What are the often overlooked challenges of "address data quality" for financial institutions? Address DX supports customer management, collateral valuation, and disaster response.

GeoTechnologies, Inc. map company, receives inquiries about address data from various industries. The financial industry, in particular, frequently raises concerns about managing and utilizing address data, including duplicate customer information due to variations in spelling, outdated information, and the inability to accurately display customer information on maps. Here are some of the most common challenges.

① Address formatting is not standardized, resulting in inconsistencies in notation, and the same address is treated as separate data.

In Japan, the same address can be written as "1-2-3" instead of "1-chome 2-ban 3-go". This variation in address notation is called address inconsistency. This inconsistency arises from two characteristics of the Japanese language: its complexity and ambiguity.

Japanese can be expressed using a variety of characters, including kanji, hiragana, katakana, as well as Arabic numerals (1, 2, 3) and Chinese numerals (一, 二, 三). Furthermore, because different spellings like "の" and "ノ," or "ケ" and "ヶ," can be understood as having the same meaning, a single address can be written in multiple ways.

For example, "1-chome 2-ban 3-go" can be written in various ways depending on the way the address is written, such as "1-chome 2-ban 3-go," "1-2-3," or "1-banchi 2-ban 3-go." Furthermore, the mixing of numbers and Chinese numerals, the use of "no" and "no," "ke" and "ga," the use of hiragana, katakana, and kanji, and the use of old and new characters are all factors that create variations in address notation.

Even if a human can see that two addresses are the same, a computer will recognize them as different addresses if the strings don't match. Therefore, the same address may be registered and managed as separate data.

Such inconsistencies in address notation can lead to problems such as duplicate registrations of the same customer, reduced accuracy in name matching, misdelivery or non-delivery of direct mail, and decreased accuracy in analysis using address data. Furthermore, it may hinder accurate display on maps, impeding property management, sales activities, and damage assessment during disasters.

Thus, inconsistencies in address notation are not merely differences in spelling, but have become a significant issue that affects operational efficiency, customer service quality, and the accuracy of data utilization.
If you are interested in the address formatting correction service offered by GeoTechnologies, Inc. please see this document.

② Address data alone cannot accurately pinpoint a location.

We frequently receive inquiries from the financial industry requesting the ability to manage properties used as collateral for loans, including their locations, the addresses of contract holders, accident sites that need to be verified for property insurance, and properties covered by fire insurance, etc., by displaying them on a map. Among these inquiries, many ask if there is a way to address the fact that while they have the address data for the properties they want to manage, they cannot accurately display it on a map using only that data, nor can they perform area analysis or cross-reference it with disaster-stricken areas.

To accurately display addresses on a map, latitude and longitude must be linked to the address data. However, it may not be possible to assign correct latitude and longitude to address data lists that include old addresses from before municipal mergers or variations in spelling.

Therefore, it is crucial to first convert the address data list to the latest and most standardized format, and then link it with latitude and longitude. Following these steps will assign latitude and longitude, resulting in an address data list with a standardized format. This will enable accurate display on maps, as well as highly accurate location-based operations such as area analysis and understanding the extent of impact during disasters.

If you are interested in a service that adds latitude and longitude to address data lists, please see this document.

By improving the quality of address data and linking it with accurate location information, it can be used in a variety of financial institution operations. Here, we introduce examples of how address data is used in the financial industry, such as registering customer information, managing collateral, and assessing damage in the event of a disaster.

Case Study 1
Displaying the correct address during customer information registration (such as when opening an account or applying for a contract) and offering it as a selection option will improve address quality.

To improve the quality of address data, it is crucial to collect accurate addresses during the customer information registration stage.

If you allow free-form address input, there is a possibility of various inconsistencies in address notation and input errors, such as differences in street number notation like "1-1," "1 no 1," or "Ichome Ichiban," as well as differences in the use of kanji, katakana, and hiragana.

Therefore, by introducing a selection-based input form that utilizes address data, the quality of address data can be significantly improved. For example, selecting a prefecture will display the corresponding city or town, and selecting a city or town will display suggested town names and street numbers, displaying options based on actual address data in sequence.
Users only need to select the correct address from the displayed options, thus preventing input errors and variations in spelling, and allowing for the collection of consistent addresses.

