Do Banks Verify Utility Bills?

Before onboarding a new customer, proof of address verification is required. Utility bill verification from DIRO may provide real-time address verification by validating data from utility bills, bank statements, government documents, and more.

Because the data is obtained directly from the source, address verification with utility bills is the easiest and most secure method. Utility bills can be used to verify an address in accordance with KYC, KYB, and AML regulations. DIRO uses data from 9,000 utility companies in 195 countries to provide immediate address verification. By simplifying the onboarding process, DIRO improves the customer experience and lowers client drop-off rates.

Utility bill data, bank statements, government information, insurance documents, and driver’s licenses are all common ways to verify consumer proof of address.

The use of fraudulent and stolen documents is eliminated with DIRO’s proof of address verification technology. Banks, financial institutions, start-ups, fintech, and other regulated and non-regulated organizations can use DIRO’s online document verification system. With DIRO’s Open Banking API, you can now get real-time data from utility companies and feed it to your decision engine via machine-readable JSON files. For a better customer experience, gain easy access to reliable data.

What methods do banks use to verify your address?

Opening a new bank account, applying for a mortgage, or signing up for digital banking services all require proof of address verification. Here’s why it’s crucial to have proof of address verification:

Awareness how to show residency and why it is necessary begins with an understanding of the industries that will benefit from it. For organizations such as mortgage lenders, eCommerce retailers, online marketplaces, and online gaming, efficiently confirming clients’ addresses ensures that the customers are who they claim to be.

Other businesses, in addition to finance, demand evidence of address verification. Address verification is also used by online sites that book living spaces, such as Airbnb. Since the outbreak, the amount of bogus bookings on Airbnb has increased. As a result, a number of clients have been duped out of their homes. Due to Airbnb’s inability to verify proof of residence, scammers might offer any house for rent and deceive clients when they try to sign up.

The online rental industry, such as Airbnb, isn’t the only one that asks proof of address. Residence verification is often used by mortgage lenders to ensure that a consumer is who they say they are. Borrowers must furnish specific documentation to lenders for verification in order to reduce mortgage fraud.

As previously said, banks, financial institutions, and FinTechs must verify a large number of papers in order to protect themselves from fraud.

Fraud causes substantial costs to a country’s economy, therefore policies must be followed to reduce fraud. To comply with requirements such as KYC, KYB, AML, and mortgage lending restrictions, you can add verification methods. Following regulations will help you weed out security dangers, reduce risks, avoid legal liabilities, and continue to provide the best possible user experience to your customers.

A basic need for KYC/KYB and AML compliance is the verification of proof of domicile. Although certain locations are stricter than others when it comes to address verification. Where online gambling is legal in the United States, robust proof of address verification is required. Customers and online gaming providers who fail to complete the verification of address proof risk receiving significant fines.

What Documents Count As Proof of Address?

Several documents can be used to verify proof of address in the United States; below is a list of the most regularly used documents:

A driver’s license is a government-issued identification card that authorizes a person to drive a vehicle. A license provides a person’s name, address, and date of birth in addition to their driving record. It’s possible that the address stated on the driver’s license isn’t the current address.

According to polls, more than 30 million people in the United States relocate each year. Every state requires you to update your address evidence within 30 days of moving, according to laws. However, most people neglect this criterion, resulting in inaccurate and out-of-date information.

By doctoring the driver’s license with various technology, fraudsters can easily fool the verification processes. Data such as proof of address is captured directly from the original web source for verification by sophisticated verification technologies like DIRO’s online document verification. This means that even if documents are false, institutions can validate them.

Another government-issued ID that is used for foreign travel is a passport. It also aids in the certification and verification of each individual’s nationality. Passports, unlike driver’s licenses, do not have addresses printed on them, but the user can pencil in the address themself. This isn’t a substitute for formal proof of address for government services, although it can be useful in some situations.

A bank statement is a monthly document that the bank sends to each of its customers. The statement contains all types of financial information, such as how much money came in and how much money left. This bank statement can be used to prove your address. Personal information such as name, address, and statement period can be found on bank statements.

Bank statements must be recent or less than 90 days old to be used as proof of address. A bank statement older than three months cannot be used to show the customer’s current residence. Although utilizing bank data to verify an address has a number of security concerns.

It is critical for banks, governments, and financial institutions to learn how to verify proof of address in order to give clients with a sense of security. According to sources, requiring customers to provide bank statements as evidence of address resulted in a 30% increase in customer dropout. Customers are afraid to furnish bank statements because they include sensitive information.

Utility bills are the most reliable way to verify verification of address. The procedure of using power bills for DMV and driver’s license renewal was recently introduced. The entire procedure is now digital.

