Address Verification in Banking Sector – Securing Digital Operations

Addresses are one of the vital identification attributes to validate customers’ addresses. Similarly, banks also need to perform address verification to ensure the customers are legit entities. Fraudsters use fake information to get their hands on someone else’s debit/credit cards, avail financial benefits, or apply for account opening. 

Therefore, to combat criminal activities, regulatory bodies have made verification of address a legal obligation. As a part of due diligence, banks need to validate customers’ addresses prior to assisting them. The online address verification solutions provide financial institutions with real-time identification and geolocation analysis that further help identify customers. The blog sheds light on ways online solutions assist banks to counter fraudulent attempts. 

Challenges that Banks Face While Verifying an Address

Banks have been using manual methods to validate address of customers. However, the process is cumbersome as it takes weeks to get results. Moreover, manual verification involves high risks of human errors and creates unnecessary friction as well as delays for clients. Banks’ account opening process largely relies on documents. Fraudsters are using various advanced tools to either camouflage or create fake ones in order to easily pass through the address verification process. 

Therefore, banks require robust and automated solutions to make the document verification process of utmost security. However, criminals still bring in techniques to exploit banking operations. As per Shufti Pro News, this helps them escape the address verification systems and perform illicit activities such as money laundering. More of the challenges that banks face are in the next section. 

Forgeries in Documents’ Templates

In order to open new accounts or approve applications for benefits, banks require customers to provide proof of their address. The first step in online address verification process involves manually entering information into the form. In the second step, the customers are asked to upload supporting government-issued documents that serve as evidence. For instance, ID cards, passports, driver’s licenses, utility bills, tenancy agreements, tax invoices, and employment letters. 

Despite employing automated and robust address verification services, banks still face fraudulent attempts. This is mainly because criminals use advanced software to make changes to documents. This helps them steer clear of the identification checks. Every region has distinct template styles which makes it easier for fraudsters to forge documents. However, with robust and AI-powered solutions in place banks can efficiently verify address and templates.

Additional Costs for Document Handling

Along with the high risk of human errors, manual verification of address also involves additional operational costs. Moreover, the verifiers are incapable of handling huge data sets which slows down the identification process. Moreover, criminals use technologically advanced tools to forge documents and make changes within them. This makes it more challenging for manual verifiers to identify these changes. 

Hence, banks need to bring in more efficient address verification solutions. Ultimately, AI-powered services provide institutions with real-time document validation along with analysis of geo-location while consuming comparatively fewer resources. 

Complex Customer Onboarding 

Since digitization took over, banks are shifting their operations online to better assist global customers. Similarly, clients are demanding easy sign-up and quick transaction solutions. However, due to inadequate onboarding and address verification mechanisms, banks face a severe backlash in terms of customer retention.

In case of inefficient mechanisms, the process becomes slower and results in customer aggravation. Therefore, banks require completely automated verifying address solutions for bringing convenience and hassle-free onboarding to clients’. 

Online Address Verification System – Brining Authenticity to Banking Operations

The digital solutions help banks validate address with ease while ensuring seamless customer onboarding. Moreover, institutions can ensure active compliance with regulatory standards. Online address verification services are helping banks not only authenticate documents but also analyze geolocation in real-time. Ultimately, financial institutions can fight criminals and restrict their illegitimate access to banking operations. More of the benefits of address verify solutions involve; 

Prevents Address-Related Fraud

Where criminals are using efficient methods to bypass address verification checks, banks need to place restrictions on them by employing automated solutions. The AI-powered top-notch services can validate ID documents in real-time which adds an additional layer of security to the customer onboarding process. Moreover, automated solutions like geolocation analysis can further eliminate human efforts, ultimately minimizing chances of errors and friction. 

Cross-Matching Against Global Registers and Databases

Another type of authenticity check in the online address verification process is coss-matching against global registers. AI-powered document verification services allow banks to access databases, helping them to validate information, documents, and cross-verify customers’ location.

In the End

Verifying address provides evidence regarding the whereabouts of customers which is a part of their identification process. Criminals use fake or stolen details to open new accounts, avail governmental benefits, and commit money laundering. However, with AI-powered address verification solutions in place, banks can not only secure online transactions but also provide a secure and improved experience to legit customers