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FinTech Collective portfolio company Quovo announced an Autoverified Micro-Deposit feature for account verification, which parses a consumer's transaction history to tell when the deposits have been received and subsequently verify their accounts. This more user-friendly method of account verification allows customers to "set it and forget it", minimizing drop off and improving the use user experience.
Micro-deposits. In terms of effectiveness, they are a good tool to verify account ownership, streamline onboarding workflows, and facilitate ACH transactions. Micro-deposits are secure and offer a wide map of authentication coverage. They, however, are not UX friendly. Before customers can start investing, saving, or trading through your platform, they have to keep checking their accounts to see if the deposits have arrived and then return (if you’re lucky) to your app days later to confirm their amounts. During the multi-day waiting period from opening an account to when the test deposits actually arrive, the National Automated Clearing House Association (NACHA) estimates that at least 30% of customers drop off before completing the verification process. Many likely forget, while others lose their initial enthusiasm. Even for those who complete the process, the user journey has been less than smooth.