Utility bills are the most secure and flawless use case of address verification in terms of security and process. Utility bills reveal a customer’s most recent address. People may neglect to update their address on their driver’s license, yet paying utility bills suffices as proof of current residence.

How to Verify Proof of Address with DIRO?

Proof of address verification is critical for digital transformation and fraud prevention. DIRO’s verification technology extracts information from the original web source and checks whether or not an address is valid.

DIRO’s technology is the only one in the world that can instantaneously check papers, resulting in a better client experience. The solution can be used in a variety of sectors on a horizontal level.

What utility invoices are accepted by banks?

Proof of address is exactly what it sounds like: it’s evidence that you live where you say you do. It’ll usually come in the shape of a document from a trustworthy provider that was recently sent to your home address, demonstrating that it’s the one you use.

As a security measure, banks and other institutions frequently request confirmation of residency. It allows them to verify that you are who you say you are and where you live. It could also be used to prove that you live in the United States, or in a certain state. That’s a significant concern at the DMV, for example.

Proof of address and proof of identification are not the same thing (ID). Your passport, for example, does not include your address, therefore it is proof of identification but not of address.

You may be asked to present proof of identification as well as proof of address. You may also be asked to provide two separate forms of evidence of address.

Many banks and other institutions maintain a list of which documents qualify as proof of address. The following are some examples:

An authentic letter from your job or school confirming your current address.

Keep in mind that this is just a sampling of possibilities. Varied groups will have different rules: some will take only the items specified above, while others may accept items not on the list. Look out for arbitrary-sounding limitations, such as accepting just certain types of insurance paperwork or not accepting utility invoices that include mobile phone bills.

The age of these documents is likewise governed by different rules. They could need to be less than a year old or less than three months old, for example. And depending on the type of document, these rules may vary.

What is the purpose of bill verification?

Because it plainly indicates a person’s legal name, an electrical bill verification is confirmation of their identity. As a result, any business may be certain that their consumer is who they say they are and not an identity thief. The address of your home.

What is proof of residence?

To confirm proof of address, each bank will have its own set of documents and standards.

Before applying for a bank account, double-check with your local branch to ensure you have the proper documentation.

When a bank states they accept utility bills as evidence of address, they may have specific requirements for which kind of utility bills are acceptable.

Is it true that banks check evidence of address?

When it comes to the best proof of address to use and what they consider as acceptable, different banks have varying policies. This applies not only to the document type, but also to whether or not the original copy is required. Some banks will accept photocopies of your legitimate ID, while others will require the original.

While each bank is unique in this sense, there are some evident parallels in terms of the types of proof of address that are acceptable.

Here are the answers to some of the most often requested proof of address questions to help you better grasp what they are:

  • Is a bank statement acceptable as verification of address? If the bank statement is recent, most banks will accept it as proof of address. Three months is the standard time frame for relevance. Banks, credit unions, and building societies are the most common recipients of statements. Credit card statements, as long as they’re recent, are also considered a viable choice.
  • Is it possible to use a pay stub as proof of address? Some banks will accept your payslip as proof of address if it contains your current address. However, you’ll almost certainly need to augment this with a passport or other kind of identification verification.
  • I don’t have any bills, therefore how can I get evidence of address? Obtaining invoices as proof of address can be difficult if you’re new to the nation. Most banks are aware of this and will allow you to submit a proof of address letter to verify your identification. Accepted letters can come from anyone who can legally vouch for you, such as your university, job, or another bank customer.

Which Documents Count as Proof of Address in the UK?

Most banks in the United Kingdom employ the following proof of address examples:

Keep in mind that each bank has its own set of regulations. Find out what they demand to keep you and your money safe by speaking with them.

What is the procedure for obtaining a utility bill proof of address?

With their application form, all applicants must submit the following evidence of address:

  • child benefit (pages 1& 2)/child tax credit/housing benefit/income support/jobseekers allowance/universal credit entitlement letter
  • a letter from Social Services/National Asylum Support Service/UK Visas and Immigration/Housing Department verifying placement at your address

Is it possible to open a bank account without providing evidence of address?

Opening a UK bank account is one of the first things on your must-do list if you have recently arrived in the UK, recently moved to the UK, or are still new to the country.

Some financial organizations will open an account without requiring confirmation of residency. While neo-banks and a few traditional banks may not require proof of address, you will still need to provide an address for the bank to mail your documentation and cards.

