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X9B Financial Services Operations Subcommittee – Project Status

Call for Experts

X9.147 Audit Confirmation and Account Verification Exchange

Project Description| In todays environment audit confirmations (customer-authorized requests for account data for use in a customer sponsored independent audit), deposit verifications and account verifications are highly manual and are delivered in multiple formats by through many different channels (direct, third party vendor, etc.).
The information being requested through these activities are often quite simple to fulfill, but very time consuming especially during peak season (January through April each year) where volumes spike by the hundreds of a percent. Most of these requests are for specific account balances on a specific day, verifications of deposits within a specific date range, or address verifications. This data is used by independent auditors to verify the records of their clients, but is also used for benefits eligibility inspections, supplemental verifications for lease qualifications, etc. While the data requested is easy to acquire, the vast array of formats and methods used to request this information makes a simple process manual and prone to error. 

Project Need| Developing a data exchange that could map directly to a financial institutions deposit system has the potential to almost fully automate this activity and provide expedited service to the end customer, and the services the products and services they are attempting to acquire through these verifications. This could also dramatically decrease the impact to the financial institution during audit peak season.

Stakeholders| Financial institutions, their deposit customers, independent auditors that are hired by those customers, leasing agents, state and local governments issuing and verifying benefit eligibility.

The X9B5 Confirmations and Verifications Workgroup will be developing this standard. This workgroup develops data exchange standards that enable the automated transport of audit confirmation and account verification requests. The X9.147 project seeks to enable the presentment and ingestion of audit confirmation and account and deposit verification requests into a financial institution as well as the financial institution’s response to those requests. The standard will establish the file sequences, record types, and field formats to be used for the electronic exchange of these requests. In furtherance of this goal, X9.147 is seeking input from individuals with backgrounds in audit confirmations and deposit and account verifications, technical backgrounds, and those with extensive experience working through the entire life cycle of the standard drafting process.

To participate in the development of this standard contact us.

X9.144 Production Subpoena Orders Exchange

Project Description This standard is currently being drafted by the X9B4 Legal Orders workgroup. In today’s environment, subpoenas are served in multiple formats by federal, state, and local government agencies and law firms. These documents are served via mail, email, fax, or physically served to the bank. When the bank receives the orders the process for responding and fulfilling the order is highly manual, time-consuming, and prone to errors, and there are limited areas where automation is applied. By creating a set of standards for electronic file formats for the different request types, benefits will be realized by both the subpoena requester and responder through automation. 

Project Need| There is a growing volume of requests due to overall increases in regulatory and legal environment. Standards in this area will bring about the following benefits:

  •  Reduced errors;
  •  Improved quality of the process and resulting outputs;
  •  Improved tracking and management of service levels;
  •  Reduced operational costs (after initial investment; business case TBD);
  •  Improved records management; and
  •  Improved fulfillment time quicker results to the requester (images provided and fees collected).

Stakeholders| Most financial institutions and Agencies in the U.S. are stakeholders processing subpoena orders. 

X9.144 is in the beginning stages of development and is working to complete a draft of the standard by the summer of 2021. In furtherance of this goal, X9.144 is seeking input from individuals with backgrounds in legal services, subpoena compliance, those with technical backgrounds, and those with extensive experience working through the entire life cycle of the standard drafting process. 

To participate in the development of this standard contact us.