Orum launches verification solution for US bank accounts

Wednesday 11 October 2023 10:31 CET | News

API solutions provider Orum has launched Verify, a service that validates US-based consumer and business bank accounts.

Build on top of FedNow, the Federal Reserve’s instant payment rail, Verify determines whether a bank account is open and valid before initiating payments. The solution has complete coverage of all US-based consumer and business bank accounts, aiming to support enterprises in authenticating any type of account. 

API solutions provider Orum has launched Verify, a service that validates US-based consumer and business bank accounts.

Verify’s features 

With the launch, Orum’s objective is to replace the traditional way businesses verify bank accounts, including slow microdeposits that must be inputted by each user, batched historical data that does not reflect intra-day changes, and the manual entry of end-user login credentials. Through this, the company wants to reduce the lost revenue and decrease the time spent on authenticating bank accounts.

The launch of FedNow enabled Orum to develop a technology that leverages the new payment rail to provide real-time account information to enterprises. The data is automatically sent back to the business via a webhook, offering real-time results and removing the need for customers to be involved in the bank account verification process. Orum developed Verify based on the demand from financial, business, and banking partners who required the ability to instantly validate accounts before processing payments. The company took into consideration opinions from restaurant and ecommerce platforms, as well as from 529 college savings platforms and a multi-national bank.

By using Verify, Maroo, a wedding and events payments platform, saw an increase in business conversion, with officials from the company confirming that the solution helped in onboarding customers with reduced friction, as well as in scaling its business. 

More information about Orum

Based in the US, Orum offers an API solution that provides access to all major payment rails, including RTP, FedNow, Same Day ACH, and Wires. The company enables businesses to launch instant payments and instant bank account verification within days while reducing the costs of bank integrations and prolonged compliance. Orum’s services aim to allow businesses and banks can launch new payment experiences that attract and monetise more customers through this.

Led by fintech operators from LearnVest, Square, N26, Klarna, Marqeta, and Stash, Orum raised over USD 82 million from investors, including Accel, Canapi, Bain Capital Ventures, Inspired Capital, Homebrew, Acrew, BoxGroup, Clocktower Ventures, Primary Ventures, and American Express Ventures.

Back at the beginning of July 2021, Orum raised USD 56 million in a Series B funding round, an addition to the previously obtained USD 21 million. With the funds, the company expanded its solutions and customer base. The company’s commitment is to improve the financial system by bridging the gap and creating a more inclusive environment. 

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Keywords: identity verification, digital verification, bank account, product launch, online security
Categories: Fraud & Financial Crime
Companies: Orum
Countries: United States
This article is part of category

Fraud & Financial Crime


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