Bank Verification Service for Enhanced Compliance

Automated Bank Account Validation (ABAV) is the process of verifying the bank account owner by comparing their account and routing numbers to a the received data from one of the available bank accounts. Often, clients manually enter their bank account details, and a third party checks this data after successfully connecting to a bank. BSB payments or offline payments, such as orders done through the phone, often use ABAV.

iDenfy offers such services, combining bank verification with ID and business checks.

iDenfy’s bank verification service integrates seamlessly with open banking, streamlining customer onboarding — a crucial step in the identity verification process.

There are several functionalities, such as:

• Automated collection of key account holder information from the bank account (including full name, bank details, and IBAN).
• The ability to cross-match bank account owner ID information with other reputable databases.
• An option to add other fraud prevention measures, such as Customer Risk Assessment, to automatically calculate the customer’s risk profile by assessing each transaction.

It’s important because it reduces risks like fraud, chargebacks, and money laundering. For example, a lending company might use bank verification to confirm a borrower’s financial status, while an online marketplace might use it to ensure sellers’ payouts are sent correctly. iDenfy’s solution simplifies this by automating the verification process.

With providers like iDenfy, bank accounts can often be verified instantly using real-time APIs. Older methods like micro-deposits might take a few days, but modern systems significantly speed up the process, improving customer experience.