US-based ValidiFI has launched Compass, a decision intelligence layer combining account validation with identity, fraud, and payment-risk signals.
Compass is delivered through a single API and configured to the requirements of each customer. Its stated purpose is to help organisations assess the risk behind a bank account or payment and determine what action to take next. The tool is already available for use.
Moving beyond account validation
Account validation has traditionally been used to confirm whether a bank account exists, is open, and can be used in a transaction. ValidiFI considers this check foundational but argues that it leaves several questions open. These include whether the account belongs to the consumer presenting it, whether it shows signals linked to fraud or suspicious behaviour, and how likely the account and payment relationship is to perform as expected.
According to the company, answering these questions across separate systems and workflows can create blind spots, add friction for customers, and lead to avoidable losses. To exemplify the potential issues this fragmentation can create, ValidiFI cited one recent customer analysis in which accounts carrying risk signals that validation alone had not detected generated seven times more ACH returns.
How Compass works
Compass acts as a single point of access to ValidiFI’s intelligence capabilities. Organisations do not need to interpret hundreds of individual attributes from different sources. Instead, dynamic routing sends each inquiry to the relevant validation and intelligence sources, based on the data available and the workflow the customer has configured.
The product draws on ValidiFI’s predictive bank account and payment intelligence network and combines risk dimensions such as velocity, stability, recency, and behavioural patterns. Depending on the application and input data, the signals returned can cover account status and history, identity and ownership matches, contact-information risk, prior account relationships, velocity patterns, and known fraud activity.
Implementation follows a defined process. ValidiFI works with each customer to identify the decision to be improved, set a measurable baseline, and test relevant signals against historical outcomes. The resulting configuration reflects the customer’s use case, risk tolerance, and the value demonstrated during evaluation. The company notes that results vary by customer and use case.
The launch shifts ValidiFI’s offering from standalone checks towards orchestrated decisioning. ValidiFI uses both permissioned and non-permissioned data to serve financial institutions and fintechs across payments and lending, and Compass consolidates these capabilities into a single configurable layer. The company says that evaluating signals together can help organisations reduce fraud, improve payment success rates, and speed up approvals.
