Home » Address Verification Service in Banks – The Growing Need In The Digital Era

Address Verification Service in Banks – The Growing Need In The Digital Era

by Steven Brown

Businesses facing the difficulties of returned shipments can cost them huge losses financially as well as reputationally. Onboarding the clients without identifying them can cause businesses to be at risk of getting inflicted with criminal activities. Financial institutions mailing important bank documents to the wrong location can raise the risk of getting them in the hands of fraudsters. Entering incorrect addresses is a major concern for businesses to deal with so that scammers can be restricted from entering the global market. An automated system of address verification system can help companies onboard legitimate clients only and for keeping the chargeback ratios as low as possible.

Creating Checkout Process Smooth by Enabling the Automated Address Suggestions

Customer experience plays a significant role in uplifting the brand image of the company and is essential for reaping profitable benefits. One of the primary methods through which a business can enhance its customer onboarding experience is by enabling swift checkout processes. Automated generated results can save time for consumers from filling the same information each time they decide to check out and will also protect them from filling inaccurate addresses. Complex procedures asking for detailed information can frustrate the clients and increases their chances of abandoning the whole procedure. As evident by Shufti Pro News, poor customer service and complex checkout procedures leading consumers to abandoned carts is the main challenge faced by online retailers. 

Conducting User’s Verification of Address Effectively In Banks

While clients put forward their request of opening an account in banks or performing any transactional activity, it is feasible for financial institutions to verify addresses of their clients so that no one invades the accounts of the users illegally. Checking that the user is residing at the right location helps in keeping fraudsters away from banking sectors. Any information regarding account opening or sending the credit cards to the user at the inaccurate address can become a target of identity theft. Crooks can steal those credit cards and use them for buying illegal products under the name of someone else. Therefore, if businesses keep on onboarding clients by not verifying addresses of them then they can face the issue of misplaced deliveries at a high rate. 

Achieving Higher Levels of Accuracy with Online Address Verification Solution

Online address verification services have been proven to be effective to validate addresses of the clients in a time-efficient way. Manually entering the addresses can cause inaccuracy since typing mistakes can be made by customers. Since humans are prone to make mistakes, it is feasible to move towards a more reliable option of address verification. The AI-based address verification enables digital onboarding to occur at a relatively higher pace while minimizing the chance of errors due to automatically generated address suggestions. Moreover, it has gained a lot of popularity in recent times and it is because it consists of a high rate of accuracy. Multiple enterprises have now started to invest in online address verification solutions to use it as a source of securing potential customers similar to Shufti Pro Fundings. 

The 3-Step Procedure of Verifying an Address Digital

Step 1

In the initial step, the user’s facial identity is matched with the photo posted on the identity document. The user uploads their photo taken by a webcam or smartphone camera to start the verification process. The facial features are compared to detect if an imposter is trying to onboard before the approach proceeds any further.

Step 2

After this, the user uploads documents that can act as proof of evidence consisting of their residential or business location so that the authenticity of the user’s address can be determined completely. The required details are extracted by OCR for verification which can, later on, be used to edit or update address information. 

Step 3

In this last step, verification results are dispatched by carefully analyzing the documents. Any photoshopped or modification that has been made to the document will be detected by the system instantly causing the verification to decline. The results are shared with the customer and are saved in the client’s back office. 

Wrapping it Up

Financial institutions are vulnerable to facing fraudsters since they deal with large amounts of cash on a daily basis. Identifying the clients is not enough, pulling out details about the address information is also necessary for a business to flourish legitimately. Automated address suggestions can help clients to save time and make the checkout process smooth enough through which potential customers can be secured at the right time. Moreover, banks can allow the opening of accounts of the users based on authentic locations obtained through address verification services. It reduces the chance of misplaced deliveries of important documents, products, and services.

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