Home » Online Address Verification Services In Banks and Finance Industry Via Utility Data

Online Address Verification Services In Banks and Finance Industry Via Utility Data

by D F

Why is client address verification so crucial, and how can banks do it quickly and swiftly with real-time utility data? This fully electronic digital process now provides the most latest source for address confirmation, and it is the pathway to which consumers and companies are most willing to grant full rights for KYC and KYB purposes. According to Shufti Pro news, 19% of the failed deliveries happen because users provide incorrect address verification.

What’s the Problem?     

Synthetic ID theft is the most common type of ID fraud, in which a scam artist creates a new identity by combining accurate and inaccurate data, which is one of the primary motivations why verification of address is so crucial. 

Aside from this problem, using proof of address as an identity authentication method ensures that the company complies with policies and measures such as AML5 and is protected from otherwise unavoidable threats.

Why Do Banks Need Address Verification?

To keep potential risks at bay. The banking sector and other businesses like, e-commerce industries, online sellers, and internet gaming and betting sites can be confident in their consumers’ identities by verifying their addresses. According to Shufti Pro funding, 1.6 trillion USD is lost on bad customer service. 


Airbnb is a prime illustration. They’ve seen an increase in fictitious hosts in the last year, which has resulted in customers being scammed. Airbnb had not correctly authenticated that the hosts resided where they said they did, allowing hosts to list a fantastic estate on a more attractive road as their own, only to unveil an unsatisfactory estate at a different location when guests arrived.

Address verification system is also required for high-value money transfers in banking and e-commerce, to ensure that costly purchases such as high tech equipment or even a vehicle are delivered to a proven and accurate address. If a bad actor has the ability to purchase something costly online and send it to a separate address using looted card information, they will.

Follow the Regulatory Requirements

They put an end to fraud. Banks greatly lessen the danger and threat of fraud to their business if they obey KYC, KYB, and AML regulatory requirements. Banks can also minimise the amount of theft, avoid legal problems, and broaden their customer base with confidence if they use strong identity verification techniques. 

In most regions, proof of address is a necessity for KYC, KYB, and AML regulations. There are a few exceptions, such as Hong Kong, which does not necessitate proof of address since occupants frequently change addresses and their important records are easily conjured. In the meantime, proof of address is required in locations where online gambling is acceptable, such as Europe, the United States, or elsewhere.

Address Verification Through Utility Data

The following are the most common types of documents used to verify an address:

1. Driving Licence 

Driver’s licenses are widely used when verifying an address. The name, address, and birth date are all listed on a driver’s licence. Moreover, it’s possible that the addresses aren’t up to date. Many individuals who had a driver’s licence granted years back and have since relocated have either forgotten or refused to modify their address. Another concern is that they are simple to forge worldwide, with multitudes of bogus licence numbers in use presently.

2. Passport

Passports usually include addresses, some of which can be expired as well, with many clients residing at a new address than what is listed on their passport, which was issued nearly ten years ago. Furthermore, on some passports, the existing address is not published but rather left blank for the user to fill in.

3. Bank Statement 

Because it demonstrates the name, address, and date, the latest bank statement can be used to validate addresses. The statement can be utilized as proof of address if it is current. Clients, on the other hand, are concerned about security. When enquired about using transaction and onboarding facilities in the financial sector in Europe, nearly 40% of clients declined. They plainly do not want to divulge such confidential material.

4. Utility Bill

Utility bills have long been utilized for verifying addresses, such as when applying for a government-issued ID. However, the procedure is now being transformed into a digital one. This is the most recent data component for online address verification in aspects of timeliness. Utility bills reveal a customer’s latest address. While individuals may not refresh the address on their driver’s licence or passport, they are inclined to continue making a payment for a location they no longer live on a monthly basis.


It’s a robust approach that outperforms conventional checks, using digital onboarding to reduce the duration from days to hours and increasing onboarding performance.

Future of Online Address Verification In Banking

Online Address Verification has emerged to be a strong tool in the KYC process as it ensures positive customer onboarding, eliminates risk and detects fraud. The banking sectors all over the world are turning towards online address verification services, it has become a crucial part of their AML and KYC regulations. 

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