Lending is increasingly fast and digital. An application is approved, and funds are disbursed to the borrower's nominated account — sometimes within minutes. That speed is great for customers, but it leaves a window for fraud if the disbursement account is not the borrower's.
Two points of risk
- Disbursement: funds could be sent to an account that does not belong to the approved borrower.
- Repayments and refunds: paying back to an unverified account risks misdirected money.
- Application fraud: a mismatch between applicant identity and account holder is a useful signal.
Approve a person, pay an account
Identity checks verify the borrower; Verification of Payee verifies the account they are paid into. Lending needs both to be sure money reaches the right hands.
Where VoP fits the loan journey
Run a Verification of Payee check on the disbursement IBAN before releasing funds. A name mismatch with the approved borrower is a stop-and-review event, and the outcome becomes part of your audit trail for the loan.
Disbursement you can trust
RoxPay's Verification of Payee API gives lenders a real-time name check that fits even instant-decision journeys, so fast disbursement does not mean blind disbursement.