Bank Account Ownership: The Ultimate Risk Detector for Lenders

Lenders face numerous challenges in verifying the identity and financial stability of borrowers. One of the most critical issues that lenders encounter is fraud, which can result in significant losses for both lenders and borrowers.

96% of US companies were targeted with at least one payment fraud attempt last year. To combat fraud, lenders need to use bank account validation solutions to ensure that borrowers’ bank accounts are legitimate and that the accounts are actually owned by the borrower.

Bank account validation is essential for lenders because it helps them to verify the ownership of the account and confirm that the account is active. This validation process is critical in preventing fraud, as it aids lenders to identify potential fraudsters who may be using fake bank account details. By validating a borrower’s bank account, lenders can reduce the risk of fraudulent activities such as money laundering, identity theft, and unauthorized account access.

Automation For Efficiency

Though there are various methods to validate bank accounts, such as manual verification or automated verification solutions, manual processes can add friction and consumer drop-offs. This process requires lenders to contact the bank and verify the bank account ownership and account status manually. Additionally, manual verification is time-consuming, can be prone to errors, and can result in delays. Automated bank account validation solutions, on the other hand, provide a faster and more efficient way to verify bank accounts. ValidiFI offers lenders a comprehensive bank account validation process that includes account ownership verification, account status verification, and risk assessment.

ValidiFI’s Bank Account Validation solution helps lenders verify bank account ownership through a multi-layered authentication process that confirms the identity of the account owner. This process involves checking the account holder’s name, address, phone number, and other personal information against a range of databases to ensure that the account belongs to the borrower.
Additionally, ValidiFI’s Bank Account Validation solution also includes account status verification, which ensures that the account is active and in good standing. This verification process includes a live ping of the bank account to indicate whether the account is open and active.

Prevent Fraud

Bank account validation solutions are critical for lenders to prevent fraud and improve their lending decisions. These solutions offer lenders a comprehensive and efficient way to verify the ownership of bank accounts, confirm account status, and assess potential risks associated with the account. By using ValidiFI’s solution, lenders can make informed lending decisions, reduce the risk of fraud, protecting their business and their customers from potential losses.

Reduce Risk

Moreover, by utilizing ValidiFI’s Bank Account Validation, lenders can reduce the risk of fraudulent activities and improve their lending decisions. This solution provides lenders with a fast and efficient way to verify the ownership of bank accounts, confirm the account status, and assess potential risks associated with the account. Now lenders have the opportunity to make informed decisions on a wider range of consumers, including the elusive thin-file, no file, millennials, and new to country.

In fact, our goal at ValidiFI is to better equip organizations with alternative data technologies and insights that help mitigate fraud and risk, reducing your losses and enhancing growth. To speak with a fraud expert or data scientist on our team about any one of our revolutionary fraud solutions contact us today.