The world of traditional product flow is being disrupted and transformed by a wave of FinTech APIs. These APIs create new and innovative ways for consumers to pay for products and services, send and receive money, and manage investments.
If you are creating one of these disruptive solutions, you must have realised that acquiring a critical mass of customers is crucial to success. Customers provide revenue by using your product and then create a network effect by bringing in more customers and locking in your solution as the market leader.
Now, imagine if your potential customers abandon the onboarding process or move to a competitor when they encounter friction during activation – due to a poor user experience or a slow verification process. This would lead to a sudden decline in the revenue and an overall impression of your product.
Getting customers quickly to their desired financial transaction
One of the crucial elements of the onboarding process is account verification. Before any financial transaction takes place, you need to verify that a customer has a valid funding source. It would also be best to verify that the customer has sufficient funds for the related transaction and that the individual using the app is authorized to use them.
This needs to be done accurately (so that the customer’s account is confirmed) and securely (so sensitive information is kept confidential).
Why account verification matters
Verification is a competitive lever that can help you build a critical mass of customers.
Account verification lies at the nexus point between the two complementary goals – getting a solution to market quickly and getting customers to do their first transaction quickly.
It’s a necessary element of disruptive financial solutions, but it can cause delays, frustration, and abandonment if not implemented well. You could ultimately lose your most important customers – those who are most open to your solutions and the ones who will help evangelise your product.
Verifying an account happens in multiple business scenarios such as –
- Employee background check
A recruitment agency can use the feature for a candidate’s background check.
- Vendor onboarding
A marketplace that splits the commission with different vendors can use the feature to verify the account details when onboarding the vendor. The ability to integrate the API with existing ERP helps in reducing operational effort and saves cost.
- While doing payouts
Companies can verify customer accounts before sending money, thus minimizing reversals and failed transfers.
Building your account verification solution is a non-starter
Financial applications, in particular, are labour-intensive and require specialised resources. For an application developer, creating a secure and accurate account verification system from scratch is an arduous task.
It requires specialised knowledge of banking systems, identity management, secure network protocols, and database security. It must be extensively tested & should function flawlessly before entering any individual’s banking information into it.
For anyone wanting to get a financial application to market quickly, building your account the verification solution is a non-starter. But is there an easy solution to it?
Yes, Zwitch has developed an Account Verification solution that caters to two crucial goals. It provides –
- A smooth and quick verification process that is easy for customers to use, and
- Features built on core banking APIs that’ll reduce the time-to-market for developers.
How Zwitch simplifies bank account verification process
Many companies use a typical verification process, sending small amounts of money into the customer’s chosen bank account. These deposits can take 1-2 days to reach the account, and only then can customers complete the validation process.
It gets the job done, but it’s not the ideal scenario for anyone involved.
Zwitch’s Plug and Play integrated account number verification API helps you confirm bank account validity without exposing data to a third party. By accessing updated data, the risk of identity fraud and the possibility of having incorrect or incomplete data is reduced.
Using the Zwitch onboarding solution, you can instantly verify account ownership by leveraging API to get users’ account information straight from their banks. The verification can be done for all recognised Indian banks, including public banks, private banks, and cooperative banks.
Once the users connect to their account and authenticate with their bank, their information is pulled automatically to complete the onboarding process – all in under a minute. And of course, since the information comes from the banks, you know you’ll get accurate and valid data.
It takes less than a minute!
This simplifies the verification process to provide a faster and easier onboarding with a setup process for direct debit and payouts.
Get access to a complete Verification Suite
- Bank Account Verification
Verify if a bank account exists, match the name provided by the beneficiary with the name at the bank and minimise the failed or transfer reversals. If the verification fails, you’ll know the exact reason for the failure.
- UPI ID Verification
UPI ID (also called Virtual Payment Address or VPA) is a unique ID you need to create to send and accept money via UPI. Once a UPI address is created and mapped against your existing bank account, you can share your UPI address (e.g. abc@okaxis) with the payer.
As a business, the ability to verify a UPI ID comes in handy. The different use cases can be background verification at the time of onboarding a new user/vendor. Before releasing payment to a UPI ID, Zwitch provides instant confirmation if the UPI ID is valid and shows the account holder’s name.
- IFSC Verification
The most exhaustive list of IFSC codes is updated weekly. Verify whether the IFSC is valid, the bank name and the bank branch.
Zwitch to a seamless onboarding process
The most successful companies can disrupt existing markets and achieve explosive growth by inventing new and innovative ways of performing everyday tasks.
You need to reach a critical mass of customers quickly to disrupt a market effectively, demonstrate viability to your investors, create a network effect to become the market leader and build crucial revenue. Anything that hinders that growth in your customer base could leave you vulnerable.
Although account verification is just one part of your onboarding process, it may be the most crucial part. If it’s slow or frustrating, customers will abandon your application. If it takes too long to implement, you won’t get to market fast enough or with sufficient functionality. Only an API verification solution can solve both these problems and will genuinely help in disrupting the market.
Zwitch Account Verification is a simple-to-deploy API that provides real-time account verification through a network encompassing most Indian deposit accounts. It employs bank-level security developed over four years of building innovative digital financial services solutions to 1 million businesses in India.
It reduces your launch time and transaction time for your customers by giving you the best opportunity to build the customer base you need. So what are you waiting for? Explore Zwitch Account Verification APIs today.