In case for businesses to grow, it is immensely important for them to have good customer relations. To have good customer relations, businesses must have verified customers. KYC protocols help the businesses to identify their customers and record all the important data related to them.
Most businesses just verify the identity of the customers only using their face or documentations. They tend to overlook address verification, which is a great way to verify not only the identity of the customers but their address as well.
In a time where the world has shifted to the means of online business and the e-commerce market is on the rise, address verification has become a necessity. Let us talk about the importance of address verification in this blog.
What is Address Verification Solution
It is a procedure of verifying the address of the customer through their identity documents. This process can take a very long time as collecting the address of every customer and verifying them can take hours. Manually handling such data can prove to be inaccurate as well.
However, a more ultimate solution for address verification exists that uses artificial intelligence. The customer has to just submit their government-issued identity documents along with their secondary document that contains their either work or home address. If they are opting for online address verification, they can even submit a picture of their documents for verification purposes.
The AI model first verifies the identity of the customer through document verification and then verifies the address of the person against the secondary document provided. If the address does not match, it could mean that the wrong person is trying to get access using someone else’s identity.
The secondary document could be
- Utility bills
- Bank statements
- Driver’s license
- Company registration
The government-issued identity documents can be
- Identity Card
- Driver’s license
This address verification solution is easier to manage and it is more accurate than the manual method of address verification.
Use Cases of Address Verification
Less Returned Shipments
Once the shipment is returned, businesses face a huge amount of loss. Especially in the food industry. This way the food is wasted as well and the company does not get paid for the order they sent.
Sometimes people order stuff online and then change their mind. Once the order arrives, they refuse to accept it. This way the company has to face the loss as well. Address Verification can solve this problem as well.
Better Customer Experience
The customer relation improves when the customer has a good experience with the business. Address verification can help to improve customer records. This way any mails or sale offers or even gift cards can get directed to the right address. Better communication means better customer relations
Meeting the Regulatory Demands
World regulatory like, FATF has laid out recommendations that all business organizations must verify the identity of their customers. This address verification can help to comply with this recommendation. Once they carry out the process of address verification, it also verifies the identity of the customer and helps the organizations with their KYC procedure. This solution is like hitting two birds with one stone.
All the financial institutions have to verify the address of the customer for a smooth monetary experience. Criminals use this to fake identities or steal identities to steal money from people. This is why it is necessary to verify their identity and their address to ensure their identity is legit and in case of an issue they can be contacted immediately.