iDenfy, a Lithuania-based identity verification and fraud prevention software provider, has launched a new ‘Bank Verification’ solution, designed to enhance the customer onboarding process.
Through its new Bank Verification solution, iDenfy plans to help the crypto, recruitment, and fintech industries ensure that users aren’t fraudulent account holders and aren’t providing forged data. By integrating open banking solutions, it is also aiming to help businesses comply with Know Your Customer (KYC) regulations.
As the Regulation on the Markets in Crypto-Assets (MiCA) and KYC requirements become increasingly stringent, the demand for robust bank verification services has become increasingly critical. However, iDenfy’s research shows that cybercrime continues to escalate at an alarming rate. Recent estimates indicate that the global cost of cybercrime will reach $9.5trillion by the end of 2024.
Recognising the implications of this for data integrity and customer trust, iDenfy aims to enable organisations to authenticate customers in real-time by matching their received bank account details with onboarding data. With connections to over 2,500 banks across 29 countries, iDenfy’s Bank Verification solution helps manage accounts across multiple banks, regardless of the client’s transaction volume, helping make better decisions while protecting financial data and, more importantly, not overburdening the end-user with extra verification steps.
The new Bank Verification solution will onboard real users faster and prevent illicit activities by automatically retrieving important identity information — such as the users’ names, IBANs, and familiar bank login credentials to speed up the process.
Ensuring compliance across industries
By leveraging the new solutions, businesses can also identify customer risk levels using the open banking API, enabling compliance teams to analyse customer transactions and determine financial health, balance sheet state, and potential risks.
“Compliance teams will be able to access history logs, including translation dates and amounts, which enhances transparency and reduces risks associated with financial fraud,” explained Domantas Ciulde, CEO of iDenfy. “We’ve created this solution to help other compliance teams facilitate proper internal and external audits by accessing detailed transaction information in one single, easy-to-use dashboard.”
As a result, iDenfy’s updated system automates the process of verifying customers’ financial standings, including proof of funds verification, by extracting detailed bank statements. The data can then be cross-checked with the user’s identity details, helping businesses flag suspicious activity and onboard only legitimate customers.
“As regulatory demands in the cryptocurrency, recruitment, and fintech sectors intensify, our Bank Verification solution is essential for businesses facing compliance challenges. We have developed this service to help our partners execute onboarding operations quicker and ensure a smooth KYC process when verifying new users. By integrating robust fraud detection tools, we empower businesses to maintain transparency and prevent illicit activities,” added Ciulde.
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