Sumsub, a global KYC, KYB and AML compliance provider, offers a new feature to make address verification faster, safer and more user-friendly.
Sumsub, a tech company that helps businesses stay compliant and fight digital fraud, has recently added GPS-based verification to its Proof of Address solution. This new feature is primarily aimed at the fintech market, where companies are often obliged to verify user residence. By opting for GPS-based technology, rather than combing through physical documents, companies can verify addresses as quickly and conveniently as possible, keeping pass rates sky high.
Standard proof of address, or PoA, verification can be problematic. Traditionally, PoA is confirmed by submitting documents such as bank statements, utility bills, voter registration, mobile operator bills, and so on. Some of these documents have no security marking or photos, making them prime targets for forgery. Besides, many of these documents are non-standardized and may require additional checks, which leads to longer onboarding time and, consequently, lower pass rates.
Still, regulators in the crypto and trading sectors demand that businesses confirm user addresses. Failing to do so may result in huge regulatory fines or, worse yet, money laundering and other financial crimes going undetected.
So, how can companies keep user conversion high while staying fully compliant with regulations? Sumsub’s GPS-based PoA is the answer. With this new feature, businesses can create fast, simple, and secure address verification flows for global clients in accordance with all applicable regulatory requirements.
“First, the system asks the user for access to their geolocation to meet GDPR requirements. Then it detects the user’s location using GPS, Wi-Fi positioning, and Cell tower trilateration to provide the most accurate result,” – explains Peter Sever, Co-founder and Chief Strategy Officer at Sumsub. – “In case the user doesn’t want to share their location, or if their device doesn’t support GPS, it’s possible to continue on another device, or go through a traditional PoA verification process by uploading documents. Using geolocation for PoA verification dramatically increases conversion rates since this step can be passed in just a few clicks. It also speeds up the verification process as the solution automatically determines if the address falls within the excluded countries list.”
Importantly, IP-based geolocation may not be enough for compliance purposes. That’s why Sumsub prefers the device-based approach, which uses GPS geolocation data instead.
All in all, GPS-based address verification lets Sumsub customers perform PoA checks instantly, while keeping the option for document-based verification open. This creates an optimal user verification experience while keeping pass rates high.