By utilizing address data to collect accurate addresses from the time of input, it is possible to prevent input errors, improve the accuracy of data matching, and enhance the quality of the customer database. As a result, various subsequent tasks can be performed more accurately and efficiently, such as improving the accuracy of direct mailings and various notifications, preventing duplicate registrations of customer information, and improving the accuracy of map display and data analysis.

If you are interested in methods for collecting addresses by having users select the correct address during registration, please contact us here.

Case Study ②
Adding latitude and longitude to address data enhances the management of collateral properties.

By normalizing the address list of collateral properties to the latest and most consistent notation, adding latitude and longitude coordinates, and creating an address list that can be visualized on a map, advanced property management becomes possible.

Address normalization is the process of converting inconsistencies in address data, such as outdated addresses, into up-to-date addresses that are standardized according to certain rules.

For example, it automatically converts differences in address notation such as "1-2-3," "1-chome 2-ban 3-go," and "1-banchi 2-ban 3-go," as well as old addresses from before municipal mergers, into a unified address format. This ensures consistency in address data and prevents duplicate entries and search omissions.

Furthermore, by converting and normalizing address data into a standardized address format, it becomes possible to link the correct latitude and longitude to each address. The addition of latitude and longitude allows for accurate display of addresses on maps, enabling highly accurate location-based operations such as property management, market area analysis, surrounding environment analysis, and area risk analysis.

While AI is expected to play a role in addressing inconsistencies in address notation, GeoTechnologies, Inc. already provides a highly accurate address normalization service using a nationwide Address map databases.

For more information on the criteria used to correctly correct addresses and details about GeoTechnologies, Inc.' address data, please refer to this document.

■ Used in calculating collateral asset risk (primarily physical risks such as wind and flood damage) in the TCFD (Task Force on Climate-related Financial Disclosures).

This data is used to estimate damage amounts and collateral value impairment rates based on climate scenarios by combining location data of the target property with hazard maps, and to calculate the final credit costs (such as increases in provisions).

For more information about our address geocoding service, which visualizes address data usable for calculating collateral asset risk under TCFD, including its features, overview, and fees, please contact us here.

■ Managing affected properties and gathering information on damage during a disaster.

By managing their fire-insured properties on a map, companies can use this information to understand how many insured properties are located in affected areas during earthquakes, floods, landslides, and other disasters, and to quickly assess the extent of the damage.

If you are interested in our service that visualizes address data on a map, which can be used to determine how many affected properties are located in disaster-stricken areas, please contact us here.

Case Study ③
Reduce the number of returned direct mail pieces with incorrect addresses.

Address normalization, which converts address data lists into correct addresses, is being used to improve the delivery rate of mail sent for direct marketing and contract confirmation, as well as to reduce delivery costs.

GeoTechnologies, Inc. offers address verification services that leverage its industry-leading database of 47 million addresses and its expertise in Japan's unique and complex address structure. Through "address normalization (address cleansing)," which unifies inconsistent address notations and outdated addresses, and "geocoding," which adds latitude and longitude to addresses, we support improved address data quality and its use in a wide range of business applications. Here, we will introduce each service in detail.

① Address normalization (address cleansing)

Address data containing variations in spelling, input errors, or old addresses can reduce the accuracy of searches, name matching, and map displays.

The address normalization service analyzes address lists, automatically correcting variations in spelling and input errors, and standardizing them to the latest address format. For example, it can convert "Ushimiyacho 4-1" to "Ushinomiyacho 4-1," correct "Gushikawa City" to "Uruma City," and convert old addresses from before municipal mergers to current addresses. It also supports variations in characters, differences in okurigana (suffixes), and addresses containing street names unique to Kyoto City.

Cleansing/Maintaining Address Lists

- Resolve inconsistencies and errors in the address list (normalization process) and standardize the address format.
- Update old address to new address
- Batch processing is possible using cloud services or Excel.
- Batch processing is possible using both API and Excel.
- The processed address string and other information can be saved to the database.

