Salt Lake City-headquartered fintech firm, Finicity [1], has announced the release of a new verification of income and employment (VOIE) solution for lenders. The new solution uses a patent-pending TXVerify™ technology that will speed up borrower verifications and further advance the industry's shift toward a fully digital experience.
“Our VOIE is expected to become the new gold standard of income and employment verification,” said Steve Smith, CEO, Finicity. “We know it will be met with fast adoption by key industry players who aim to be on the cutting edge of lending technology. With VOIE building upon our current verification of assets solution, lenders will now be able to use Finicity as a one-stop-shop for digital verification.”
The solution digitally extracts a borrower’s pay statement data from the paystub and then cross-verifies that key data with their income transactions from their financial institutions. Enabled by its TXVerify technology, this detailed vetting process creates a real-time picture of an applicant’s income and employment for fast, accurate reports.
The solution does this by leveraging the highest value data—direct from banks—along with a scan, photo, or PDF of a borrower’s paystubs. This process significantly shifts the current paradigm from a mostly manual process to one that is fully digital, all while reducing fraud and increasing confidence in the underwriting process.
The technology for this solution accesses real-time data gathered directly from an employee’s bank accounts. Finicity uses direct deposit payroll data, which represents over 90% of American workers, to improve the success rate of an automated income and employment verification.
While the success rate for existing automated solutions hovers around 15% to 25%, Finicity said that its VOIE solution is anticipated to provide successful income and employment verification coverage of over 70%. Digital verifications can shave as much as 12-14 days off the origination process, helping to push the industry to a rapid closing with increased accuracy, while improving profitability.