Businesses should never undermine the importance of utility bill verification. Electricity bill verification is the first and foremost step in an exhaustive identity verification process. Especially for businesses dealing with financial data. The threat of identity theft is ever prevalent in the industry, and the only way to keep customers and businesses safe is with the verification of customer documents. Utility bill verification is directly related to identity verification and it should be handled with utmost care.
Businesses of today now have to comply with tons of rules that ensure safety and security for all. When businesses comply with these rules, they prevent fraudsters’ access to a firm’s internal systems. To make sure customers are who they claim to be, a valid ID and address proof are needed. Water or electricity bill verification can easily fulfill the demand for proof of address verification.
Facilitating Identity Verification Through Utility Bills
Even in developed countries, how to handle financial information easily is scarce knowledge. A huge number of people living in rural areas don’t have access to important financial institutions such as banks and FinTech services.
Before a customer signs up with a bank or a financial institution, they need to perform a series of checks. Formally, these checks are known as Know Your Customer Verification (KYC). As most people don’t have access to the right set of documents, they end up being rejected by the banks. Most banks and financial institutions ask for two documents before onboarding a customer:
- Government-issued ID document
- Proof of address document
There are rare cases where businesses require additional documents to verify a customer’s identity. In those cases, the business has its own set of rules and regulations that a customer needs to follow.
In most cases, banks need only two documents. In 80% of areas, utility bill verification is the most logical step for proof of address verification. Electricity bill authentication does so much more than provide access to a customer’s address data, it also helps businesses in understanding a customer’s paying habits and behaviors. As most people have access to an electricity bill, it’s the most convenient way to verify their address proof. This is why more businesses should focus to verify electricity bill.
Besides, businesses can use electricity bills to prevent risks, and it also helps in strengthening relationships with customers. This shows customers that a company cares about providing a certain degree of security to the customer’s personal information. With increasing pressure and complicated compliance from regulatory bodies, businesses need to build compliance solutions that are as secure as possible. Online electricity bill verification provides essential help for businesses and customers.
Methodology for Electricity Bill Verification
While using electricity bills for verifying a customer’s residency sounds easy, it requires a lot of effort. Instead of relying on manual resources for the verification of customer data, businesses should choose technologies. DIRO electricity bill verification API can enhance your verification process. Here are some of the basic things that a business can verify using an electricity bill.
1. Identity Verification
An electricity bill can also be used to prove a person’s identity as it mentions their legal name. So, businesses of every type can be sure that the customers are who they claim to be, and not someone who stole ID documents.
2. Residential Address
An electricity bill is the best way to verify a customer’s address data. A utility bill is a primary source of verifying a customer’s residency. Businesses can use utility bill verification to gain insights about the customer and prevent fraudsters from accessing a business’s services. Plus, in case of fraud, businesses can track down the fraudster and safeguard themselves from any penalties by showing the needed data.
3. Payment History and Habits
Another benefit of using an electricity bill for customer verification is to gather a customer’s attitude towards their payments and habits. If a customer has tons of due utility bill payments, it shows that a customer doesn’t handle their finances well. So, businesses, especially those offering loans and credit cards should use utility bill verification.