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Moneyhub Launches Open Banking Powered Account Verification Service

Moneyhub, the UK-based data and payments platform, has launched its new account verification service, powered by open banking, to enable better payment security utilising bank-level security controls (including PSD2 SCA) and biometrics.

Moneyhub Account Verification leverages Moneyhub’s AIS API to enhance the security and integrity of online financial transactions. It provides a robust method for ensuring that payment details and account names correspond precisely to registered account information.

The verification technology enables financial institutions to reduce the risk of financial fraud by ensuring all transactions are sent to, or received from, the correct and verified recipient. In addition, it helps streamline the process of setting up new accounts by using corroborated banking details as an additional identity check, making the payment journey simpler for both the sender and the customer.

Mark Munson, MD of payments at Moneyhub, said: “With fraud costing the UK a record £2.3billion in 2023 – the launch of Moneyhub Account Verification is a timely reminder of the power of open banking to provide excellent solutions to modern-day problems.

Mark Munson, managing director at Moneyhub Payments
Mark Munson, managing director of payments at Moneyhub

“With Confirmation of Payee remaining a service only available to account holding financial institutions, many organisations struggle to ensure that the account from which a payment is being received, or to which a refund or payment is destined, belongs to their customer.

“Our account verification service uses consent-based open banking to verify that the customer is the true owner of an account by utilising the bank’s own authentication services to corroborate if the customer is accessing an authorised bank account.

“While enhancing the security of day-to-day transactions, Moneyhub Account Verification goes a step further and streamlines processes for both financial institutions and their customers. This uptick in convenience goes a long way to increasing trust with customers and partners.”

Enhancing security and streamlining processes

By leveraging Moneyhub Account Verification, financial institutions can reduce the amount of form filling required for new account openings and loan applications for customers.

When combined with Moneyhub’s decisioning and categorisation solutions it can achieve greater accuracy for affordability.

For subscription services, the Moneyhub Account Verification service can be used to verify ownership of the bank details submitted during the signup process, even for Direct Debit payments. This also removes the need to manually type in account numbers and sort codes and, by extension, reduces the chance of human error and acts as a fraud reduction mechanism for Direct Debit creation.

When making payments to customers, Moneyhub Account Verification, supported by mobile banking authentication, ensures that the customer owns the account to which payments are being made, again acting as a deterrent for fraudulent payout requests by ensuring that the account details provided belong to the customer.

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