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Know How DIRO Helps in Verifying Bank Account Information?

Banking frauds are increasing day-by-day, to prevent frauds you can verify bank accounts. Know how DIRO’s technology can help in this.

Verifying Your Bank Account: How DIRO Verifies Bank Account Information

Digital banking or electronic banking has changed the way banking operations work. While they improve the overall efficiency of financial operations, it also makes the financial institutions susceptible to risks of financial fraud.

Banks, financial institutions, and other organizations that deal in financial services are still making necessary changes to cope with the digital revolution. This switch to digital banking operations can reduce the risk of human error but it also increases the risks of financial crime.

bank statement verification-DIRO Helps in Verifying Bank Account Information
bank statement verification

Cyber criminals try their best to find a weak point in a bank’s operating system to gain access which can lead to a loss of millions of dollars and confidential customer information breach.

To successfully complete a customer onboarding and to send payments directly from your bank account, it has to be verified. A verified bank account reduces the risk of financial crime such as terrorist funding, money laundering, and basic money stealing. Here are the main methods of account verification.


Verifying Your Bank Account

To be able to send payments from your bank account, organizations need to verify the bank account information first. It is suggested to take as much time as it is necessary to verify bank account information before the transfer of funds to avoid future complications.

Bank account verification mitigates the risk of fraud of any kind. Organizations can use these common methods of bank account information verification or they can use the latest third-party technologies. The use of traditional methods is secure but sophisticated attackers can find a way to get around the services.

Third-party technologies like DIRO’s document verification services can help banks, financial services, and FinTechs to verify bank account holder information which can save time, resources and reduce cost. The most common methods of online account verification are:


  1. Instant Account Verification 

Instant Account Verification or IAV is a common method of bank account verification. One way to verify your bank account is by entering your username and password that you use for accessing online banking. IAV allows businesses to check and verify if the customer’s source of money is legitimate or not in just seconds.

Instant account verification works with only those who already have a relationship with a bank or an organization. Let’s say that a customer of JP Morgan Chase wants to transfer money to an account in Epic Bank, the safest way to do so is by instant account verification.

As mentioned, to use IAV, a customer has to enter the login credentials that they use for online banking. A financial aggregator then logs in on the behalf of the customer and securely enters the account number and the routing number, and balance, and other personal details if they are available.

IAV is preferred by lenders and businesses that want to enroll a customer into the ACH-based payment plan. During the new customer onboarding process, the biggest friction faced is setting up recurring payments. Examples of recurring payments are insurance premium payments, mortgage repayment, or car loan repayment.

In either case, there is a lot of potential for user error while entering the information, still, the use of Instant Bank Account Verification helps in reducing the risk of fraud and financial crime.

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2. Micro deposits

If the bank or any other financial institution doesn’t have the option of electronic login verification, then they’ll verify account information using the “micro deposit” process.

The micro-deposits are two small test deposits that are sent to the user accounts to verify that they have the correct information or not. The micro deposit takes 1-5 business days to reflect in your bank account, users can watch the transaction in your account transaction history.

Customers should know that any and all small deposits that were sent to your account for verification will be withdrawn from your account within 10 business days, the amount will be withdrawn with two different transactions of a single transaction. All this depends on the bank you are associated with.


How DIRO Streamlines The Bank Account Information Verification Process?

The methods mentioned above for bank account verification are for those who are already in a relationship with a banking institution. Criminals who have already gained access to a bank’s system can cause a lot of problems including ruining the organization’s reputation.

To improve their chances against financial crime and risks, banks need to verify the information of users during the onboarding process.


DIRO’s document verification technology assists banks, financial institutions, and FinTechs in verifying customer’s information like address proof, utility bills, student records, licenses, and other information.

By using the technology during the customer onboarding process, organizations can reduce the risks of getting fooled by synthetic identities. DIRO’s innovative technology can also capture information from the original web source, which means banks can verify bank account holder information of customers as well.

Using DIRO’s technology, banks can streamline their process of bank account information verification while improving efficiency and reducing costs.




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