Digital Loan Software Provider Blend Introduces Income Verification Function
Digital lending software provider To mix together (NYSE: BLND) notes that the way people work – and make money – is very different from what it was in the past. However, revenue verification solutions have not been able to catch up with the latest developments, claims the Fintech company.
As Blend noted in a blog post, FICO and W-2 scores are no longer able to provide a complete picture of a consumer’s ability to “pay off a loan and [their] dependence on them has left behind many consumers with non-traditional sources of income. “
The Blend team adds:
“True to our mission, we are delighted to take another step forward in increasing access to the world’s financial services. Today, we are announcing Blend Income Verification, a comprehensive digital income and employment verification solution designed to work with the full range of products available on Blend’s cloud banking platform.
Blend’s management also mentioned that they are helping finance executives modernize their revenue verification strategy so they can “feel confident saying ‘yes’ to more people.”
More than 25 clients, including American Federal Mortgage, IBC Mortgage, Lennar Mortgage and one of the five largest US banks have now “subscribed to the product,” reveals the Fintech company.
Fintech adds that existing digital solutions for revenue verification are “fragmented.” According to Blend, there is no one simple solution that can “meet all forms of employment”.
Blend further notes that the data is increasingly available and that financial service providers want to “leverage it to improve verification.” In order to connect these disparate data sources, lenders must “devote considerable energy to research, diligence, contracting and industry development if they are to build their own solution,” the company explains. Fintech.
As mentioned in the blog post:
“One of the reasons lenders are trying to concoct these solutions is to consider how very different the job looks today compared to just ten years ago. With the increase in the number of consumers seeking to use non-traditional sources of credit, it is now imperative for lenders to be able to access additional types of data to create a more complete consumer profile. Additionally, having the ability to use existing information a lender has about a consumer, including bank transaction data, will allow them to increase coverage.
Not only are the existing revenue verification solutions not complete, but they are also not well integrated into the application flow, the update noted while adding that configuring solutions for several different workflows that using different back systems can be ‘overwhelming and time consuming. . “
Blend recommends adopting a platform that integrates revenue verification into application flows between products, as it helps reduce this headache. It also allows lenders to “proactively and organically recommend the right product or offering using real-time data insights,” the company explains.
This enables financial services companies to “make better-informed lending decisions more efficiently, serve more customers, and ultimately deliver products that meet or exceed the needs and expectations of consumers,” he said. writes the company in a blog post.
The power of mixed income verification
The Blend team is pleased to confirm that Blend Income Verification will be able to offer instant verification “for the full range of products available on our cloud banking platform”. They see it as the “easy button” for income verification.
Minimize delays, maximize efficiency
As Blend noted:
“To maximize coverage with a single, aggregated solution, Blend Income Verification will leverage leading providers of revenue data and audit strategies, including payroll direct to source and, later, tax and derivative data. active. We plan to support the various verification methods you might need, including manual checkouts in cases where there is no digital coverage.
By bringing together and unifying data providers, Blend aims to reduce costs for lenders and provide them with a complete picture of borrowers in “an instant, without the need for tedious manual processes.”
“We will work to continually evolve our solution to include new data providers so lenders don’t have to manage separate contracts. Blend Income Verification will reinvent – and reduce – working loan teams to verify income. “
As stated in the announcement, Blend Income Verification will be “integrated with the Blend experience through a streamlined consumer workflow”.
A recommended verification path “will fill up based on a consumer’s unique financial situation, and then they can validate that their data is correct before continuing with the application process,” the company said.
As this enhanced experience will be available to consumers through a lender’s product portfolio, consumers will be able to “enjoy consistently great – and potentially lower cost – trips for all of their financial needs.”
The ad also mentioned that Andrew McElroy, first vice-president at US Federal Mortgage, declared:
“Our goal is to reduce friction in the application process by minimizing the number of borrowers who have to upload documents. Blend allows us to extend our coverage of Instant Income Verification, contributing to a seamless borrowing experience.
To learn more about this update, click here.