A doc maintained by a monetary establishment, it serves as an official document of an account holder’s handwritten identify. This document is used to confirm the authenticity of signatures on checks, withdrawal slips, and different transaction-related paperwork. It offers some extent of comparability for financial institution employees when processing transactions, making certain that the particular person authorizing the switch of funds or different account exercise is, in reality, the approved account holder.
This document performs an important position in stopping fraud and defending account holders’ property. Traditionally, it was the first technique of signature verification. Whereas expertise has launched extra superior strategies like digital signatures and biometric authentication, this bodily or digital document of a handwritten identify stays a elementary side of account safety and compliance inside the banking trade. It acts as an important safeguard, lowering the chance of unauthorized entry and potential monetary loss.