Equifax has launched a new solution which can match identity information - such as the consumer’s name, address and date of birth - with transaction data provided through Open Banking in real time.

The latest development in its partnership with consents.online integrates the Equifax Bank Account Verifier with open Application Programming Interfaces (APIs) to reduce fraud by allowing credit providers to confirm that account information belongs to the person applying for credit, and not a potential fraudster.

The verifier compares the sort code and account number taken from the customer’s online bank account to Equifax’s current account database. The name and address details associated with the bank account are then compared to the details provided by the customer during the credit application. This links the transaction data back to an individual, performs an anti-impersonation check and helps verify the customer’s identity.

HSBC UK is now testing the new verification process as part of the on-boarding solution to streamline its digital customer application process.

Jake Ranson, banking and financial institutions expert at Equifax UK, said that since the implementation of Open Banking at the start of the year he has seen more and more consumers willing to share their current account data digitally to access products and services.

“In our work with clients to develop their Open Banking solutions we uncovered an important gap in the process, as identity information isn’t provided through APIs,” he continued. “Part of the challenge is educating consumers on what Open Banking means in real life, and a streamlined customer identity verification process that helps them get a faster credit decision is a great example.”

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