With about 350 million unbanked adults in Sub-Saharan Africa, which accounts for 17% of the global total, the…
With about 350 million unbanked adults in Sub-Saharan Africa, which accounts for 17% of the global total, the proper adoption and utilization of AI and computer vision in Africa’s finance sector can have immense future potential.
Integrating these advanced technologies can revolutionize the sector, improve efficiency, and provide new opportunities. The KYC process and National ID verification can significantly benefit from computer vision technology, including facial recognition and OCR.
Computer vision technology has the potential to significantly increase financial inclusion and expand access to financial services for the previously underserved unbanked population in Sub-Saharan Africa.
By enabling mobile-based identity verification, individuals can easily onboard themselves by taking a picture of their ID cards or a selfie, which can be used to verify their identity. Computer vision can use facial recognition algorithms to match the image captured with the ID card, reducing onboarding time and eliminating the need for physical verification.
How computer vision can transform African Finance
Here are eight potential ways that computer vision technology can be implemented in the finance sector in Sub-Saharan Africa to improve KYC and National ID verification, as well as provide customers with self-serve options:
National ID Verification: Financial institutions can use computer vision to verify the authenticity of the National ID card presented by a customer during the KYC process. The system can match the biometric data on the card with the customer’s physical features to ensure a reliable match.
Loan Application: Computer vision can analyze customer documents and information submitted through online loan applications. The system can quickly verify the customer’s identity, income, and credit history, making it easier for financial institutions to approve or deny loans without manual processing.
Facial Recognition: Computer vision can be used to capture and analyze the facial features of customers during the KYC process. This can be linked to the National ID system for enhanced accuracy in verifying customer identities.
Document Scanning: OCR technology, banks and other financial institutions can automate the process of reading and processing these documents presented by customers, such as passports or driver’s licenses, during the KYC process. This can ensure the document is genuine and accurate.
Check Deposit: Computer vision can scan and process customer check deposits through mobile apps or ATMs. The system can analyze the check for authenticity and deposit the funds into the customer’s account without needing a physical visit to a bank branch.
Fraud Detection: Computer vision can monitor customer transactions and behaviour for potential fraud or suspicious activity. The system can flag suspicious transactions for further investigation by financial institution staff.
Read also: 5 simple strategies for preventing fraudulent transactions in 2023
Personal Finance Management: Computer vision can provide customers with personalized finance management tools like budgeting and spending tracking. The system can analyze the customer’s account history and transactions to provide tailored financial advice and recommendations.
Chatbots: Chatbots powered by computer vision can provide customers with quick and accurate responses to their queries, reducing the need for customers to visit bank branches or call customer service centres. The chatbots can also be programmed to provide personalized services based on the customer’s account history and preferences.
While adopting computer vision technology in the finance sector in Africa may be slow at first, financial institutions can gradually introduce self-service options and provide customers with tutorials and training materials to increase adoption rates.
Overall, computer vision technology has the potential to revolutionize Africa’s finance sector, particularly concerning KYC and National ID verification. By modernizing the sector, financial institutions can improve efficiency and provide a better customer experience for Africans.
This article was written by Tesfaye Mengistu, a seasoned business developer with 14 years of diverse experience working with multinational firms. He holds a Bachelor of Science in Electrical Engineering, a Master’s in Business Administration and a Master of Science in Artificial Intelligence.