US-based fintech software platform Sila has partnered Open Finance company MX to improve bank account verification via processor tokens. The two companies announced that they have successfully integrated MXapi Processor Tokens which will allow Sila customers to verify their bank accounts, account data, and balance checks in an easier and more secure way.

According to MX, verifying a bank account is an important element in any account opening process. During this process, a customer’s name, account, and balances are verified, but the verification process involves manual entry or microdeposits, which can be time-consuming and even frustrating for end-users. Consequently, the industry is moving away from these error-prone methods of manually entering account and routing information, and towards token-based authentication.

Tokenized authentication with MXapi Processor Tokens does not involve sharing and storing sensitive user data when initiating money movement, and it also lowers the risk of fraud. Through this partnership between Sila and MX, Sila customers gain access to MXapi Processor Tokens in order to access token-based account verification services and perform account balance checks. MX officials have stated in the company press release that these processor tokens were designed to allow their partners and clients to verify consumer financial data without being exposed to the risks of handling and storing sensitive information.

More information about Sila and MX Sila is a US-based fintech software platform that provides payment infrastructure as a service, an important element for all companies that wish to integrate with the US banking system and blockchain securely and in compliance with applicable US regulations. Sila’s most noteworthy API offerings tie in with banking, digital wallets, and ACH payments. MX is a US-based SaaS company that builds data-driven products for banks, credit unions, and fintech innovators.

According to MX, the company creates solutions that help its partners and their customers to understand and manage their finances more easily. Other recent MX partnerships In September 2022, US-based payments platform Dwolla has included Open Finance solutions provider MX in its portfolio of Secure Exchange partners. This collaboration on a tokenized offering provides Dwolla’s clients and reseller partners with a flexible way for them to access account verification services using MXapi Processor Tokens.

The two companies initially partnered in July 2021 to automate a micro-deposit verification process. The service offers an extension to its intelligent account verification solution, available through the MXconnect widget or MXapi, making it easier for customers to securely connect any depository account. In October 2022, MX partnered with Celero to integrate MX’s personal finance management tools (PFM) into the latter’s digital banking solution.

The MXinsights PFM platform delivers real-time insights for a consumer based on their personal financial portfolio at their credit union. The agreement allows Celero credit union clients to integrate with the MX platform to provide their members with secure financial guidance about budgeting, spending, debt management, and account aggregation online and through a mobile banking app. .