Well, It doesn’t matter how much the online platforms are growing, the rate of financial crimes is still increasing. As per recent research, the global identity verification market had a market size of USD 10.9 billion in 2023 and is projected to grow at a compound annual growth rate of 14.9% from 2023 to 2028. For 2028, the revenue is forecast to reach $21.8 billion. This increase has shown the importance of the client identification process (CIP).
What is CIP? – A Complete Overview
CIP stands for “customer identification process”. It is necessary for a successful business because it tells companies whether they are connecting with an authentic person or not. It involves online document verification, which is used to verify ID documents, passports, bank statements, and all the government credentials of the potential client. To get a proof of Identity document, a genuine image is necessary that will be checked against the ID document’s picture. The pictures are compared just to check whether the customer is authentic or not.
The major purpose of CIP verification is to provide companies with legitimate customers and ensure them with a crime-free environment. When there are all legit candidates entering into the organization then there will be no money laundering or terrorist financing.
What is CIP Document Verification? Why it’s Important?
Document verification in customer identification process (CIP) is necessary for every online platform that wants to:
- Secure its business from fraudulent activities
- Alleviate the risks of crimes within their firms.
- Want to build a trusted relationship among their customers.
For instance, SAAS companies, including In-drive and Uber that help both their customers and drivers, need proper details of their clients. They verify their potential candidate’s documents through CIP to ensure they work with authentic customers. These precautions are necessary for online businesses to combat digital identity theft. Moreover, customers can have a seamless experience when they join a company that prioritizes customer identification.
Traditional Ways of Customer Identification Process (CIP)
In traditional times, the customer has to submit his identity card and a few documents to the office. This customer identification process is manual and requires a lot of effort. The officers had to spend most of their time checking the documents, resulting in mostly human errors. To solve all these issues, online document checks were introduced, and they are now working with increased energy and less time. Businesses can now easily verify documents online with the help of the automated customer identification process.
Software for Document Validation in CIP
Online document verification in CIP can be done by Nanonets and Match genuine microprint. These two software checks for the validity of Identity documents, tax statements, passports, and all academic and bureaucratic documents. With this software, workers can now go to their homes on time.
Advantages of Customer Identification Process
Online document checks in CIP can automatically validate the new clients on the platform. The system can automatically refresh itself, it doesn’t need human efforts for its work. These services help companies with their onboarding procedures. With online CIP, both the company and the candidate can easily interact during the onboarding process.
Now, the candidates don’t have to waste their time while submitting their documents and CVs by going to the office branches. They can easily submit it online by saving their extra energy and money. Now, companies do not have to waste their time checking whether the candidate is eligible for the post because it automatically checks for the client’s eligibility. Through the customer identification process, companies can easily verify their candidates and save themselves from fraudulent activities.
Steps to be Taken in the Document Verification of CIP Process:
These three steps will explain the question “What is CIP?” in detail. These steps are:
- Original Image Submission
To verify the documents online in CIP, the customers must submit an original image with their ID documents so that the kyc process can check for their validity. To ensure the companies that the customers are authentic, clients also have to submit one of their selfies so that the system can co-relate the original image with their original image.
- Verification of the Documents
After the process of submission, the customer identification system checks the documents to see whether they are authentic or if someone pretends them to be legit. If the system finds any identity document forgery, the client who had submitted those documents shall be held responsible for it.
- Final Validation
When the CIP has completed its checking of documents and found everything up to its expectations, then the customer can look up the results.
Winding up
This article accurately portrays the answer of what is CIP? And why it matters the most for companies and their clients. Document validation in CIP provides its services to all large and small sectors. Through these client identification processes, customers can not only get their documents verified, but it will also secure them from criminal activities. Moreover, these effective services take complete care of customers and never share their information with any other server. Through CIP, companies can save themselves from diverse identity-related fraud and can live a peaceful life, free from financial crimes.