Sandbox Banking has partnered with financial services company Plaid to enhance automated identity verification and bolster banking solutions in a move to tackle the main challenges in the financial sector.

Based in the US, Sandbox Banking has developed an integration platform as a service (iPaaS) banking automation solution called Glyue. The solution is leveraged by North American banks and credit unions for accelerating the process of digital transformation.

Through the partnership, Sandbox Banking and Plaid aim to integrate Glyue’s Customer360 module and customer experience workflows with the latter’s verification solution.

Plaid partnerships head Tamara Romanek said: “With consumers increasingly turning to digital solutions to manage their finances, it is critical that financial institutions are properly equipped to protect and maintain their customers.

“Partners like Sandbox Banking offer accessible innovation for financial institutions, which is a key element of impending open banking regulation.”

By utilising Plaid’s offering, Sandbox Banking will offer financial institutions an extensive portfolio of tools to improve customer or member engagement and reduce risks.

Financial institutions will also be able to reinforce account security as banks and credit unions invest in transformation strategies and digital banking.

Besides, financial organisations can build comprehensive and secure ecosystem that brings together intelligent virtual assistant (IVA), virtual call centre, interactive voice response (IVR) with the core banking software.

Sandbox Banking partnerships vice president Kelsey Saia said: “Our collaboration marks a pivotal moment in the evolution of financial technology, uniting two industry leaders to drive innovation, elevate end user experiences, and reinforce security measures.

“Bolstering the era of digital transformation in banking, this partnership is shaping a tech experience that is not only secure and efficient but also aligned with the dynamic needs of modern account holders and institutions alike.”

According to Sandbox Banking, Customer360 will easily combine customer data across platforms to guarantee real-time updates.

Plaid’s identity verification tool is expected to bolster onboarding processes, avoiding identity theft, and ensuring creation of secure accounts.

The collaboration will also offer constant monitoring and fraud prevention, data syncing for better risk detection, and frictionless account verification in real-time.

Sandbox Banking said that financial firms will also be able to benefit from a unified, customer-centric approach through the partnership.