Finologee announces “Verification of Payee” platform IBANTrust for improved payments security

During the recent ABBL Instant Payments deep-dive session held on 23 April 2024, Finologee revealed its latest initiative to bolster payments security. Finologee’s “Verification of Payee” platform, IBANTrust, ensures that payers have the means to confirm the legitimacy of the payee’s payment details before proceeding with an instant credit transfer.

Financial institutions and payment service providers (PSPs) affected by the new European regulation for instant credit transfers in euros, which will become mandatory for banks from October 2025, as well as those affected by the upcoming PSD3/PSR package, are bound to strictly comply with the IBAN name verification requirements set out in these regulations.

In the future, PSPs will be responsible for verifying the match between the name and IBAN provided by the payer, notifying the payer of any discrepancies, offering notification services and ensuring completion of the verification process before authorising the payment. Similarly, the payee’s bank must confirm the alignment of the payment account identifier and payee’s name provided by the payer via the payer’s bank.

FinologeeIBANTrust offers robust features that streamline IBAN-name checks. It provides end-to-end data verification based on payment service user (PSU) instructions. While exposing and integrating payee’s information and ensuring high-end security and full financial industry compliance, the platform enhances transparency and trust in instant payments. Its state-of-the-art API connector empowers payers to validate payee details, contributing to a safer payment ecosystem.

He further underscored that in particular existing customers, for instance those leveraging Finologee’s PSD2 or CEDRS compliance products, can seamlessly utilise the IBANTrust offering by adjusting the API. The platform’s versatility extends beyond mere payee verification, encompassing bank connectivity and seamless integration with other service providers. “Implementing IBANTrust is straightforward and easy”, he concluded.

He added, “Today marks an important milestone for the Finologee banking compliance product line, alongside CEDRS and PSD2, as we launch our “Verification of Payee” platform IBANTrust. It underscores our commitment to integrating best-in-class components to improve the experience for our bank customers and increase security and transparency in payments.” 

The platform serves as a one-stop destination for private, commercial and depositary banks, alongside specialised payment e-money institutions, aligning seamlessly with PSD2/3 regulations and enabling account holders reporting through its CEDRS platform, in anticipation of the future FIDA platform. It distinguishes itself through top-notch custom integration services, modules and a dedicated delivery team, ensuring impeccable support, system availability, reporting and more.

Reflecting on the journey, Jonathan Prince shared with the audience, “We actually had the opportunity to pioneer verification of payee in Luxembourg through Digicash, working closely with banks to integrate seamlessly into their systems. This collaboration was not just about building trust with consumers; it marked a meaningful advancement for participating banks, particularly with the introduction of Digicash P2P payments in 2015. With IBANTrust, we are leveraging this invaluable experience and expertise.”