Pros of using Identance for an address verification and client onboarding
The Identance solution can even fill half of the fields on a document for the user. Thanks to its API, the verification system can be easily integrated and start working in a matter of minutes. This is especially important if we're talking about big international companies.
All the products, developed by Identance are:
- Suitable for any type of devices;
- Flexible and transformable;
- Easily customizable and altered;
- Implemented under white-label contracts;
- KYC and AML compilable;
- Supporting every kind of verification.
Identance has access to foreign document templates and postal address verification data. Therefore, the platform provides business solutions for every type of verification purposes, whether you need just one or a mix of them. The integration of such a tool in a business platform will make it able to quickly verify and onboard new clients. So, the advanced address verification system is a must.
Overall, modern operations often require a company or an individual checking the official documents. Nowadays, we’re living online. Sadly, fraudulent parties were migrated on the Internet, as well. Now the fraudsters can use fake proof of business address or alter the documents of real people for their own gain. Impersonating people is just one of the problems, the other ones include stealing of personal information, theft of funds, etc. Nowadays, human effort is not enough to fight the fraud effectively.
Therefore, special computer algorithms, AI technologies, and machine learning are now the ones responsible for catching the fakes. The first reason for the effectiveness of the international address verification options and other means of computerized data check is that even the smartest people can't process big amounts of data quickly and without mistakes. Second – is the ongoing machine learning process, which keeps track of old methods of fraudulence, as analyzing them gives the best results in fighting the new ones.
Address verification is a type of document verification. Only instead of checking the IDs, issued by the government, the system carries out a sophisticated address verification, using data, indicated on documents like letters, utility bills, etc. It can be used for general verification purposes to establish the identity. However, the best application for the address verification software is for securing financial transactions carried out using the credit card.
Initially designed by MasterCard, this kind of verification is now being widely used by other businesses and financial companies. It's one of the methods of fraud-prevention during the identification of a cardholder. The greater share of the use is dedicated to online banking transactions or transactions where the card is not present.
In this case, the address verification tool compares the billing address provided by the client in the process of the transaction with the address, provided by him/her earlier which is kept in the bank's records. The merchant sends a request to a processor of the card, which later responds with the “verdict” of matching or non-matching addresses.
However, this is just one case of the use of the address verification. Its technology gives a lot more options and purposes of use.
There are different situations where the customer might have to prove different addresses. Depending on the purpose of verification it could be a residential address, business address, or an international address. Usually, the list of documents for an address verification includes bank statements, utility bills, postal letters, etc.
To give the proof, the customer is asked to submit the list of recent documents, which means they need to be issued or received over the period of the last 2-3 months, depending on the situation. Sometimes, the documents should reflect both business and residential addresses. Usually, the list includes:
- Utility bills for water, electricity, TV services, etc.;
- Bank or financial statements;
- A copy of an agreement of lease, signed by both the owner and the occupant;
- Taxes invoice or a paycheck;
- A mortgage statement (could be more than 3 months old);
- Letters of official correspondence with some authorities;
- Valid insurance documentation (whether personal or business), etc.
Most of the platforms don't accept one-time bills like invoices from the doctor's office or payments for other house services. The idea behind it is to present a document that proves continuous living or working on the same address.
One specific thing we should talk about in the end is the address verification API. Remember, we mentioned the AI-based solutions earlier? API is much simpler but also can deliver great results. In a nutshell, this approach lets machines connect to other solutions and services. Thus, they can exchange data automatically, without manual interference. As a result, powerful API-connected solutions can run address checks much faster, compare different databases, and verify identity.
At the end of the day, it’s important to remember that address verifications remain essential parts of KYC/AML procedures. Often, you face them during financial operations in banks or modern trading platforms. The nature of our centralized world requires people to pass various verifications, and the address one remains crucial for money-related operations. The same is true for businesses that can protect from frauds and other issues using modern verification solutions.