Banks and other industries have developed identity and address verification technologies in response to chargebacks and other illicit practices.
When implemented, these technologies not only assure safe digital onboarding of the client but also lower the risk of illegal activity in the firm.
Address verification is used to validate address before a user makes any transaction.
This ensures that the customer is genuine and that all payments are completed safely.
Checking if a specific address exists is critical for proving the client’s legitimacy.
Here is how online address verification helps banks and other sectors.
1- Fraud Prevention
Fraudulent activities have become increasingly complex as technology has advanced. There is no institution that hasn’t been hacked by scammers, be it a bank or another financial sector.
Every business is now at risk, and they must take measures to be secure.
As a result, an address verification system can help these sectors in effectively verifying addresses, mitigating identity fraud, and managing reputational concerns.
2- Improves Customer Experience
The purchase is not considered complete until or unless the customer gets the items. Shipping errors and delayed delivery owing to invalid mailing addresses are among the worst things that can happen to a business as evident from Shufti Pro news.
This irritates customers to the point that they may begin to share their negative experiences with the firm on social media channels.
The firm’s reputation suffers as a result of this. So, verifying an address helps firms avoid errors that can sabotage their delivery service and ensures that the goods arrive at their intended location on time.
As a result, customer experience improves, increasing the likelihood of client retention.
3- Increases Delivery Speed
Online address verification confirms an individual’s correct address by establishing the actual location of a given entry.
This enables the delivery man to quickly and accurately locate the user’s address.
In some circumstances, the firm sending the parcel will amend an unauthorized address with typing mistakes, but the shipment will take longer, negatively impacting the client’s perception of the company’s products.
Validating an address standardizes it so that it corresponds to what the postal system is used to.
4- Saves Valuable Time
The team won’t have to waste time looking for strategies to verify address, redeliver goods, or reassess lead development and marketing tactics if they have an address verification system in place.
All of these activities necessitate a significant amount of work from the logistic and advertising agencies.
As a result, verification of an address saves a lot of time, allowing the organization to focus on other vital responsibilities.
5- Cost-Effective
Aside from minimizing the number of failed deliveries and saving workers’ precious time, address authentication means that product deliveries are more methodical and cost-effective.
Shipping a parcel to its intended destination in one go helps the corporation save money on fuel.
6- Reduces Returned Shipments
When a customer’s address is incorrect, there is a high risk of returned shipments, which can cost a company a lot of money.
According to the research, 30 percent of all online purchases are returned. Such returned shipments cost the firm a huge.
Thus, an address verification software might help to reduce the surge in the returned shipments.
For this objective, many platforms just started taking international inventions like Shufti Pro funding, just done by Updata partners.
7- Enhances Brand Reputation
Maintaining accurate information, such as a verified address, aids sales and support teams in providing relevant services to customers based on their needs.
Good service, like delivery and timely responses to client inquiries, not only improves customer satisfaction but also strengthens the firm’s image.
Customer satisfaction is essential for any organization because it enhances a company’s brand by generating a good impression of the platform.
8- Compliance with FATF Recommendations
To guarantee client security and preserve the firm’s integrity, the FATF advises that all organizations complete verification procedures including address verification.
Implementing address verification not just assists industries in verifying and validating a person’s address, but also guarantees that the organization complies with all KYC/AML rules and avoids heavy fines and penalties.
Final Thoughts
Address verification aids banks and other businesses in processing data more quickly.
A verified address list ensures that the firm and its customers stay linked, whether it’s for customer support, marketing initiatives, or other business processes.
As a result, putting in place online address verification is a solid alternative for all organizations to confirm consumer identities and protect their platforms from organized crime and complex fraud.