What Is Name Matching And Why Is It Important To The Financial Industry
Name Matching
In today’s world, what’s in a name can be very, very important in terms of whether or not you are able to handle your financial transactions in the manner you expected.
Even though state-of-the-art technology is now available to verify your identity, the fact is human error still plays quite a role when mistakes are made.
To solve this problem, name matching is relied upon now more than ever.
If you’re wondering what this is and why it’s so important to the financial industry, here are several key reasons.
Classified as a Criminal
Since name matching is the process of making sure a person’s name is spelled correctly when searching various databases, misspellings or variations of a certain spelling can have you inadvertently being classified as a criminal.
This happens too regularly with credit reports, where credit reporting agencies may flag you as a criminal, leading to complex legal consequences.
Blocking You from Your Accounts
In other situations, errors regarding the spelling of your name can result in a bank or other financial organization blocking you from gaining access to your accounts.
Because of this, fuzzy name matching is a critical aspect of today’s sophisticated recognition technology.
Along with being blocked from your accounts, errors can also result in a financial entity allowing unauthorized individuals to access your accounts.
Money Laundering
One of the biggest and most lucrative operations of organized crime and terrorist organizations is money laundering.
When the money trail cannot be correctly followed, authorities have little if any way of knowing exactly what these groups may be planning next.
Name matching technology can change this since it can eliminate mistakes about how names are spelled.
This can prove challenging in a world economy since it can easily leave out various name elements, nicknames, or transliteration variants.
Added to Watch Lists
If you think airlines are the only ones relying on watch lists, you are mistaken.
Banks and other financial institutions also compile and use watch lists based on information from law enforcement and other agencies.
Should a mistake be made in the spelling of your name, you may find yourself placed on a watch list that can turn your life upside down in a hurry.
Unfortunately, once your name appears on a watch list, removing it may be easier said than done.
As machine-learning algorithm technology becomes more widespread regarding name matching, you can expect to see much higher levels of accuracy, leading to fewer mistakes being made within the financial industry.
Category: Banking
