Open Banking platform TrueLayer has launched a verification API that aims to accelerate the onboarding process, reducing it from days to seconds, and remove the errors associated with traditional verification methods.
TrueLayer said that it has designed a verification logic that sits on top Open Banking rails, which matches the name supplied during the onboarding process with the name on file at the bank, thereby providing a single feed that ensures an immediate and more accurate response about whether the user’s account has been verified or not.
In contrast, traditional verification methods typically rely on manual checking of uploaded bank statements.
“Verification is the first step to onboarding a new user and yet it can often take days to verify an account owner using traditional methods. Their security is questionable, they’re prone to errors and they take forever,” said Ossama Soliman, chief product officer at TrueLayer.
Soliman said that the Verification API TrueLayer has built on top of Open Banking has created “a faster, more secure and more accurate approach to verifying a user’s account”.
“It serves businesses across multiple industries, including financial services, PSPs, wealth management and trading, marketplaces, property and iGaming.”
Among the benefits of the new Verification API highlighted by TrueLayer are that its coverage spans the major banks, resulting in a 22.5% higher success rate compared to credit bureau checks.
The use of pre-verified account details results in fewer payment failures, while embedded strong customer authentication within the bank verification flow lowers fraud risk.
The Verification API is already being used by several TrueLayer clients, including Authologic, a Y Combinator-backed provider of identity verification solutions.
In April this year, TrueLayer secured $70 million in a Series D funding round backed by venture capital firm Addition, to help accelerate the rollout of its Open Banking network.