The new solution will mean identity information can be matched with transaction data provided through Open Banking in real time.

It hopes to reduce fraud, allowing credit providers using Open Banking to confirm that account information belongs to the person applying for credit, and not a potential fraudster.

Equifax bank account verifier compares the sort code and account number taken from the customer’s online bank account to its current account database.

The name and address associated with the bank account are then compared with the details provided by the customer during the credit application.

This links the transaction data back to an individual, performs an anti-impersonation check and helps verify the customer’s identity.

HSBC UK has already adopted the Open Banking solution and is testing the verification process as part of its on-boarding solution to streamline its application process.

Jake Ranson, CMO at Equifax UK, said that since the implementation of Open Banking, it had seen more consumers willing to share their current account data to access new products and services.

“In our work with clients to develop their Open Banking solutions, we uncovered an important gap in the process as identity information isn’t provided through application programming interfaces (APIs). 

“Equifax bank account verifier (EBAV) closes this gap, helping the industry make the most of the new data sharing in a more secure environment.”

Emma Steeley, CEO at consents.online, added: “Combining the Open Banking data with Equifax bank account verifier has enabled us to launch the first live ID check in the Open Banking market. 

“It is extremely exciting and showcases our continued evolution in our strategic partnership to deliver the best-in-class Open Banking solutions.”