In a world where doing everything quickly and securely is considered essential for any business to succeed, instant bank account verification has become a key tool for businesses and fintechs. It is a process that allows you to validate the authenticity of your customers’ bank accounts quickly and efficiently, improving the user experience and minimising the risk of potential scams.
Below, we will explain the multiple benefits of this technology and introduce you to some leading companies in the sector that specialise in offering instant verification solutions.
What is instant bank account verification?
Instant bank account verification is a process through which your company can authenticate customers’ banking information in real time. This includes validating details such as account number, account ownership and account existence in a quick and hassle-free manner. As you will see, this technology is particularly useful in sectors such as finance, where trust and security are paramount.
Benefits of instant verification
Fraud reduction
The first and most important benefit of instant verification is fraud reduction. When your business is able to validate its customers’ banking information, it minimises the risk of fraudulent transactions that could result in significant losses. As such, instant verification allows you to identify suspicious accounts or incorrect data before a transaction takes place, protecting both your business and your own customers.
Improved user experience
It is clear that today’s consumers value speed and efficiency. As such, instant bank account verification is the ideal option if you want your business to offer a smoother and faster registration process on the website. That is, instead of users having to wait days to verify information, they can access the services you offer almost immediately. Not only does this exponentially improve customer satisfaction, but it also contributes to higher conversion rates.
Regulatory compliance
Typically, businesses in the financial sector are subject to a number of regulations and standards that require validation of customer identity and banking information. When you have an instant verification service, your business is able to comply with these regulations effectively, as these systems automate the verification processes, allowing you to reduce the risk of penalties and fines for non-compliance.
Streamlining internal processes
Manual verification of bank accounts can be a time-consuming and error-prone process. Whereas when you perform instant verification, you streamline your internal operations, reducing the time and resources spent on data validation. This way, your staff can focus on more strategic tasks, and you improve overall operational efficiency.
Companies offering instant verification services
There are currently many companies on the market that specialise in offering instant bank account verification solutions. Here are some of the most prominent ones:
Prometeo
Prometeo is a platform founded in 2021, which in a short period of time has managed to consolidate itself as the technological enabler that allows large companies and banks in Latin America to offer account validation as a proprietary service for their corporate clients. It offers a robust API that allows companies to access banking information instantly, easily and securely.
Plaid
Plaid is a US company that offers financial services. Its main offering is a platform that allows customers to link their bank accounts with different fintech companies. Through Plaid’s network services Software Service Provider (SSP) interface, its customers can connect popular financial technology applications to their traditional bank accounts.
Yodlee
Yodlee is another major player in the bank account verification space. It has an extensive network of banking connections that allows companies to access real-time financial data, facilitating account verification and credit risk assessment.
TrueLayer
TrueLayer is a UK-based global open banking platform that provides businesses with an open banking network through which they can securely access financial information and enable instant payments by combining real-time banking payments with financial and identity data.
How to implement instant verification in your business
If you are considering implementing instant bank account verification in your business or fintech, here are some steps to follow:
Needs assessment
Before choosing a verification service provider, you need to assess your specific needs. Consider: what kind of information do I need to verify? What is the volume of transactions I handle? Answering these questions will help you find the right solution.
Provider selection
Research and compare different instant verification providers. Make sure you choose a provider that offers a strong and easy-to-integrate API, as well as good customer support. Companies like Prometeo are a good option to consider.
Implementation and training
Once you’ve selected a provider, it’s time to implement the solution into your system. To do this you will need to train your staff on how to use the new tool and how to interpret the results of the checks.
Monitoring and optimisation
After implementation, it is essential to monitor the performance of the instant check. Get into the habit of regularly reviewing the results and look for opportunities to optimise the process. This will allow you to maximise the benefits of verification and adapt to changing market needs.
Always bear in mind that instant bank account verification is an essential tool that will allow you to improve the security and efficiency of your operations by reducing fraud, improving user experience and regulatory compliance.
Therefore, when considering providers of such solutions, consider your specific needs first and foremost, and the benefit they will bring to your business in terms of security and seamlessness, which will ultimately contribute to the growth and success of your business.
HedgeThink.com is the fund industry’s leading news, research and analysis source for individual and institutional accredited investors and professionals
