In the era of instant gratification, people and companies are looking for ways to speed up processes that used to take days to complete. For example, customers and organizations involved in financial transactions want the ability to approve or deny a loan immediately. You also want to determine if malicious activity is taking place.
The latter reason is most important. Over 650,000 cases of financial fraud were reported by both consumers and lenders in 2019. Both parties need to mitigate this situation so that loans can be approved and extended to suitable borrowers. One answer to that is the Immediate Bank Review (IBV).
You can find more information in two ways to explain this concept to your customers.
For your business customers
While larger banks and lenders may already be using IBV, new or smaller organizations may not be aware of it. The simple explanation is instant bank verification is a tool that your business customers can use to instantly record a consumer’s activity. It helps a bank or other lender determine whether providing funding to an individual or group is an excellent risk.
More specifically, machine vision is provided by many companies around the world. Organizations like Transcend Pay work with financiers to pull monetary data from those requesting funds. It goes beyond a basic review of a borrower’s credit report. In addition, it goes a step further than examining the transaction history of someone who is already a customer.
IBV reaches banks and other lenders worldwide via an application programming interface (API). Once communication is established, information about the person or group applying for the loan will be requested. By checking and compiling big data, computers send the required information to the machine vision system.
In return, a comprehensive report is produced for the lender to review. IBV also points out potential issues that could be related to a bad financial history or potential fraud. Based on this data, the lender can make an easier decision to grant or decline a loan.
But it goes beyond that. IBV is also used to check if a person or company is legally willing to open a new account. With a data call, IBV reports other accounts that have been opened under the individual or group. The number of accounts and activities should determine whether the client is valid or performing malicious exercises.
For your customers
Much of what IBV offers is beneficial to the business. Nevertheless, the consumer also benefits from IBV. The data provided can reveal potential problems that the individual or the company has never realized.
Similar to a credit report, an IBV shows past and current activities on all financial accounts. This provides guidance to the lender. You can see what’s currently active and which accounts they forgot they were opened. The lender increases their chances of getting a new loan approval by making the required payments and closing these accounts.
In addition, potential cases of fraud are uncovered by a business operation and IBV. The data can view bank accounts and loans that were opened under their name and were never approved. This can prevent the consumer from getting other loans in the future. In this example, the IBV therefore helps to identify and minimize attempts at fraud to destabilize a person or a company.
An IBV also does something for the consumer. It enables them to review their financial records before making a large investment. For the individual, this could be something like buying a car or a home. This could include purchasing equipment, renovations, or building a new facility for a business. With a credit report and an IBV in hand, the consumer has an incredibly large amount of data to show to investors.
Ultimately, instant bank verification is a powerful tool. Consumers and financial institutions no longer have to wait a day or more for validation. In addition, with IBV, credit insurers have a stronger foundation to stand on when approving or denying a loan.
Those who are not familiar with IBV must contact their financial institutions or verification companies. It can shift the playing field from uncertainty to trust.