Automating KYC extraction through AI APIs

Jan 21, 2022

When we hear the word “KYC”, our minds switch towards bank, money, or payment.

However, it has a larger aspect and uses cases. KYC has been adopted by governments and even applied for contractors, workers, and employees.

Let’s focus more light on what is KYC?

KYC is all about truly knowing the identity of a customer and their potential risks. This isn’t an easy task for an organization to perform on every single customer, especially with the evolving regulations, cost pressure, legacy systems, and more regulatory scrutiny. The amount these organizations have been spending on regulations and compliance is not sustainable. So, definitely, they need help to reduce cost, keep up with the expanding regulations, and avoid penalties — they need machine help, I would say.

Many of today’s “Know your customer” (KYC) process designs at banks and other firms are inefficient, cost-intensive due to manual processing and are therefore not only a thorn in the side of the banks themselves but also for the customers and their entire customer experience in the context of the onboarding. As a result, it is high time for banks to invest in automation in order to transform their KYC process.

The existing KYC processes

The process encompassed various stages of human intervention and manual effort, including –

Collection of relevant documents, like filled application forms and address proof, by an agent
Submission of collected documents at the bank branch
Scan and upload hard copies into a Business Process Management (BPM) system
Manual verification of image quality, visibility, and validity
Addition of tags and indices for the type of document and checks to ensure submission of all types
Manual data entry of all fields into a BPM module
Validation rechecks and adherence to compliance requirements

The existing process involved at least five stages of manual checking before a customer’s KYC was processed. While the use of APIs is not something new, the integration of Artificial Intelligence (AI) with APIs is now helping organizations achieve a ‘platform at scale’ approach, rather than building one-off applications.

Continuing our efforts to make AI easy to adopt, we launched a library of ‘AI’ APIs to meet such specific needs.

KYC Extraction API by Artivatic.ai

In order to gather the information from any KYC document, KYC extraction API acquires information from various ID prods that are required to be submitted as a part of KYC regulation. The segment identifies multiple ID documents (PAN, AADHAR, VOTER ID, PASSPORT) and extracts information accordingly.

How does it work?

Extracting the text and important features from the Image/PDF document
Classify the document among valid KYC documents
Recognize the relevant entities for the corresponding type of document
Detecting the signatures

By combining all the modules, Artivatic provides a very powerful, efficient, and accurate API to recognize, classify and extract information for the KYC documents.

USE CASES OF KYC API

The KYC API is currently being used at one of the biggest Private sector banks. It is also being used for different types of products/services that require validation of KYC documents as per guidelines of regulatory bodies.

Below are some of the use cases:

Account Opening
Service Request
Loan Processing
Credit Card issuance

The whole idea behind building KYC API is to provide a robust solution for all KYC-related approvals. Strict KYC norms are being followed among the workflow of banking, finance, and insurance industries. Hence, automation is largely required to speed up this process.

You can easily get a hands-on experience with the KYC API and other APIs on our website- https://artivatic.ai/products/infrd.