The SOLO Network, a customer data-sharing and reusable-verification platform, is running a bank reliance pilot observed by FinCEN and coordinated with federal regulators.

The company said in a press release that the Treasury Department, Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corp. are involved with the pilot’s coordination, a move that could eventually create scale for reliance-based verification.

Banks and fintechs re-verify the same clients constantly, in areas such as KYC and identity documents, largely due to the lack of a standard for trusting and auditing each other’s verification work.

SOLO has insisted that bank reliance already exists in the regulatory framework and what is missing is the operational infrastructure to make it consistent and auditable across the ecosystem. SOLO proposed a system to standardize how completed verification gets represented, evidenced, and independently evaluated by the next institution. While each institution makes its own compliance call, SOLO removes the need to cover the same ground repeatedly.

While a FinCEN-observed pilot coordinated with top regulators suggests that the agencies are willing to watch, in real time, how a data-sharing and reliance framework performs at scale, it does not imply that regulators are ready to sign off on the process.

If SOLO’s process holds up under FinCEN’s scrutiny, it could provide smaller institutions with a credible way to scale onboarding volume without ballooning compliance headcount or lowering their verification standards.

SOLO said in its release that it has onboarded sponsor banks and fintechs representing more than 100 million consumer and small business profiles within its first year.