Product Spotlight: Verify Physical Addresses with Documents

Authenticate and verify business addresses in seconds

At Parcha, we're constantly innovating to solve the most pressing challenges faced by fintechs and banks in their onboarding processes. Today, we're excited to spotlight a feature that’s recently caught more attention in our demos: Verify Physical Address with Documents.

This AI-powered solution is set to revolutionize how businesses authenticate and verify addresses for both companies and their owners during customer onboarding.

The Problem

Ensuring Legitimate Addresses for Businesses and Owners

Recently, there has been a significant increase in regulatory scrutiny on proof of address validation impacting U.S.-based fintechs and banks. This shift is driven by heightened concerns over anti-money laundering (AML) and know-your-customer (KYC) compliance, specifically the use of registered agents by foreign companies to skirt US Banking regulations.

The rise in regulatory attention can be attributed to several high-profile incidents where insufficient address verification contributed to financial crimes. As a result, both traditional banks and fintechs are now required to implement more robust address verification processes as part of their KYB (Know Your Business)onboarding.

As the landscape continues to evolve, U.S.-based financial institutions will need to stay vigilant and proactive in enhancing their compliance frameworks to avoid potential fines and reputational damage.

However, manually verifying multiple addresses can be time-consuming, error-prone, and vulnerable to fraud attempts. Many organizations struggle with:

• Authenticating the validity of submitted documents for businesses and individuals
• Ensuring addresses are physical locations, not P.O. Boxes or registered agents
• Cross-referencing self-attested information with provided documentation for both entities and owners

The Solution

AI-Powered Address Verification for Businesses and Owners

Parcha’s Verify Physical Address with Documents feature leverages cutting-edge AI to transform this process for both businesses and their owners. Here's how it works:

1. Document Scanning: Parcha scans the provided Proof of Address (POA) documents for both the business and owner(s) for signs of fraud or tampering.
2. Document Validation: Parcha verifies that the submitted documents are valid proofs of address (e.g., utility bills, bank statements, tax documents) for each entity.
3. Address Verification: The addresses on the documents are cross-referenced with the self-attested addresses and checked against Google Maps to ensure they're not P.O. Boxes.
4. Legitimacy Confirmation: Parcha's ensures that the provided addresses correspond to actual physical locations for both the business operations (or registered office) and the owner's residence.

Key Benefits

In addition to never having to off-board paying customers after the fact, Parcha’s Address Verification helps fintechs grow, with confidence.

1. Enhanced Accuracy: Minimize errors associated with manual address verification for multiple entities.
2. Fraud Prevention: Quickly identify potential fraudulent documents or addresses for businesses and owners.
3. Time Efficiency: Dramatically reduce the time spent on verifying multiple addresses.
4. Better Customer Experience: Streamline the onboarding process for legitimate businesses and their principals.

Customization and Integration

We understand that every fintech has unique needs. That's why we've made this feature highly customizable:

• Set specific document type preferences for businesses and individuals
• Customize verification criteria based on your risk tolerance for different entity types
• Define custom recency thresholds for address verification documents. As a default, Parcha accepts documents dated within the last 90 days.
• Integrate seamlessly with your existing onboarding flow through our robust API

Looking Ahead

Verifying Proof of Address Documents is just one of the many ways we're working to streamline the comprehensive business onboarding process. We're committed to continually innovating and providing solutions that drive real business impact for our clients.

At Parcha, we're not just building features; we're crafting solutions that accelerate your growth and enhance your operational efficiency. We can't wait to see how you'll use this to streamline your business and owner verification process and scale your operations.