By normalizing addresses in this way, not only is the quality of address data improved, but the data can also be used with high accuracy in various subsequent tasks, such as improving the accuracy of name matching, preventing errors in direct mailings, accurate display on maps, and assigning latitude and longitude.
If you'd like to try a free trial of address normalization (address cleansing), please apply here.

② Geocoding service (latitude and longitude assignment service)

Geocoding is a technique that assigns latitude and longitude (location information) to a normalized address to pinpoint its exact location on a map.

First, address data is normalized to unify inconsistencies and outdated addresses to the most recent ones, and then highly accurate latitude and longitude coordinates are assigned down to the building and house number level. This allows addresses to be displayed precisely on a map.

Assign latitude and longitude to normalized addresses.
- After normalizing the address, assign latitude and longitude at the house number level.
- Check the accuracy of the entered address by verifying the analysis level.
- Process addresses one by one, or process address lists in bulk.
- Address lists can be processed using Excel without any development work.
- Address lists can be processed using APIs/Excel without the need for additional development.

By assigning latitude and longitude to addresses, various location-based tasks can be performed with high accuracy, such as displaying maps of collateral properties and contract holder locations, conducting market area analysis, matching with disaster-stricken areas during emergencies, and visualizing sales areas.
If you'd like to try a free trial of our geocoding service (latitude and longitude mapping service), please sign up here.

To effectively utilize address normalization and geocoding in actual business operations, it's crucial to choose the appropriate delivery method based on the purpose of use, the amount of data to be processed, and how to integrate with existing systems. GeoTechnologies, Inc. offers address verification services through three methods: API integration, data storage for processing, and Excel. Here, we introduce the features and suitable use cases for each method.

① Provided via API integration

The address verification result is retrieved instantly via the Web API.

<Overview>
- It is possible to process each address individually.
- Assign a postal code
- Supports batch processing of up to 50 requests per second.

<Recommended for people like this>
・Those who wish to integrate their system with our API via the web
・Those who plan to use cleansing treatments regularly
・For those who want to process address lists in bulk in a short amount of time.
・For those who want to normalize their address each time they enter it to improve accuracy during input.

If you are interested in a free trial of our address verification service API integration, please apply here.

② Provided by professionals who entrust their data to GeoTechnologies, Inc.

We will receive your address list and process it according to your individual requests and the condition of the data.

<Overview>
- We perform the same processing as cloud services.
We will determine the validity of the address list you provided and return the processing results.
Please feel free to contact us with any detailed concerns that cannot be covered by the Web API, such as assigning building names and address codes, or normalizing katakana addresses.

<Recommended for people like this>
- Those who use the service irregularly
・For security reasons, we prefer to use the service by transferring the list rather than via the web.

If you are interested in our professional address verification service, where you can entrust your data to us, please contact us here.

③ Excel

This system allows you to easily review and process address lists in Excel without requiring any system development.

<Overview>
- Process address lists without development
- View all Excel address lists at once with a single button click.

<Recommended for people like this>
Those who manage lists in Excel
- Those who do not need to install it in the system
・Those who plan to use cleansing treatments regularly
・For those who want to process address lists in bulk in a short amount of time.

If you are interested in our address verification service using Excel, please contact us here.

This time, we discussed the challenges of address data lists in financial institutions, the importance of collecting and managing accurate address information, address normalization to convert addresses to correct ones, and methods and benefits of using geocoding to add latitude and longitude to address data lists.

Addresses are not something that can be registered once and used indefinitely; they are constantly changing due to municipal mergers, transitions to designated cities, land readjustment, and changes in street address systems. Furthermore, if address data is not updated for a long period, it can affect various operations, such as the inability to properly manage customer information due to the mixing of old addresses and inconsistencies in spelling, decreased delivery rates and increased delivery costs for promotional materials and contract confirmations, and the inability to pinpoint locations on maps.

In particular, for financial institutions that handle a large amount of address data, such as customer information and collateral property information, it is crucial to keep address data accurate and up-to-date. Regularly maintaining address data and performing address normalization and adding latitude and longitude as needed not only improves data quality but also leads to its use in various operations, such as streamlining customer management, properly managing collateral properties, and quickly understanding the situation in the event of a disaster.

If you are interested in GeoTechnologies, Inc.' address verification service, please see this document.

We also offer free trials for various services, so please try them out here.