Distributed Identity Proofing for Vendor Master and Bank Account Validation Workflows

Abstract

Ensuring the authenticity and integrity of vendor master data is essential for preventing payment fraud, reducing exception handling, and improving financial control reliability in enterprise procurement and accounts payable environments. Traditional vendor onboarding workflows rely heavily on vendor-provided documentation and manual review, which introduces inconsistency, delays, and elevated risk of misdirected payments. This study presents a distributed identity proofing and bank account ownership verification model that validates vendor legal identity, tax credentials, registered address, and banking information against authoritative external data sources. The approach incorporates confidence scoring, verification provenance, and lifecycle revalidation to ensure ongoing accuracy of vendor records. Experimental results demonstrate significant reductions in onboarding processing times, decreased payment exception rates, and strengthened audit traceability. The findings highlight the operational and governance advantages of integrating verification logic into vendor master data management as organizations increasingly digitize financial workflows.