WALDO is Straddle’s proprietary identity matching algorithm designed to securely and accurately verify that a customer’s identity matches the ownership details of their bank account.
Built on LSTM-based natural language processing algorithms and deployed through a cloud-native architecture, Waldo provides a robust API delivering high-accuracy name matching with exceptional performance. By accounting for cultural, typographical, and formatting differences, Waldo helps organizations improve data quality, streamline operations, and enhance the customer experience.
WARNING: NERDS ONLY
WALDO stands for Weighted Algorithm for Legitimate Data Ownership. It is Straddle’s proprietary identity matching algorithm designed to securely and accurately verify that a customer’s identity matches the ownership details of their bank account.
Determining if two name strings refer to the same individual is deceptively complex. Traditional string comparison methods often fail to capture the multidimensional nature of name representation, resulting in high rates of false positives or false negatives.
Name variations arise in many ways. Common names frequently have multiple accepted spellings, such as “Jonathan” vs. “Johnathan,” and informal nicknames (e.g., “Elizabeth” vs. “Liz,” “Beth,” or “Betty”) complicate matching further. Cross-cultural factors introduce additional layers, as names transliterated from languages with different alphabets can appear under multiple spellings (e.g., the Russian “Михаил” might be “Mikhail,” “Michael,” or “Mihail”). Variations in name ordering, suffixes (“Jr.,” “Sr.,” “III”), and honorifics (“Dr.,” “Prof.”) also add complexity. Finally, typographical errors and data-entry mistakes create further inconsistencies.
This multidimensional challenge leads to significant business costs when simplistic approaches produce poor results. Waldo is designed to address these complexities, facilitating more accurate name recognition and reducing operational risk.
Data Inconsistencies
Variations in name spellings, typos, nicknames, and cultural naming conventions can lead to mismatches.
Fraudulent Activities
Malicious actors may attempt to connect bank accounts they do not own.
Regulatory Compliance
Financial regulations require stringent identity verification processes to prevent money laundering and other illicit activities.
User Experience
Traditional identity verification methods can be intrusive and negatively impact conversion rates.
Waldo first normalizes input names by:
This step removes superficial formatting discrepancies, reducing false negatives that arise from differences in casing, punctuation, or whitespace.
Waldo generates multiple plausible variations for each name, reflecting common changes seen in real-world data:
By comparing an expanded set of variations for each input, Waldo finds matches that simpler approaches would overlook, reducing false negatives.
name1
and name2
, Waldo applies specialized string, cultural, and phonetic comparisons from the HMNI library.This multistage process yields substantially higher accuracy than simple string comparison methods, crucial for real-world data sets prone to typographical errors and diverse naming conventions.
Customer Identity Verification with Straddle ID
Bank Account Connection via Bridge
Identity Matching with WALDO
Outcome Determination
WALDO significantly improves security for merchants, financial institutions, and payment providers. Its advanced name matching technology ensures that only rightful account owners can link and use bank accounts for transactions, bolstering A2A (account-to-account) payment flows by verifying ownership in real time.
Beyond initial account connection, Waldo continuously verifies ownership over the lifecycle of a connected account, detecting changes in legal names or multiple authorized users. This constant vigilance reduces the risk of account takeovers and safeguards against fraudulent connections.
Waldo acts as a frontline fraud detection tool by instantly spotting mismatches between verified identity details and bank-account ownership records. Subtle name variations associated with legitimate users are correctly recognized, whereas truly inconsistent identities are flagged before transactions occur.
Because Waldo accurately accommodates name variations, it also reduces false positives in traditional fraud-detection systems. Straddle can maintain high security standards without unduly inconveniencing legitimate customers.
Despite its sophisticated security, Waldo remains invisible to legitimate users:
Customers enjoy a frictionless experience while benefiting from heightened security measures.
Waldo underpins compliance efforts with regulations such as KYC (Know Your Customer) and AML (Anti-Money Laundering). By ensuring accurate identity matches and reducing false positives, it eases investigation workloads, streamlines watchlist checks, and empowers organizations to focus resources on genuine risks. Waldo’s refined approach also supports ongoing customer due diligence by detecting subtle naming inconsistencies that might indicate attempts to bypass controls.
Straddle will continue advancing Waldo to meet emerging demands:
These future capabilities underscore Straddle’s commitment to delivering the industry’s leading solution for name matching in increasingly global and digital markets.
How does WALDO handle cultural differences in names?
WALDO accommodates various cultural naming conventions by recognizing different name orders, handling multiple surnames or given names, and using phonetic and linguistic models to interpret names accurately.
What if a customer's name doesn't match exactly with the bank's records?
WALDO accounts for minor discrepancies and variations. If the differences are within acceptable thresholds, the algorithm can still determine a match. Significant discrepancies may result in a mismatch, requiring customer verification.
Is WALDO compliant with data protection regulations?
Yes, WALDO adheres to data protection regulations such as GDPR and CCPA. It uses data minimization principles, and all personal data is encrypted and handled securely.
Does WALDO affect the speed of the transaction process?
WALDO is optimized for real-time processing and does not introduce noticeable latency. It operates transparently, ensuring a seamless user experience.
How often is WALDO updated?
WALDO’s machine learning models are regularly updated to incorporate new data and improve accuracy, adapting to emerging patterns and trends in identity data.
WALDO offers a dynamic solution to the challenges of accurately matching personal names in modern payment systems and data-driven environments. The algorithm synthesizes advanced linguistic processing with domain-specific rules, delivering high accuracy and real-time performance.
Architecturally, Waldo embodies best practices in software design—cleanly layered, modular, and cloud-native. Comprehensive monitoring and logging tools further ensure reliability in production.
From a business standpoint, Waldo drives tangible value by increasing data quality, improving the customer experience, mitigating fraud, and streamlining compliance processes. As digital transformation accelerates worldwide, name matching plays a pivotal role in ensuring secure and reliable account-to-account payments across industries.
Thank you for taking the time to learn about WALDO. We are committed to supporting you in delivering secure and efficient payment solutions.