iDenfy unveils Bank Verification tool for customer onboarding

This tool assists businesses in complying with KYC regulations, ensuring that users are not fraudulent account holders and do not submit forged data.

As regulatory requirements such as the MiCA and KYC regulations become stricter, the need for effective bank verification services has increased significantly. iDenfy's research highlights the escalating threat of cybercrime, with recent estimates projecting the global cost of such activities to reach USD 9.5 trillion by year-end. This figure underscores not only immediate financial losses but also long-term implications for data integrity and customer trust.

This solution helps businesses combat fraud

The Bank Verification solution connects to over 2,500 banks across 29 countries, allowing organisations to authenticate customers in real time by matching bank account details with onboarding data. This capability is designed to protect individual privacy while aiding compliance with KYC regulations, which are crucial for preventing money laundering and ensuring transparency. The solution is capable of managing accounts across multiple banks without placing an undue burden on the end user.

The new offering expedites onboarding for legitimate users while preventing illicit activities by automatically retrieving critical identity information, including user names, IBANs, and bank login credentials. It also enables businesses to assess customer risk levels via the Open Banking API, facilitating compliance teams in analyzing transactions and evaluating financial health.

The updated system automates the verification of customers' financial standings and proof of funds by extracting detailed bank statements that can be cross-checked with identity information, allowing businesses to identify suspicious activity and onboard only legitimate customers. Companies can store transaction logs for up to eight years and download comprehensive transaction reports in PDF format, thereby simplifying auditing and compliance. Sensitive client information is not stored to safeguard customer rights.

This tool also includes a built-in KYC risk assessment feature for high-risk industries, such as trading, gambling, and cryptocurrency. Businesses can use this functionality to conduct thorough customer verification and assess transaction risks, employing better due diligence in higher-risk scenarios.

With the new Bank Verification solution, iDenfy aims to help businesses improve identity verification, meet regulatory requirements, and enhance their onboarding processes while reducing fraud risks.