For organizations that often deal with large transactions, it is critical to quickly recognize the authenticity of documents and quickly and securely verify new customers when signing up. This is especially true for financial institutions such as banks, cryptocurrency companies, and others. In addition, organizations need to know who they deal with when reviewing applications for new accounts. In this article, you will learn more about the importance of signatures and document verification during the transaction process.
Why is the document verification process necessary?
Document verification refers to scanning all official documents required for the transaction. These can be various bank statements, passports, and more. In addition, they are checked for security features such as watermarks, stamps, holograms, etc. The potential customer’s personal information is also verified and validated with third-party sources, which is also a very important procedure due to the various restrictions of the company in providing their services or selling their products.
Nowadays, companies have increasingly begun to move into a digitalized space for customer interaction; therefore, document verification is also being modernized. So, today, to verify documents, customers can exchange data in an online area and even upload videos to confirm identification. Potential customers often think this process would go much faster and more efficiently in person, but it can be much more time-consuming for financial institutions. In addition, it can be unreliable due to human error and expensive, as the cost of a team dedicated to this task is constantly increasing. It’s also worth mentioning the high risk of fraud during document identification, as cybercriminals are always coming up with innovations to commit fraud now that technology is advancing. Nevertheless, justice is always on the side of the good, and modern software can repel hackers’ attacks and recognize the lie.
How can a virtual data room help?
No transaction can occur without legally signed and thoroughly verified documents, but verifying and signing documents in a physical format can be inconvenient, inefficient, uneconomical, and risky. Virtual data rooms are digital transaction spaces that contain all the tools necessary to close a transaction online legally. They provide owners with a flexible, centralized, and secure space into which they can invite temporary users, exchange documents and messages, and sign documents using electronic signatures. Data Rooms are certified programs to international security standards, so they address several major issues that get in the way during a transaction:
- Security from external and internal threats
- Document management efficiency
- Automation of routine processes and neutralization of human error
- Flexibility -no need to be physically present during every step of the transaction
When it comes to signing and verifying documents, VDR simplifies both of these operations thanks to features such as:
- Optical character recognition – this function itself reads information from the document and identifies it
- Electronic Signature -documents signed within the VDR become legally valid
- NDA – non-disclosure agreements will allow much freer access to documents for other users and minimize the chances of data leakage
These are not all the features virtual data rooms are capable of. However, if you’re considering purchasing this product, you can choose from the best data rooms here and provide your customers with better security and a smoother transaction process.