Tue. Jun 25th, 2024

KYC (Know Your Customer) is a service incorporated into a business or financial entity’s customer identification process, and is provided in a short period of identity document verification. The importance of online address verification is often overlooked. It not only assists businesses in delivering things to the exact spot where they are needed, but it also protects them from an increasing number of identity thefts.

Geographical data is one of the most vital aspects of the process of Identity Verification. This little data field can occasionally show a lot of information. Addresses should be supplied and checked appropriately whether a client is a customer of a local or foreign firm, online or not. With the introduction of online address verification the onboarding process for customers has become more reliable and much more transparent thanks to global Saas IDV suppliers. To avoid being traced, many imposters generate bogus ID records with fictitious addresses.

Address Verification Procedure

  • The client sends the documents’ images. Along with ID records, the KYC compliance system requires recent confirmation of the client’s location in the form of an electricity or other utility bill.
  • The data collected from photos of ID documents and bills is converted to text for online address verification by the use of Optical Character Recognition (OCR) Solution
  • The online address verification solution checks the client’s geographic location and other credentials using categorized worldwide databases. In a short period of time, the conclusion is presented to the business authorities with greatest authenticity.

Commercial Uses of Address Verification 

Providers of Logistic Operations

There are a few countries and regions that believe the online address verification solution is better suited for businesses that operate globally and have worldwide clients. This isn’t the case at all. Using AI-driven technologies to verify a localized customer’s address can prevent a number of problems. In the traditional business model, if logistics management sends a product to the wrong remote destination, it will incur more expenditures over the next delivery and the customer will be charged an additional price. All of this may be avoided with online address verification.

To avoid mistakes on their behalf, the providing third-party can confirm the actual addresses of clients. The overall solution can be viewed as a long-term, well-optimized asset.

Online Ticketing Platforms 

Although airport security does an excellent job, a specific e-ticketing platform can help their business by providing online address verification. AI Powered and Machine Learning solutions have made the identification process streamlined that performs better due to iterative learning over a definitive period of time.

Banks and Financial Institutions 

Since the outset, one of the most important clients of online address verification has been the finance industry. Every client is validated by a worldwide IDV operator in banking using digital screening, which is totally backed by an interconnected network of numerous artificial intelligence models.

Online address verification guarantees that the location provided is accurate during the client verification procedure. This is especially critical when dealing with multinational and distant clients. The authorized management verifies that they are not violating any pre-established policy measures or laws.

Customer onboarding policies vary by area, depending on a variety of circumstances. Online address verification reveals those elements. Other considerations include a region’s global position, as well as political ties between the regulatory authority of the concerned financial company and the customer. With online address verification, everything is taken care of.

For example, certain countries are barred from forming a professional partnership with a specific region. Online address verification is used to comply with all of the imposed regulations and restrictions. Banks and cryptocurrency exchanges are either banned or the customer’s parent country is on the blacklist.

If a business client is from a blacklisted state or region, or if that country  is a centre of unusual activities, such as being the habitat of terrorist units, the firm can be alerted immediately and, based on compliance policies, place the customer profile in a high-risk zone if possible. The process is shaped seamlessly with the service of online address verification.

The same can be said for virtual currency platforms and crowdfunding marketplaces; businesses that provide digital services can reduce the margin of error.

Wrapping Up

Business organizations and financial institutions benefit from the online address verification system. The small portion of the KYC compliance solution provides far more than expected. As a result, global IDV solutions are expected to be the next big thing in every industrial area. Multiple industries benefit from the global service of online address verification, including logistics firms, shipping companies, banks, cryptocurrency exchanges, and so on. There’s no way to place a price on a risk-free customer onboarding process. 

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