Why is Proof of Address Verification Necessary?

2. Today, frauds or crimes are rising continuously due to technology innovation; therefore, financial institutions or banks need to upgrade their systems. Most of the people prefer to handle the banking process in an online mode. No doubt, it made so many things easy but sometimes there are security concerns. Therefore, the system must be smart enough to handle the whole banking process. Nowadays the Video KYC trends are common. If you are opening a new online account in the bank, then video KYC is a perfect choice. Video-based KYC is recently introduced in the KYC (Know Your Customer) procedure. This method involves the video-based verification of a customer. In this process, the customer's KYC details are collected & then verified before the customer can start an account-based relationship with a particular financial institution like a bank or any financial service provider. This type of KYC verification procedure is the main part of Customer Due Diligence. It helps to keep you safe from money laundering, fraud, or criminal activities. Video KYC has taken a special place in the heart of many people as it stands out from other KYC verification protocols. The increasing trends of video-enabled features like audio-visual interactions, facial matching capabilities & the rise in the usage of AI technology helps to streamline & expedite the KYC verification process. When creating a new bank account, the banking representative must verify the identity of their customers. The customer has to must submit an identity document whenever asked to do by the banking representatives. Based on the video-based interaction, one has to share the banking representative's additional information. However, there are some situations when additional documentation is required, as proof of address. It is usually required when opening a new bank account or another money transfer-related account. With the help of the address proof, it will confirm that the address you have stated for the verification purposes is the residence address & it provides clear proof that the person belongs to a specific location.

3. Why are some companies need proof of address? To reduce the chances of the risk during the onboarding process, it is important to complete the Know Your Customer (KYC). Many financial institutions have already adopted the Video KYC process, but still there are some institutions who have not adopted it yet. If you want to minimize the risk of fraud, the financial institution must adopt a secure way of identity verification and use proof of address. Moreover, it is important to keep your address up to date & notify everyone about the changes in your residential address. There are several options for identity verification. But proof of address verification is one superior choice among all. With the introduction of the latest technology, you may create a better onboarding experience for your customers. By modifying the verification process, it helps to eliminate any attempts of fraud. Do you want to automate your banking operation? Choose Signzy as it offers you highly advanced software, which will surely make your onboarding process easy. Get the interactive digital onboarding systems by trusting Signzy. If you want to adopt the paper-free KYC verification, reach us today! Source: https://signzy.mystrikingly.com/blog/why-is-there-a-need-for-proof-of-address- verification