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As open banking continues to gain momentum, providers of the technology continue to grow their ecosystem of partners to make it easier for financial institutions to validate accounts and the availability of funds within an account.
Nymbus, a provider of banking-technology solutions, has partnered with Plaid Inc. to authenticate and fund customer bank accounts for financial institutions. Nymbus’s partnership with Plaid will enable its bank and credit union clients to improve user-identity verification and reduce fraud, instantly authenticate and link members’ bank accounts, and validate account balances in real time to protect against overdrafts and enable account pre-funding. In addition, financial institutions will be able to access and analyze comprehensive transaction data.
Overall, the partnership with Plaid will streamline automated clearing house transfers between all banks and credit unions in the United States, Nymbus says.
“As more consumers rely on digital finances for their everyday lives, financial institutions need to meet their customers where they are while supporting safe and reliable money-management experiences,” Sarah Howell, Nymbus’s chief alliance officer, says in a prepared statement.
Plaid’s data network enables consumers to connect their financial accounts at more than 11,000 institutions globally to more than 5,000 digital-finance apps.
In related news, open-banking provider and Plaid competitor MX Technologies Inc. has partnered with Dwolla Inc. to automate the micro-deposit verification process and remove the need for financial institutions to manage their own ACH and micro-deposit processes.
The partnership with Dwolla was announced in conjunction with MX’s decision to extend its intelligent account-verification solution, available through the MXconnect widget or MXapi, to make it easier for consumers to securely connect a depository account.
By partnering with Dwolla, MX will automate micro-deposit verification for financial institutions by removing the need to manage their own ACH and micro-deposit processes. Removing the barrier to micro-deposit verification will give MX connectivity to all depository accounts in the U.S., the company says. Prior to its partnership with Dwolla, MX had connectivity to about 90% of U.S. depository accounts.
Automating micro-deposit verification will provide all consumers with the ability to connect to their accounts, no matter where they bank, MX says.
“At Dwolla we believe in ruthless automation, letting robots do robot things and letting humans do human things. Our partnership with MX aligns perfectly with that belief as we will automate their bank-account verification piece with micro-deposits,” Dave Glaser, president and chief operating officer at Dwolla, tells Digital Transactions News by email. “Millions of payments will occur smoothly each day because of this solution MX has configured. We’re proud to play a part and impact millions of Americans.”
