US-based financial services firm SWBC has forged a partnership with Finicity, a Mastercard company and open banking solutions provider, for secure ACH ecosystem.
Under this partnership, SWBC will leverage the Finicity’s open banking platform Finicity Pay for instant account validation of online Automated Clearing House (ACH) payments.
This will help meet the National Automated Clearing House Association’s (NACHA) 2021 requirements for ACH transactions that allow better anti-fraud controls.
NACHA manages, develops, administers, and governs the ACH network in the US.
By instantly verifying the account status and details for an ACH transfer, Finicity platform’s integrated solution set will allow SWBC to create a safer ACH ecosystem.
It will also support the instant execution of ACH payments.
SWBC will also use consumer-centric open banking solution called Finicity Connect, allowing its consumers to fast-track an ACH bank payment via digital authentication.
SWBC offers insurance, mortgage, and investment services to financial institutions, individuals, and businesses.
Its platform enables receipt of ACH and card-based payments via call-centre, website, interactive voice response (IVR), mobile, or cash.
Finicity co-founder and CEO Steve Smith said: “The Nacha 2021 rule is intended to provide stronger anti-fraud controls leading to a more secure payment experience.
“Instant data verification is the best way to enable consumers to pay, get paid, or set up accounts. Our team is continually expanding our capabilities in money movement through our trusted open banking platform.”
SWBC VP of product strategy Tucker Stovall said: “Our partnership with Finicity will allow SWBC to deliver new security capabilities protecting consumers and the institutions that serve them.
“In addition, instant verification allows for speedy enrolment and immediate access to ACH transaction initiation, a significant improvement to the user experience.”