iPiD Launches AI-Powered Name Matching Tool for Verification of Payee

Payment identity network iPiD has partnered with Microsoft to develop an AI-powered name-matching tool designed to streamline Verification of Payee (VoP) processes. The solution addresses new European regulations, effective October, which require financial institutions to verify that payee names match registered account details to combat payment scams.

Under the new rules, banks must classify name matches into three categories: match, partial match, or no match. Partial matches, often caused by spelling errors or alternate naming conventions, pose challenges by potentially revealing unintended payee information, raising GDPR concerns.

iPiD’s tool, built using Microsoft Azure OpenAI Service, aims to balance precision and compliance while improving efficiency. The AI-driven algorithm reduces false negatives and ensures adherence to data privacy requirements.

Ivan Chong, CTO of iPiD, stated, “Names carry identity and meaning. Our solution combines the linguistic depth of large language models with speed, efficiency, and adaptability, thanks to our collaboration with Microsoft.”