelligence (AI) – 

Nowadays, artificial intelligence is used in every software to improve its performance and efficiency. AI helps automated KYC Verification Software understand the pattern of given documents. 

For example, if you are trying to extract and verify data from invoices, the software first understands the structure of the document. 

Once it is done, only the software moves ahead, ensuring the highest accuracy. 

3. Machine Learning (ML) – 

This is one of the most important factors of automated data extraction and verification. AI provides intelligence to the software, but ML helps software get better and better with experience. 

In short, ML uses the software history to avoid mistakes and errors that occurred in the past. This automatically improves the software’s accuracy. 

After some time, the system becomes extremely accurate and almost eliminates the need for human intervention or assistance. 

4. API Integration – 

API integration is the major point of the system. 

If you have automated the KYC verification process using the software but want to integrate it with your other existing systems, you can do that, too. 

You can seamlessly connect or integrate KYC Verification Software with your existing software, such as CRM, compliance software, or third-party verification software.

Apart from these 4 modern technologies there are other tools as well that KYC verification Software uses. 

Some of them are listed below – 

• Natural Language Processing (NLP)
• Biometric Verification
• Blockchain Technology
• Data Encryption

Use Cases of Automated KYC Verification

Let’s see how automated KYC verification can be used in various business fields. 

1. Banking & Finance  – 

Banking and financial institutions deal with immense amounts of customer data every day. Customer data includes various sensitive information, such as address, account number, account balance, and PAN card number. 

It is impossible to manually verify and analyze this massive amount of data to perform banking operations. 

For example, banks have to analyze and verify all customers’ transactions and other information just to pass a loan. 

Manual KYC verification may lead to fraudulent activities and compliance breaches.

Therefore, automated data extraction in banking has become extremely important to ensure complete accuracy in KYC document verification. 

Automated KYC verification software like KlearStack can solve this problem. This software will speed up all banking practices, increase productivity, and provide the best service to all customers.

2. E-commerce and online marketplaces  

Online shopping is the new trend; people prefer it over offline shopping. This has created a very big market for e-commerce businesses, but the risk of potential scams and frauds is also increasing. 

Many people are using fake identities to avail themselves of various offers and products provided by e-commerce companies. 

The irresponsible use of AI has made it extremely difficult to differentiate between fraud and genuine customers. 

In some cases, fraudsters also receive other people’s parcels or deliveries using fake ID cards generated by AI. This is badly affecting both customers and e-commerce businesses.

If you are also facing these kinds of problems in your e-commerce business then start automating KYC verification by using KlearStack software. It would be one of the best decisions you can make for your business. 

It will save your time,  money, efforts and eventually your business. 

3. Insurance Sector – 

This is one of the most vulnerable business sectors due to the flood of fake KYC documents.

All insurance companies encounter fake insurance claims every day. Due to this, insurance companies take a lot of time to cross-verify all the KYC information before processing insurance claims. 

This has made it extremely important for insurance companies to verify and proceed with other insurance practices quickly. 

Automated KYC verification can solve this problem by quickly cross-checking policyholders’ identities. This will minimize error and administrative costs and boost the speed of insurance practices.

4. Healthcare – 

Healthcare workers engage with numerous types of documents related to administrative processes and patient care, such as medical history records, discharge summaries, medical test results, and insurance papers. 

All these documents cover a vast amount of important information, and the structure of these data arrangements also changes with documents.  

Therefore, it becomes extremely tough to extract relevant information from all the documents on time. 

But with the KlearStack data extraction and KYC verification tool, you can easily create templates for your documents to extract data. 

Templates take less time to extract and verify data, and they are very easy to set up and maintain. 

Apart from this, templates offer massive room for customization, so you can simultaneously combine and analyze data from other documents. 

5. Real Estate – 

Real estate is another sector where automation is a necessity. As real estate is booming in India at a rapid pace, managing customer records with their KYC details is crucial. 

Real estate business owners and brokers can simplify their tasks by automating the KYC verification process. 

This is not only affordable but also a highly efficient way of doing business in this fast-paced world.

6. Government Institutions – 

Government organizations already know how big the role automated KYC verification software plays in their day-to-day business. 

It has become impossible for governments across the globe to complete daily tasks without using automation software. Due to this, governments from the UK, the US and Japan have already started using this modern software. 

The Indian government uses them for KYC documents such as Aadhar cards, PAN cards, and driving licences. 

Automation enhances government efficiency and provides the highest possible security for KYC documents. Therefore, the government can easily ensure the Right to Privacy of its citizens. 

Step-by-step guide on how KlearStack can be used for KYC verification 

Step 1: Register/login to the software

Once you create an account on KlearStack, you will receive login credentials. Use those credentials to access the dashboard.

Step 2: View the Dashboard & Upload the Document

Once you log in, you will see various document options. Choose the correct document, in our case, “insurance paper.”

Step 3: Upload Documents

You will see the “Add New” button at the top right corner of the dashboard. Click on it and upload your insurance documents. 

KlearStack supports various document formats, such as PDF, JPG, PNG, ZIP, BMP, Word, Excel, TIFF, and even scanned images. 

Step 4: Select the Number of Pages and Business Type

If your document contains multiple pages but you want to process only a few of them, you can do it by selecting the number of pages. 

You will also see an option to select the type of business, such as B2B or B2C, for better categorization and storage of the processed data.

Step 5: View Added Documents

Here, you will see the most recently uploaded documents, with extracted data that provide a quick preview of all necessary information. 

Step 6: Click to check the extracted data.

To get detailed information about the extracted data, click on the uploaded insurance document. 

After the click, you will see all the relevant fields on the left side of the screen and the uploaded document on the right.

Step 7: Verify the Captured Information

At this stage, you can verify the extracted information by simply clicking on the data field. You can also edit the data or information if you find incorrect information. 

Step 8: Click on approve once verified.

Once you finish the verification, click on the “approve” button.

And you are done!

Step 9: View the invoice on the dashboard.

After your approval, you can see your insurance document and other approved documents on the dashboard. 

KlearStack: Revolutionize Your Data Extraction with 99% Accuracy, 500% Productivity Boost, and Unmatched Security

KlearStack is one of India’s premium data extraction software applications that uses modern and top-notch technology to achieve high accuracy and speed. 

The best thing about KlearStack is that it supports various files, such as PDFs, PNGs, and Excel files. 

It also supports images, which means if your required information is in the image format, you will face no problem extracting data from it. 

Apart from this, KlearStack improves its performance by effectively utilising OCR, AI and ML technology to ensure 99% Accuracy. 

Additionally, the API feature allows you to integrate KlearStack with your other existing systems or applications, such as SAP & QuickBooks, guaranteeing a 500% boost in operational productivity and efficiency. 

Another good thing about KlearStack is it has self-learning capabilities. That means it gets better and better every time you use it.

Most importantly, KlearStack is HIPAA, SOC 2 and ISO-certified software. 

Therefore, you don’t need to worry about the data or documents you will upload to the software. 

EVERYTHING is SAFE!

If you also want 99% accuracy, a 500% boost in productivity, and the highest possible security, look no further than KlearStack.
Book your free Demo here and start experiencing the magic of KlearStack!

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