Due to technological innovations, frequent changes in buying behavior and habits of consumers are observed and these advancements give birth to new market segments, so in order to maximize risk-free customer onboarding, organizations invest their capital in automation and integrate it with their human talent for verifying the address of a user.
In the era of the digital economy, Address Verification Service (AVS) enables corporations, banks, and financial institutions to maximize customer pool and partner with risk-free alliances.
With the integration of AI checks and human verification, organizations can verify the geographic/origin location of a customer/user in no time to make sure that the person or entity does not belong to a blacklisted region or comes from a country/territory with substantial cases of corruption. The authentication solution increases the interoperability swiftly and avoids any sort of complication in the future.
Functioning of an Address Verification System
From opening an account to signing up on a cryptocurrency platform, every industry is benefiting from AI-powered address verification systems. The process consists of mere three simple steps:
- In the preliminary KYC verification, for verification of address, the prospect uploads a number of ID documents such as a national photo-based ID card, driving license, insurance agreement, CPR smart, bank or credit card statements, and others.
- The address verification solution extracts the identity and residential information from the presented records by applying the state-of-the-art OCR (Optical Character Recognition) technology. The optical scanner extracts the address and other necessary fields from documents and enables the organizations to verify the authenticity of the information by matching it against the data incorporated in national data registration authorities in no time.
- Post that the address verification solution displays the end results and for transparency, the system provides evidence to the verifying firm or institute in the form of a video recording of the address document and its images.
Characteristics of Updated Address Verification Solution
There are a set of standard protocols followed by the solution for verifying an address information of a regular prospect, UBO, or legal representative of a firm:
- The AI-powered address verification solution does not accept documents older than three months other than passport, license, and photo-based ID to ensure that authentication reaches its end potential
- The OCR technology of the solution detects holograms or counterfeiting in a go
- The documents folded, photoshopped, and cropped are recognized instantly and get discarded
- The address verification system can verify information from thousands of address documents in multiple languages with great accuracy
- Due to the seamless API integration of address verification solutions, they can function in any browser with a secure connection. There is no need for any additional plug-in or fancy Kiosks for the installation
Bank Secrecy Act and USA Patriot Act
Financial institutes conduct KYC and AML checks on the prospect to oblige with Bank Secrecy and Patriot Acts, during that online address verification solution ensures that the prospect is not from a corrupted or prohibited place. On the basis of that, a specific risk rating is assigned to the client’s profile that helps in transaction monitoring.
If due to poor standards of documents verification, a wrong lead gets onboard and successfully carries out a financial crime, the institution would have to face trouble with regulators and their clients as well.
Use cases of an Address Verification Solution
Money Lending Platforms
Many innovative concepts have been turned into reality such as Yahoo and Google by the collaboration of the creators with the right connection. Venture Capitalists or lenders in this digital era are available on different money lending platforms, where people can meet their needs, short/long term goals, and establish their own business. The address verification confirms the location of the borrower with a combination of AI and human verification in no time, to validate his credentials, to avoid financial crimes or payment defaults.
E-commerce
In the initial authentication for customer onboarding, the address verification solution makes sure that the individual or representative of an organization is not from a region or a firm under FATF observation to prevent the institution/platform from financial scams.
Marketing and Research
Despite technological prowess, marketers still use tools of offline communications with their target market as it has not lost its potential. The address verification solutions enable the firm to identify the right eligible market segment and save the cost of offline marketing campaigns and classify the business plan a bit more.
Health Care
The address verification solution enables healthcare firms to protect the medical history of patients and also is mandatory in communicating with them, sending invoices, and much more
Conclusion
The AI-powered address verification solution has a global impact on banking, digital payments, healthcare, marketing, and many more. It enables organizations to validate one’s geographic location in real-time through OCR technology, to conduct risk-free business, and facilitate a large group of customers. There’s no substitute for it and must be deployed to and maintain compliance with GDPR and KYC/AML
