Say No to Friction! Leverage Bank Data Without the Login

Bank data has proven itself as a powerful predictor of financial health and creditworthiness – the rise of open banking or “credentialed” bank verification solutions has confirmed the value of this data to a lot of companies. What if you could access a consumer’s banking data without requiring them to log in from their end?

Minimizing Friction to Access Bank Data

Although banking data can provide valuable insights, it often leads to a high-friction approach for applicants. The key issue with any friction in online experiences is customer drop-off.

This additional step of logging into an account causes a significant percentage of consumers to abandon the process. Why? The truth is that many consumers hesitate to provide their banking credentials, especially if they have alternative options. Whether due to trust, inconvenience, or concerns about fraud, the act of logging into their account introduces friction that leads to application abandonment. Consequently, this abandonment translates to both loss of customers and revenue.

Low Friction Bank Account Intelligence Solutions

To solve this problem, ValidiFI offers real-time, no login required, bank account solutions providing access to predictive bank account and payment intelligence without the associated friction. The real game-changer is the ability to leverage the same type of data used with credentialed applications higher in your decisioning waterfall so that you can leverage the power of bank and payment on more applicants.

What makes banking and payment data predictive?

What renders banking and payment data predictive is its capacity to offer organizations a comprehensive insight into consumer behavior. This encompasses factors like the account’s longevity, payment patterns, and performance. For instance, individuals often begin by missing smaller, everyday payments before defaulting on larger, more significant payments such as mortgages or auto loans. This trend makes ACH returns a key indicator of declining financial health. By harnessing real-time data analysis that scrutinizes both positive and negative transactions, organizations can effectively manage the risk posed by financially strained customers.

ValidiFI’s extensive data network consists of hundreds of attributes on the financial institution, bank account, and payment performance across all industries to provide the most comprehensive source of predictive bank account and payment intelligence. We can identify the number of approved, returned, and pending payments associated with a customer across multiple accounts.

The benefits of utilizing a login-free alternative are numerous but not limited to:

1. Increased Conversions – Removing bank logins enables consumers to feel safer and more likely to complete the application process. It also increases the speed of funding, contributing to a better, faster, frictionless customer journey.
2. Ability to Better Predict Outcomes – ValidiFI’s frictionless bank data solutions are the next best thing to a fully credentialed login for insights into someone’s true financial picture. You can access aggregated transaction-level data to determine the outcomes of a consumer’s payments based on historical and up-to-the-moment behavior.
3. Cost Savings with Use of Less Data Products – Adding frictionless bank solutions enables earlier detection of bad actors and invalid information. This reduces the reliance on expensive tech solutions for account validation and credit risk decision-making.

Aside from checking account status and standing, ValidiFI also provides frictionless solutions for real-time insight into account activity. Now you can have visibility into payments, NSFs, and account openings, all without any customer-facing interaction.

Contact us today to learn more.