ID scanning technology has come to play a huge role in the day-to-day processes of the banking industry. Learn more on our blog.
Identity checks have been commonplace in sensitive industries for years, with people being asked for ID when buying tobacco, alcohol, dangerous products like kitchen knives, and even some pharmaceuticals. This has led to the expectation of producing an ID to prove your age and identity. Another prominent industry that is dependent on effective ID checks is the banking industry.
The banking industry is expected to place the most scrutiny on identity verification, and with good reason. The prevalence of bad actors who intend to use the financial system for dubious means is high, and new technology, like ID scanners, is helping the industry tackle this in more efficient ways. In this article, we’ll look at the role ID scanners play in the world of banking.
But first, what exactly are ID scanners?
ID Scanners typically look like your average scanner. A rectangular shape with a lid attached by hinges that opens or closes, or with a chute where the ID documents are placed 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, driver licenses, passports, or business cards can be easily scanned, stored, and checked. These scanners can read printed information, barcodes, magnetic strips, and QR codes and then store that information in a database. Companies in the space—like Adaptive Recognition—are leading the way with a diverse range of products, research, and technological development in the field. (1)
What role do ID scanners play in the banking industry?
Such technology is hugely beneficial to the temperamental nature of ID verification in the financial sector. Below are some of ID scanners’ most important functions.
- Instantly detect people on blacklists: This has been in practice for years in entertainment districts to prevent banned patrons from entering establishments. In the banking industry, ID scanners play a similar role. (2)
By quickly and easily compiling their identity data, scanners can instantly check this against stored records. This check will then inform you of any blacklists or restrictions someone is subject to, and even provides detailed information on their credit history.
- Identify fake IDs: Even with internet banking being on a continual upward trend, trust is still a major issue. With hacks and breaches being all too common, UX is not enough to quash consumer fears, and it takes active trust-creating activities to diminish the perceived risks and fears of internet banking held by consumers. (3)
This is where ID scanners come in, instantly recognizing the imperfections of fake IDs to stop scammers in their tracks. With this knowledge in mind, consumers can sleep better at night knowing that the potential of identity theft is inhibited with the introduction ID scanners into the banking sector.
- They accumulate data on demographics: “Data is the new oil,” declared Clive Humby in 2006 after implementing a supermarket Clubcard system and earning millions of pounds in the process. How exactly? In a nutshell, big data storage and management is a shortcut to your target market. (4)
ID scanners collect information such as name, address, gender, and date of birth to then store and compile it into a database. These stats can then be used to best meet the needs of the clientele, tailoring promotions to the most prevalent demographics.
- Assist with better office workflow: As a bank employee, the previous method of recording someone’s details was to take their document and manually input the data. In a customer facing role, it’s obviously quite a challenge to both perform data entry and simultaneously provide the assistance your client deserves.
An ID scanner completes this job in its entirety, allowing you to give your undivided attention to your clients. This means you can keep your labor to a minimum and work with more clients, ultimately boosting 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 a high-functioning and efficient ID scanning system in place is great in terms of compliance, and approaching crime and fraud head on.
This happens in two ways. These systems make the common teller or customer relationship manager capable of identifying malicious actors on the spot, effectively stopping them in their tracks. Additionally, the knowledge that ID scanning technology is being used at your branch functions as a deterrent against illegal and criminal actors from using your services.
ID scanners have a role to play in many industries, and the banking sector is one that benefits tremendously. The ability to instantly record key data from clients’ documents helps banks to identify people on blacklists, prevent the use of fake documents, collect data, improve workflow, and deter criminal behaviors.