49% of Firms Use Bank Account Data to Flag Fraud

Your business likely already has access to secure customer bank data, but you probably aren't using it to its full potential. A new report shows that while most firms have permission to access bank account data, only 49% actually use it to flag fraud. For retailers and service providers offering consumer financing, this is a missed opportunity to reduce risk and approve more legitimate customers. Relying on real-time bank data allows you to verify identities and account balances instantly. This reduces the chances of identity theft or insufficient fund (NSF) returns during the financing application process. The data suggests a major gap between having technology and implementing it. Many operators still rely on older, slower methods to verify customers. Using open banking data helps you move faster than your competitors. It provides a clearer picture of a shopper's financial health than a credit score alone. By integrating these existing data connections into your checkout or application flow, you can spot red flags before a transaction is finalized. This shift is especially important as real-time payments become more common. If the money moves instantly, your fraud detection must move just as fast.

Source: PYMNTS

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