Finologee deploys the Swift payment pre-validation service: pre-validate payments upfront for fewer errors & safer transfers
As of 28 December 2023, Finologee incorporated Swift’s payment pre-validation solution, expanding its suite of Swift services offered to clients. This seamless integration into Finologee’s banks and accounts management platform LYNKS empowers clients to confirm the accuracy of payment data before initiating transfers, ensuring smooth credit transfers.
The pre-validation implementation allows users to verify payee account details before sending payments, removing a key point of friction in cross-border transactions. This substantially reduces errors, exceptions and costs attributed to incorrect beneficiary information while fortifying the identification of potential fraud instances.
In traditional payment processes, errors like typos, formatting inconsistencies or incorrect beneficiary details frequently occur, leading to delays or failures. Investigations into these errors consume significant time and resources, proving both lengthy and costly for financial institutions. Moreover, flaws in authorised push payments pose a risk if people are tricked into authorising payments to fraudulent accounts.
Leveraging Swift’s pre-validation solution, users of Finologee’s banks and accounts management platform LYNKS will experience fewer transaction failures, elevated accuracy and expedited fund transfers, ensuring prompter payments and decreased delays. Additionally, this enhancement will bolster security measures, safeguarding users’ funds and fostering heightened trust among users.
The enhanced anti-fraud capabilities are aligned with recent regulatory measures such as Instant Payments and the PSD3/PSR package that both contain new means and requirements aiming at combating payment fraud techniques. These regulations will, amongst others, require IBAN-name checks, which is a feature that is also supported by the integration of the SWIFT pre-validation solution.
Georges Berscheid, CTO Finologee: “Finologee’s integration of Swift’s pre-validation solution underscores our commitment to improving the reliability and accuracy of payment services. This enhancement ensures that our clients can send payments confidently, backed by increased security measures. It’s a significant step toward enabling even smoother and more secure cross-border transactions.”
At the heart of this solution lie APIs, providing a live gateway to extensive data used for verifying and validating accurate payment information. This includes checking whether the beneficiary account is open and ready to receive funds and that the provided name matches the one on the account.
The service enables the sending bank to instantly verify account data via API, creating a seamless process where potential data or account issues are quickly identified and resolved in advance.
Powered by multiple sources, including live payee bank data, real-time historical transaction records and ongoing collaboration with domestic payee and third-party confirmation systems, Swift’s payee account verification solution increases accuracy and reliability.
Muriel Dewingaerden, Swift Account Manager: “Finologee beat a record of implementing the pre-val solution in the fastest way. We are delighted to have the fintech join our pre-val community of 52 live customers and 280 subscribers dedicated to financial crime compliance and fraud prevention.”
The integration of the Swift payment pre-validation solution underlines our solid cooperation with Swift and further strengthens Finologee’s position as a regulated entity with its own BIC code and recognised qualification as a CSP. This strategic approach reflects our commitment to maintaining strict compliance standards and offering enhanced financial services to our clients. It cements the company’s standing as a trusted entity, able to leverage cutting-edge solutions to meet the evolving needs of the financial landscape and to ensure secure and efficient transactions for its clients.
