{"id":6123,"date":"2024-09-16T20:28:50","date_gmt":"2024-09-16T20:28:50","guid":{"rendered":"https:\/\/www.peeriosity.com\/shared-services\/articles\/?p=6123"},"modified":"2024-09-16T20:28:50","modified_gmt":"2024-09-16T20:28:50","slug":"the-many-ways-to-update-vendor-master-data-for-banking-information","status":"publish","type":"post","link":"https:\/\/www.peeriosity.com\/shared-services\/articles\/2024\/09\/the-many-ways-to-update-vendor-master-data-for-banking-information\/","title":{"rendered":"The Many Ways to Update Vendor Master Data for Banking Information"},"content":{"rendered":"

Introduction<\/strong><\/p>\n

One of the most complex parts of Master Data Management is controlling the process for making changes and updates to Master Data records.\u00a0 One example of where this is particularly important is in the process followed to create or update vendor bank account information.\u00a0 Unfortunately, this is a process that all too frequently includes fraudulent requests for account changes where imposters are attempting to steal payments.<\/p>\n

Many different processes have been common over the years, including requiring a copy of the account information on bank letter head, performing a penny test where a small amount is sent and receipt of that amount is verified by the vendor, and the direct approach of calling the vendor number recorded in the Vendor database to confirm the banking information via a phone call.\u00a0 In addition, there are variety of companies who claim to be able to complete this process accurately including DECENTRO (using penny-drop verification), Finicity, GIACT, LexisNexis, Orum, PaymentKnox, Paymentworks, Plaid, Tink Trustpair, Todlee, with other options likely to be available.<\/p>\n

Polling Results Review<\/strong><\/p>\n

Peeriosity-100 Polling was used by the Director of Strategic Initiatives at member company to understand the approaches followed by member companies to verify vendor bank account information. Responses were posted real-time, with visibility to company responses available to all Peeriosity members, allowing for direct communication with peers using Peeriosity\u2019s integrated Peer Mail capabilities.\u00a0 Using this approach, the poll author was able to quickly gain insights to his issue, which he described as follows:<\/p>\n

One area of potential fraud in AP is making ACH payments. We are interested in finding out what other companies are doing to ensure that the bank account they are using in fact belongs to the intended vendor and is not a fraudulent account. Information about vendors and\/or in-house processes you are using to help with this, and how those are working for you is appreciated.<\/em><\/p>\n

The first polling question asked about the primary vendor or in-house process used to validate vendor bank account information.\u00a0 Most companies, at 55%, perform the process inhouse by calling the vendor, and an additional 11% perform the process inhouse by using penny verification.\u00a0 \u00a0The balance of 34% of the companies use 3rd<\/sup> party solutions, with one company who has integrated the solution into their vendor portal. \u00a0Here are the details:<\/p>\n

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The second poll question asked about the level of satisfaction companies have with the process that is used.\u00a0 While 50% reported they were either very satisfied or satisfied, 28% reported their level of satisfaction was neutral, with the balance of 22% reporting they were dissatisfied.<\/p>\n

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Here are some comments from responding companies:<\/p>\n