Improving Lender and Borrower Experience With Automated Verifications

In today’s digital landscape borrowers expect the loan decision process and customer experience to be seamless, fast, and modern. However, far too many financial institutions do not leverage instant verifications to meet consumer demand and instead rely on manual verification methods, which can be time-consuming and prone to errors. 

To meet this challenge, lenders must find ways to help streamline the employment and income verification process allowing for faster and more informed decisions and better risk mitigation. Utilizing The Work Number® can help lenders streamline their application and approval process. At any stage of the loan lifecycle, credentialed lenders with permissible purpose can instantly verify income and employment data from The Work Number without leaving their loan origination system. This can help enrich the experience between consumers and dealerships. 

Instant Verification of Income and Employment Help Convert More Loans

Auto lenders using instant income and employment data report over 2.45x conversion rates across all credit bands. Lenders can quickly respond to dealers with loan approvals, speeding up loan origination from application through funding without diminishing quality.  

In a complex economy, it is a common occurrence for borrowers to overstate or understate their income. Having borrowers self-state their income can cause friction in the lending process and impact access to credit and financing. With borrowers facing challenges like the current cost of automobiles, interest rates, and student loan payments, lenders must identify income discrepancies early in the application process to increase loan conversions.

Additionally, accessing income and employment verifications through loan origination platforms can help speed up the loan origination process from start to finish. Lenders can start saying “yes” to a larger pool of applicants by having a clearer view of creditworthiness and applicants’ propensity to repay loans.

Other key advantages of instant verification include 24/7 verification, which allows lenders to verify employment and income instantly even when verifying after hours. 

Providing Value Throughout the Lending Journey 

The application of instant verification through The Work Number from Equifax Workforce Solutions extends throughout the customer's journey. It is common for credentialed lenders with permissible purpose to use instant verification before and after lending decisions. At the start of the application, lenders can begin building a “top of wallet” relationship with their customers or members. At approval, instant verifications can help lenders provide low-friction lending and an improved customer experience.

Instant verification also helps allow for better portfolio management, especially when lenders have open loan lines such as home equity loans and open credit card accounts. Having the ability to better manage open accounts and their portfolio can help financial institutions understand risk and assist in smart segmentation and treatment strategies. Instant verification of income and employment can also help recovery strategies by helping verify current employment status and identify potential changes to employment status critical for managing credit risk and prioritizing accounts.

The integration of instant income and employment verification with loan origination systems offers significant benefits to both lenders and borrowers in today’s lending landscape. By leveraging real-time data access and streamlining verification processes, lenders can make more informed decisions, enhance user experiences, and mitigate risks. This can help lead to increased loan conversions, improve the borrower’s experience, and provide valuable insights for portfolio management.

Contact us to find out if your LOS is already integrated.

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