CPV the full form used in banking is known as Contact Point Verification.
Physical verification is a method that validates and confirms the authenticity of the customer’s name as well as address and contact information supplied by him through the physical visit to his home address. Banks perform this prior to offering any service in order to make sure the details provided by applicants regarding his identity and address is accurate trustworthy and impartial.
The phone number and the E-Mail IDs can be verified internally by Banks. However, for verification of address, Banks generally outsource some external organization to carry out the CPV. In order to verify the address of an applicant, these agencies visit physical locations to verify address of applicants. They also employ custom-designed tools and Android-based apps to monitor the activities of their field executives and, in turn, provide live reports to customers.
Importance of CPV
- Criminals can submit a an incorrect address and conceal their real address. Therefore, it is essential to go to the address in order to verify the authenticity of the address.
- It is important to send reminders and following up in the event that a payment is not made on time
- If a loan turns NPA in the event of default, legal and demand notices have to be delivered to the the residence of the defaulter
Challenges in CPV
- If the facility leases, rents or shared between multiple businesses
- CPV is not able to promise foolproof outcomes every time. The applicant may prove to be a fraud.
It is crucial to get the permission of the applicant prior to any type of verification. Without their permission, it’s not appropriate to confirm any information supplied by them.
