Yodlee, the leading provider of personal financial management (PFM) and integrated payments solutions, and Andera, the #1 provider of online account opening and funding solutions, today announced that they have signed nearly 100 new banks and credit unions since launching their partnership in August, 2007, a full 70% of which are now utilizing Yodlee technology to help verify funding accounts in real-time.
The Yodlee-Andera partnership integrates Andera's leading account opening solution with Yodlee's patented "instant" AccountVerification technology, which confirms account ownership, available balance, and other pertinent information in real-time, for quicker decisioning and dramatically reduced risk and abandonment. In fact, Yodlee's real-time AccountVerification has reduced abandonment 25% over challenge deposit verification alone.
Yodlee CEO, Anil Arora, explained: "Yodlee's account verification process gives financial institutions real-time account information in seconds. This is a clear benefit over traditional verification methods, which can take days, or longer. Because an individual's true financial profile can change faster than traditional verification systems are able to support, a capability like Yodlee AccountVerification is proving extremely valuable, both in terms of managing risk and completing the account opening and funding process in a single user session. That 7 out of every 10 new customers elect to use 'instant' AccountVerification in preference to legacy verification methods is very strong confirmation of its value."
Javelin Strategy & Research's May 2009 report "Online Account Opening Consumer Analysis and Vendor Comparison" cites that "the Andera/Yodlee combination stands out in the market because of the expertise, variety of packages, customization and funding verification options". Javelin further quantifies the significance of this capability, estimating that banks and credit unions spend about $60 to manually process each application--four times the cost of an automated online application.
With Andera, financial institutions adjust maximum deposits from applicant to applicant based on varied risk management criteria. Financial institutions are required to pay a fee for every successful completed application, but they pay nothing for applications that are rejected or abandoned.