By Brandi Hamilton
Income and employment data is essential for loan decisioning, but not all data providers are created equal.
While technology advances are visible on multiple fronts, it’s sometimes challenging for lenders to realize these advancements. Too often, what appears to be innovative offerings don’t deliver as promised. Increasingly, lenders must go beyond the standard credit score to include additional data such as income, asset, and employment information when evaluating borrowers’ creditworthiness. Evaluating more data in a compressed time frame demands greater levels of automation on the lender side.
To help avoid potential pitfalls, lenders should look for an income and employment data provider with these five essential characteristics:
1. Trusted Data Sources
The quality of the data is essential. The onus is on the lender to ensure that their income and employment and income verifications provider meets the necessary standards in providing secure and trusted data that will be accepted for loan decisioning. It is also essential to understand where the data originates.
2. History and Experience
Consider how long the data solutions provider has been in business and how much experience it has in providing solutions specifically for your industry. A broad portfolio of solutions tailored for your unique business needs is vital for more informed decisions at each stage of the loan origination process.
3. The Scale of the Data
How far-reaching is the data? Where is the data sourced, and how current is it? How often is it refreshed? These are just a few questions lenders should ask providers, as each element is important for a comprehensive and current view of an applicant’s ability to repay a loan.
4. Delivery Options
Can the provider’s solution be accessed in a way that best fits your needs? Having access to more data in the best method for your business can bring a higher degree of certainty to the process.
5. “Always On” Stability
Reliability is critical for lenders. The move to digital interactions with consumers in every aspect of their lives requires a new level of stability and uptime. Choose an income and employment data provider with solutions and services that are always on and always available, empowered by cloud-based technology.
Verify Employment and Income Instantly
Real-time income and employment data help lenders make smarter, faster lending decisions that ultimately drive more revenue. The Work Number® database from Equifax is the largest commercial source of consolidated employment information.
With over 25 years of experience, The Work Number® delivers a streamlined and improved borrower experience and meet government-sponsored enterprise (GSE) requirements. Automated access to over 119 million active records from over 1.2 million employers can help lenders gain valuable borrower insights in real-time.
To learn more about how we can help you find a perfect fit for your needs contact us today for a free demo.