Verification and Why Open Banking API is Important

Verification and Why Open Banking API is Important

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In banking activities, there is a term called verification. Simply put, verification is the process of checking the validity, correctness, and accuracy of data. Therefore, verification is often interpreted as a comparison between two or more objects to ensure the truth or accuracy of information.

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There is a certain amount of time required to carry out the verification process. This time can vary depending on how much information needs to be verified. One example of verification in banking activities is when banks verify data related to potential borrowers. This includes checking the borrowing history and whether there have been any instances of late or failed payments.

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What is Verification

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As mentioned above, verification is the process of checking the accuracy of information. One piece of information required by banking institutions is identity. Identity verification is important to comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations.

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Why is identity verification important? Banking institutions want to know whether the identity being used is genuine or fake. Additionally, it's important to understand the borrowing history. An individual's borrowing experience can be seen in Bank Indonesia through a credit score check. If the score is above a certain threshold, banking institutions need to consider it carefully. They may even reject loan offers if necessary.

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Open Banking API

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The digital era has led to many innovations in banking services. One of them is the emergence of open banking. This service uses Application Programming Interface (API), which allows banking services and consumers to integrate with third parties.

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So, open banking is a system that provides access to consumer data stored in bank service systems via API. However, it's important to note that this system is equipped with good security measures for users.

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The existence of open banking APIs indirectly facilitates bank verification. Users only need to fill in the recipient's account number and credit or debit card number on the provided form. After that, open banking will verify whether the account number matches the database or not. If it matches, the user is asked to create a Personal Identification Number (PIN) for the open banking API service.

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Brick supports fintech companies that require APIs to make it easier for users to access them. There are 3 products in the verification API that you need to know:

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1. Account Verification

‍Brick will help you verify accounts to make payments without errors. The process only requires the recipient's account number and the account owner's name. There are three benefits of account verification:

• Reduces operational costs: reduces manual methods for automatically verifying user accounts.
• No failures: validates 100% of accounts for successful transfers and fund withdrawals.
• Lowest cost: cost reduction or even no cost due to the ease of API.

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2. Address Verification

‍With just a phone number, Brick will help you obtain home address information. There are three benefits of address verification:

• Only one step: to check where the home address is located, only a phone number is needed. Just one step, right?
• Best network: able to cover the network of all telecommunications companies in Indonesia.
• Only a few seconds: only takes a few seconds to verify. Simple and easy to do, isn't it?

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3. Identity Verification

‍Brick API only requires an ID number to compare user information. To check user data, include the ID number, name, place and date of birth, and address. There are three benefits of identity verification:

• Comprehensive data acquisition: with just one step, you will get all the data or information needed.
• KYC: verifies the user's entire identity with just a selfie.
• Security guarantee: able to validate user identities via trusted sources.

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Verification is important for a system to check the accuracy of data or information. By understanding what verification is, companies can better manage data. To make customer data management effective, Brick offers the best solution for your business. Brick's Verification API will help you verify automatically so that business performance becomes more efficient.

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