Sandbox Banking and Plaid Partner on Automated Identity Verification Solutions

Sandbox Banking and Plaid have partnered to offer automated identity verification solutions for the financial services industry.

This collaboration will bring together banking solutions from Sandbox Banking and identity verification technology from Plaid, the companies said in a Wednesday (March 27) press release.

“Bolstering the era of digital transformation in banking, this partnership is shaping a tech experience that is not only secure and efficient but also aligned with the dynamic needs of modern account holders and institutions alike,” Kelsey Saia, vice president of partnerships at Sandbox Banking, said in the release.

The new collaboration will focus on integrating the Customer360 module and customer experience workflows from Sandbox Banking’s Integration Platform-as-a-Service (IPaaS) Glyue with Plaid’s Identity Verification solution, according to the release.

Customer360 integrates customer data across platforms to ensure real-time updates, while Identity Verification strengthens onboarding processes to prevent identity theft and ensure secure account creation, the release said.

This integration will offer financial institutions a comprehensive suite of tools for enhancing customer or member engagement, mitigating risks and fortifying account security, per the release.

The partnership will also develop data syncing for enhanced risk protection; ongoing monitoring and fraud prevention; and seamless account verification in real time, according to the release.

“With consumers increasingly turning to digital solutions to manage their finances, it is critical that financial institutions are properly equipped to protect and maintain their customers,” Tamara Romanek, head of partnerships at Plaid, said in the release. “Partners like Sandbox Banking offer accessible innovation for financial institutions, which is a key element of impending open banking regulation.”

The need for upfront fraud prevention during customer onboarding has increased as financial flows have accelerated, Plaid Head of Payments Rahul Hampole wrote in the PYMNTS eBook, “2023: The Year of Strategic Shifts in Business.”

Plaid has found that 76% of FinTech users prefer to verify their identity when signing up for a new service, Hampole wrote.

“Sophisticated identity verification and authentication technology to mitigate fraud are also emerging,” Hampole wrote. “This year, businesses will take a step toward implementing bulletproof solutions to confirm users are who they claim to be during sign-up without introducing friction.”