Deutsche Bank becomes first to roll out Beneficiary Account Validation service
Deutsche Bank has announced that it has rolled out Swift’s Beneficiary Account Validation service which would help the banks to verify the account details of the payee before an international payment is sent out.
This is likely to be a key service for the banks as one of the major disadvantages in sending international payments through banks is the fact that if some mistakes are made with the beneficiary account details, then the payment would not reach the payee and then it becomes very difficult to trace the funds as it is quite likely that the funds are lost within the system.
Difficulty in Tracing Funds
The funds are not traced at all or it takes a very long time for the funds to be traced which causes a lot of issues. If the users and the banks can verify the details of the beneficiary, then it would be very easy to validate them before the actual payment is made thus ensuring the validity of the beneficiary as well and this would in turn make the payments safe.
It is reported that around 70 banks have signed up for this service so far but Deutsche Bank has been the first one that has rolled out this service globally and it is expected that many other banks would also follow suit pretty quickly. This service can not only be used by the banks for their internal purposes but also used for validation requests from the users who send the payments as well.
BAV Addresses Key Problems
Jose-M Buey, global head, core platforms, and accounts solutions, Deutsche Bank Corporate Bank, said: “The BAV service not only addresses a key market problem prevalent today but also brings significant operational benefits in terms of end-to-end efficiency and fraud reduction to our corporate clients. It is also a clear example of how API technology can be used to create an innovative solution that perfectly aligns with our strategy to build a real-time API-based accounts platform.”
Deutsche Bank simply built an API on top of this service offered by Swift as a result of which, each branch of the bank had to just implement it on their side in a quick manner which it has been able to achieve and this has helped it to roll out this service ahead of the other banks.
