Orum Improves Bank Account Verification with FedNow-Powered Product
Payments API provider Orum has unveiled a groundbreaking product, named Verify, leveraging the newly introduced FedNow rail to revolutionize the way bank accounts are verified. This innovative technology can swiftly determine the status and validity of any US-based consumer or business bank account within a mere 15 seconds before commencing payments, as highlighted by Finextra.
Orum’s motivation behind launching Verify stems from the recognition that businesses have long grappled with outdated methods of verifying bank accounts. These archaic techniques include the cumbersome process of manually inputting slow microdeposits for each user, relying on batched historical data that fails to reflect real-time intra-day changes, and even resorting to the laborious manual entry of end-user login credentials.
While credential-based verification has gained traction in the consumer sector, Orum asserts that it falls short when it comes to B2B payments. The company contends that the demands of B2B transactions require more sophisticated solutions.
The introduction of the FedNow platform has empowered Orum to develop cutting-edge technology that taps into this new payment infrastructure, offering businesses instantaneous access to real-time account information. This rich data is automatically relayed back to the business via a webhook, delivering real-time results and obviating the need for customers to participate in the bank account verification process.
Stephany Kirkpatrick, the CEO of Orum, highlighted the significance of this innovation, stating, «Failed payments cost the global economy over $100 billion each year. Lost time spent verifying accounts translates to lost revenue and ultimately lost customers. This is especially pertinent for business bank accounts, which are notoriously challenging to verify.»
Kirkpatrick further emphasized the need for businesses to have confidence that they are transacting with legitimate accounts to ensure the safe and accurate transfer of funds. She pointed out that most existing solutions are plagued by slowness and lack comprehensive coverage for all B2B use cases. With Verify, built atop the FedNow platform, Orum has fundamentally transformed this equation, making it feasible to instantly verify any type of bank account.
Orum’s innovative product, Verify, underpins a significant leap forward in the realm of bank account verification, offering businesses the speed and accuracy they need to facilitate payments securely. With FedNow as its foundation, this technology is poised to reshape the landscape of financial transactions, benefiting both businesses and consumers alike.