US Banks and Fintechs Test Reusable Identity Checks

U.S. banks and fintech companies typically conduct identity checks independently, forcing customers to resubmit information even when another regulated provider has already verified them. A standardized, reusable verification record could reduce onboarding costs and abandonment while preserving a core compliance principle: each receiving institution remains responsible for its own know-your-customer, anti-money-laundering and risk decisions.

A pilot being observed by U.S. regulators is testing whether banks and fintech firms can exchange standardized identity-verification records and avoid checks that drive prospective customers away. Recipients would retain discretion to accept the record, reject it or request additional review under their own policies. The report did not identify the participating institutions or disclose a launch date, testing timetable, customer count or financial value for the program.