An identification module is disclosed for use in a key making machine. The identification module may have a key receiving assembly configured to receive only a shank of an existing key, and an imaging assembly configured to generate an image of the shank while the existing key is being manually held in the key receiving assembly. The identification module may also have a housing configured to house the key receiving assembly and the imaging assembly. The housing may have a slot formed therein to receive the existing key. The identification module further may have a tip guide configured to receive a tip of the shank of the existing key as the tip is inserted through the slot. The tip guide may be linearly movable by insertion of the existing key from a first location at the slot to a second location away from the slot.