Fintech
Moneyhub launches account verification service powered by Open Banking
Moneyhubthe UK-based data and payments platform, has launched its new account verification service, powered by open banking, to enable better payment security using bank-level security controls (including PSD2 SCA) and data biometrics.
Moneyhub Account Verification leverages the Moneyhub AIS API to improve the security and integrity of online financial transactions. It provides a reliable way to ensure that payment details and account names match your registered account information exactly.
Verification technology allows financial institutions to reduce the risk of financial fraud by ensuring that all transactions are sent or received by the correct and verified recipient. Additionally, it helps streamline the process of creating new accounts by using confirmed bank details as an additional identity check, making the payment journey simpler for both the sender and the customer.
Marco MunsonMD of payments at Moneyhub, said: “With fraud set to cost the UK a record £2.3 billion in 2023, the launch of Moneyhub Account Verification is a timely reminder of the power of open banking to provide solutions excellent at modern problems.
“As Payee Confirmation remains a service available only to account-holding financial institutions, many organizations have difficulty ensuring that the account from which a payment is received, or to which a refund or payment is intended, belongs to their customer .
“Our account verification service uses consensus-based open banking to verify that the customer is the true owner of an account by using the bank’s authentication services to verify whether the customer is accessing an authorized bank account.
“While enhancing the security of everyday transactions, Moneyhub Account Verification goes a step further and simplifies processes for both financial institutions and their customers. This increase in convenience goes a long way towards increasing customer and partner trust.”
Improve safety and streamline processes
By leveraging Moneyhub account verification, financial institutions can reduce the amount of form-filling required for opening new accounts and loan applications for customers.
When combined with Moneyhub’s decision-making and categorization solutions, it can achieve greater accuracy in terms of convenience.
For subscription services, the Moneyhub account verification service can be used to verify ownership of the bank details provided during the registration process, including for direct debit payments. This also eliminates the need to manually key in account numbers and sort codes and, by extension, reduces the possibility of human error and acts as a fraud reduction mechanism for setting up direct debits.
When making payments to customers, Moneyhub account verification, supported by mobile banking authentication, ensures that the customer is the owner of the account into which payments are made, once again acting as a deterrent to fraudulent payment requests by ensuring that the account details provided belong to the customer.