The prevalent crimes such as chargebacks have led banks and other firms to develop robust identity verification solutions. Many sectors have started investing in identity and address verification services for secure client onboarding. Without having advanced identification services, the probability of heinous crimes increases dramatically.  

Address verification is a process to validate the address of clients when they are onboarded or at any time required by the banks to monitor unusual transactions. It ensures that only genuine users are taking the services and that transactions are carried out in a safe and protected environment. Checking that the address actually exists is essential to validate clients’ identities. 

Documents Required for Verifying an Address

The important thing to note here is that the documents submitted for verifying an address should not be three months old otherwise the system would decline them. The documents that the address verification system supports are:

  • ID card
  • Employer letter 
  • CPR smart
  • Passport 
  • Driver’s license
  • Envelope 
  • Insurance agreement
  • Bank statement 
  • Tax bill 
  • Utility bill 
  • Rent agreement 

The aforementioned documents serve as evidence of an address and should be upgraded too. Once the type and authenticity of the document are checked, the address is retrieved using optical character recognition technology. During the authentication procedure, the solution validates the complete name of the client written on the document. The system will report immediately if it finds the document to be forged or photoshopped. The AI-powered address verification services can even detect the folded edges of the provided document, mitigating the risk of any fraudulent activity in the best way possible. 

Why Banks Need to Verify Adress 

With the increasing number of fraudulent activities, the demand for robust verification solutions increases. Here is why banks need online address verification solutions

Fraud Prevention

One of the important reasons why banks or other financial companies need verification of an address is to deter fraudulent activities. With the evolution in technology, fraudsters have also become smarter. They use sophisticated ways to dodge the verification processes for their illicit purposes. The major sector targeted by such bad actors is banks as evident from Shufti Pro news. So, the only solution to avoid the ever-increasing criminal activities is a robust identity verification solution. Besides securing the firm also enhances its market value. 

Lessen the Number of Returned Shipments

One of the major losses faced by the banks and other firms is returned shipments. It costs the companies a huge. IInappropriateaddress results in returned shipments and the company have to suffer much in terms offinancialllossess. With address verification, the problem can be resolved and the company could focus on other tasks with peace of mind.  

Enhance Customer Experience

All companies struggle hard to provide their clients with the best service possible whether it is a bank or any other financial firm. Having robust address verification solutions proved fruitful as when the bank has a proper address, the communication with its users becomes easier and deliveries can be shipped within the set time. This results in improved client experience. The happier the client, the more positive image they portray about the firm and leads to generating greater profits and making its mark in the competitive world.

Better Compliance With FATF Recommendations

As the fraudsters are coming up with sophisticated tactics to exploit banks and financial sectors, regulatory bodies are also revising their compliance framework. Banks are under great observation of the regulatory authorities and are mandated to follow the laws. The FATF recommends all the sectors to have a robust verification solution that not ensures client protection but also builds the firm’s credibility. So, having address verification not only safeguards the company from criminal activities but also makes it adheres to KYC and AML regulations and prevents them from hefty non-compliance fines. Many firms have started to accept investments like Shufti Pro funding, just done by Updata partners.

Final Thoughts

Returned shipments, account takeovers, money laundering, chargebacks, terrorism financing, and many other crimes are increasing day by day in the financial sectors. The reason is either the company does not have identity verification solutions including address verification or they have those solutions which are not upgraded with the latest technology or neural networks. So, deploying robust address verification solutions has become a need for banks and other businesses. It not only provides them with greater security but also improves the client experience. Furthermore, staying compliant with global regulations, by deploying advanced verification solutions, prevent the companies from heavy penalties and builds their credibility in the competitive world.

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Elaine Bennett
Elaine Bennett is an Australian-based digital marketing specialist focused on helping startups and small businesses grow. She writes hands-on articles about business and marketing, as it allows her to reach even more people and help them on their business journey.

Posted by Elaine Bennett

Elaine Bennett is an Australian-based digital marketing specialist focused on helping startups and small businesses grow. She writes hands-on articles about business and marketing, as it allows her to reach even more people and help them on their business journey.