By George Geddes on Tuesday 30 October 2018
Data provided in consumers’ credit applications can now be cross-examined with information from Equifax’s account database.
Credit rating agency Equifax has developed its partnership with data management platform consents.online.
Equifax’s bank account verification (EBAV) software enables the company to verify an individual applying for credit. Following the introduction of Open Banking, Equifax may access a consumer’s financial data – provided by consents.online – to compare to data from credit applications. This process verifies the identity of the applicant and reduces the risk of fraud.
Open Banking was introduced earlier this year to enable consumers to share financial data with third parties using application programming interfaces (APIs).
Equifax spotted a gap within Open Banking as identity information isn’t provided through APIs. This led to credit providers being exposed to fraudulent activities as consumers could give false information.
To improve the authenticity of applications, credit issuers provide the applicants’ bank details to consents.online. With this information the platform verifies with Equifax that the details associated with the given bank account matches the listed name, phone number and email stored on Equifax’s database.
HSBC has already adopted Equifax and consents.online’s Open Banking services earlier this year. The bank is now incorporating EBAV to improve its users’ application experience as well as testing the quality of the verification system.
Emma Steeley, CEO of consents.online, said: “We have been delighted with the response from companies wishing to innovate using the data available from Open Banking so far. Combining the Open Banking data with Equifax Bank Account Verifier has enabled us to launch the first live ID check in the Open Banking market. It is extremely exciting and showcases our continued evolution in our strategic partnership to deliver the best in class Open Banking solutions.”