The bank’s principal goal in asking proof of residence is to assure security and confirm your identification. Various methods of identification can be used to do this:

  • Foreign nationals working in the UK on a temporary basis can show their national passport.
  • Nationals of the European Economic Area (EEA) or the European Union (EU) can show their national identity card or a Home Office-issued residency permit.
  • In order to study in the UK, international students must present their national passport, a letter of acceptance, or a letter of introduction from the institution where they would be studying.
  • Nationals of the European Economic Area (EEA) or the European Union (EU) can present either their national identity card or a residency permit provided by the Home Office.
  • Utility bills issued in the last three months, such as electric, internet, water, or gas bills
  • Statement or passbook from a Building Society or Credit Union issued during the last three months Statement of the mortgage
  • Rent card or tenancy agreement for the current year from the council or housing association
  • NHS medical card or letter of confirmation of registration with the surgery from the GP’s practice

The following documents, according to the Financial Conduct Authority (FCA), can be used as proof of residency:

  • a letter from a care home manager or a sheltered housing or refuge warden
  • a letter from a homeless shelter’s warden a probation officer’s or hostel manager’s letter
  • If you are a traveller, you will receive a letter from a prison governor. If you are an international student, you will need a letter from the local authority confirming your address.
  • a passport or European Economic Area National Identity Card, as well as a letter of acceptance or introduction from a body on the Department of Education’s list of approved organizations

Without proof of residency, you have three alternatives for opening a bank account in the United Kingdom:

  • Offline – You can open a basic bank account at most banks. Furthermore, some banks permit the opening of current accounts without the requirement of providing confirmation of residency. HSBC, Lloyds, RBS, Barclays, NatWest, and Santander are some of the UK’s biggest banks. Depending on the bank and branch location, different requirements may apply.
  • Online Banks – You can open an account online instead of physically visiting a bank and its branch. Most banks, on the other hand, require that you be physically present.
  • NeoBanks – These digital-only banks will open an account for you in the United Kingdom without requiring proof of residency. Monese, Revolut, and N26 are some of the most popular Neobanks.

Is it possible to use a bank statement as proof of income?

Obtaining supporting documentation for use with pay stubs to verify a tenant’s income is as simple as asking for the applicant’s two most recent monthly bank statements. If an applicant is self-employed, statements can also be used as a secondary source of income. Landlords should gather tax returns as primary documentation if this is the case.

For validating tenant income, bank statements offer various advantages, including the ability to view a renter’s whole banking history and examine their cash reserves. Look for rejected checks, overdraft penalties, and a history of missed payments. A bank statement will almost always be used as a secondary source of proof of income.

How to Get Applicants’ Bank Statements

Bank statements are an excellent way to learn about an applicant’s finances, but you must obtain them from the tenant in order to examine them. Asking the application to submit a PDF of their most recent statement, which should contain itemized transaction history, including deposits and withdrawals, is the simplest way for the landlord to obtain them.

How to Verify Income Using Bank Statements

The landlord should request the applicant’s bank statements for the last two months. The bank’s name, the applicant’s name and address, and the statement date are all visible in this case. You can also check the total amount of deposits and withdrawals. If the applicant submitted a primary proof of income document, double-check that the income matches the bank deposits.

  • Name and address of the applicant, which must match the name and address on their rental application.

Pros & Cons of Accepting Bank Statements

A bank statement will almost always be used as a secondary source of proof of income. If your application is self-employed, though, this document may end up being your primary source of income verification, which isn’t ideal.

Is it possible to use an electricity bill as proof of address for an Aadhar card?

For both Indian residents and non-resident Indians, the method for obtaining an Aadhaar card is the same. Non-Resident Indians can apply for an Aadhaar card by visiting the UIDAI website and searching for a UIDAI authorized enrolment center near their home. After deciding on an enrolment center, the NRI can walk straight to an authorized Aadhaar enrolment center with confirmation of identity and other required documents. After all of the documents have been submitted, the individual will be asked to give biometric data. Non-Resident Indians who want to apply for Aadhaar must have a few essential documents with them when they go to the enrolment center. The UIDAI accepts the following documents for this purpose:

  • PAN card, Ration card, Passport, Voter ID, Driving license, government/PSU photo ID, etc. are all acceptable forms of identification.
  • Voter ID, passport, ration card, driver’s license, government/PSU photo ID, gas connection bill, electricity bill, water bill, landline bill, bank passbook, credit card statement, and so on.
  • Birth certificate, passport, PAN card, government/PSU photo ID, etc. are all acceptable forms of proof of date of birth.

Is it possible to use an online bank statement as proof of residence?

If the company refuses to accept a printed Online Statement, you can ask for a paper statement to be mailed to your house. Call 0345 734 5345* if you’ve registered for Telephone Banking. Alternatively, you might go to a branch.

*We may monitor and record phone calls in order to provide a high-quality service. Charges for phone calls.