3 Facts Lenders Need To Know About Employer-Provided Income Data

Introduction

Traditionally, manual methods of income and employment verification have been very cumbersome and time-consuming. It involved contacting each applicant or their employers to verify their payslips or banking credentials and following up over regular intervals to ensure that the Payroll data collected remains up to date and relevant. Apart from this being a lengthy process, it also had a high margin of error, which often rendered the data unreliable.

However, with the increasing competition and rising labor costs, lenders and financial institutions have started seeking more efficient methods of payroll verification. The rising demand for technology-driven convenience has led FinTech start-ups to develop automated verification processes powered by APIs. Since present-day consumers cannot afford the delays, lenders have started leveraging digital income and employment verifications to ensure that the entire process of payroll verification can be made smooth and error-free.

What Should Lenders Do Next?

Identifying areas of concern is crucial in finding an apt solution for any problem. For example, what data sources or data ranges can best align with their business needs? These questions help lenders identify the specific factors they need to consider while opting to shift to automated payroll verification.

Here are the 3 things to consider while using Income data:-

1. Credit Scores never show the whole picture