Deutsche Bank becomes first to deploy payee account validation service
Deutsche Bank announced that it has rolled out Swift’s payee account validation service, which would help banks verify payee account details before sending an international payment.
This is probably a key service for banks, as one of the main disadvantages of sending international payments through banks is the fact that if mistakes are made with the recipient’s account details, the payment will not reach the beneficiary and then it becomes very difficult to trace the funds as there is a high probability that the funds will be lost in the system.
Difficulty finding funds
The bottoms are not traced at all or the tracing of the bottoms takes a long time, which causes many problems. If users and banks can verify the beneficiary’s details, then it would be very easy to validate them before payment is made, thus also ensuring the beneficiary’s validity, which in turn would secure payments.
It is reported that around 70 banks have signed up for this service so far, but Deutsche Bank was the first to roll out this service globally and many more banks are expected to follow suit fairly quickly. This service can not only be used by banks for their internal needs but also used for validation requests from users sending payments.
BAV solves key issues
Jose-M Buey, Global Head of Core Platforms and Account Solutions, Deutsche Bank Corporate Bank, said: “The BAV service not only solves a key market problem that prevails today, but also brings operational benefits. important in terms of end-to-end efficiency. and reducing fraud to our corporate clients. It’s also a clear example of how API technology can be used to create an innovative solution that aligns perfectly with our strategy of building an account platform based on real-time APIs.
Deutsche Bank simply built an API on top of this service offered by Swift as a result of which each branch of the bank simply had to implement it on their own in a quick manner, which they were able to achieve and that helped it deploy this service before other banks.