A US bank account has a unique identifier that enables the bank to identify a user based on their first name and last name, the bank said Wednesday.
Users who do not have this identifier can be matched by other accounts, or by third-party services, such as the US Postal Service or the Federal Deposit Insurance Corporation.
The unique identifier is used to identify the person who made the request for access, according to the Federal Reserve’s website.
A user with the unique identifier can log in to a bank’s online banking services and use its mobile apps to send and receive payments, access online banking accounts, withdraw funds and deposit money, the Federal Financial Institutions Regulatory Authority said.
A customer can also add a name to a list of known users and their contact information to provide them with information about accounts and transactions.
Users can also choose to view their bank login information on the bank’s website, the Fed said.
Users will not be able to add a user to the bank log-in list or see their bank’s bank account number or account number, the agency said.
It’s the latest effort by banks to offer convenience to customers, who want to make payments online and also to help them manage their bank accounts, said David Dallen, an associate professor of financial technology at the University of Chicago Booth School of Business.
Banks have been trying to offer a better way for people to make and receive money, Dallens job as chief information officer at the Federal Trade Commission.
Dallens predecessor, John W. O’Brien, was charged in the case and is currently serving a two-year term on the commission.
The Federal Deposit Safety and Deposit Insurance Corp. oversees banks’ online and mobile banking services, and the agency has warned that allowing third parties to access bank accounts and make deposits poses a serious risk to customers.
“The risk of fraud is particularly high for consumers who want access to a safe, secure banking platform and a reliable and trustworthy payment system,” said Mark C. Fuchs, director of FDIC’s Financial Crimes Enforcement Network.