How Fintech Money Transfer Apps Verify Identity Without Slowing Down the Transfer

From Tang Dynasty’s fei chien (flying money) and the Knights Templar’s letter of credit to the faster, modern money transfer methods, there has always been a need to vet and verify both recipients and senders when moving money across borders.

Where ancient systems could take weeks, traditional banks, using SWIFT, take a few hours to a few days to exchange messages with intermediary financial institutions to verify senders and receivers.

But as technological advancements streamline processes across industries to deliver faster results, users within money transfer markets now expect instantaneous services across the board, from account setup to funds delivery.

Although seemingly an impossible feat in the past, fintech money transfer apps have made users’ expectations a reality.  This article examines the mechanisms fintech apps adopt to verify users and provide secure money transfer services without adding extra steps in the process.  Phone Number as the Entry Point    Fintech money transfer operators use existing, SIM-based databases/APIs managed by mobile network operators, global telecommunication data aggregators, intelligence networks, and central banks to verify the identity of users.