US-based technology-driven online bank TAB Bank has teamed up with corporate payouts platform Onbe to modernise its process of disbursing refunds after account closures.
Under the partnership, TAB Bank will use Onbe’s payout gateway to deliver digital refunds.
The gateway will provide customers with a choice of payment methods, including instant virtual cards, improving convenience and satisfaction during account closure.
Onbe’s solution will replace the bank’s checks, which average up to $12 each to issue, with more secure and cost-effective payment options.
Onbe chief growth officer Tracy Monson said: “We are proud to partner with TAB Bank to provide a modern refund experience that prioritises the recipient’s needs and puts funds in customers’ hands efficiently and securely.
“Transitioning from checks to faster, more secure payment methods benefit banks and their customers by reducing risk and complexity while meeting the growing demand for digital payments.”
TAB Bank chief operating officer Michael Palmer said: “In partnership with Onbe, we have upgraded our refund methods to be as fast, modern and convenient as the other experiences we offer. We are excited to bring our customers a more intuitive, digital-led refund process.”
According to Onbe’s research, 92% of consumers prefer digital and electronic payouts, while account balance refunds are traditionally paid by check.
Also, 65% of organisations reported check fraud last year, and businesses, financial institutions and consumers are looking for more secure, direct payment methods.
The payout platform said that digital refunds delivered through email will provide peace of mind for TAB Bank’s customers and reduce the bank’s fraud risk and expense.
Amid the increased focus on escheatment and compliance practices, banks can mitigate risk and reduce the burden of unclaimed property by ensuring accurate, and effective refunds.
Onbe allows its clients to replace checks with digital payments to minimise risk in refunds while simplifying the escheatment process to lower the risk and cost for banks.
Also, its refund solutions will strengthen TAB Bank’s compliance while delivering faster, more convenient customer experiences, said Onbe.
