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Top Four Ways Income and Employment Verification Can Empower Financial Institutions

by Ted Wentzel 4 min read February 14, 2024

As a community bank or credit union, your goal is to provide personalized care and attention to your customers and members while effectively managing regulatory requirements and operational efficiency. By incorporating tools such as income and employment verification, you can streamline the approval process for both account holders and prospects. With the ability to validate their information in seconds, you’ll be able to make well-informed decisions faster and accelerate conversion. In this blog post, we will explore the empowering impact of income and employment verification on financial institutions.

  1. Better Data, Better Decisions

Choosing a verification partner with an instant employer payroll network allows financial institutions to access reliable and up-to-date income and employment information for confident decision-making. With accurate and timely data at their fingertips, you can gain a deeper understanding of your account holders’ capacity to pay, a critical component to assessing overall financial health. This not only helps mitigate risk but also helps you serve your customers and members more effectively. There are additional benefits to partnering with a verification solution provider that is also a Credit Reporting Agency (CRA) offering FCRA-compliant technologies. These organizations are well versed in compliance matters and can help you more effectively mitigate risk.

  1. Streamline Approval Times and Remove Friction

When developing your verification process, it is advantageous to adopt a waterfall or multi-step approach that encompasses instant verification, permissioned verification, and, as a last resort, manual verification. This tiered approach will significantly reduce approval times, manage costs effectively, and streamline the approval process. Instant verification relies on advanced technology to provide swift and efficient results. In cases where instant verification is unavailable, the process seamlessly transitions to permissioned verification, where explicit consent is obtained from individuals to access their payroll data directly from their respective providers. Lastly, manual verification involves collecting payroll and employment documents, which is a more time-consuming and costly process. By implementing this comprehensive approach, you can enhance the efficiency and effectiveness of your verification process while maintaining the integrity of the results.

  1. A Flexible Solution

Community banks and credit unions are integral to the lending industry. It is crucial for them to select a versatile verification solution that can keep pace with the approval speed of both regional and large banks. Given that community banks and credit unions operate in smaller geographic regions compared to larger institutions, it is imperative for them to have a verification solution that is versatile and can be applied across their entire spectrum of loan offerings, including mortgage loans, automotive loans, credit cards, home equity loans, and consumer loans. This adaptability enables community banks and credit unions to consistently serve their account holders and enhances their ability to compete effectively with larger financial institutions. With a robust verification solution in place, community banks and credit unions can confidently navigate the complexities of the lending landscape and deliver exceptional results for their valued account holders.

  1. World-Class Service and Support

To ensure a seamless verification journey, community banks and credit unions should choose a solution provider that delivers exceptional service and support. From the initial onboarding process and comprehensive training to ongoing troubleshooting and guidance, a dedicated and knowledgeable support team becomes indispensable in establishing a successful verification process. Having hands-on training and support not only instills peace of mind but also empowers community-focused financial institutions to consistently provide a high level of personalized service, fostering trust and loyalty among their customers and members. By investing in a robust support system, community banks and credit unions can confidently navigate the verification landscape and stay ahead in an ever-evolving financial industry, reinforcing their commitment to delivering an outstanding experience to their communities.

As a longstanding leader in the financial industry, Experian understands the unique challenges faced by community banks and credit unions. Our verification solution, Experian VerifyTM, provides accurate, efficient, and compliant income and employment verification services. With Experian Verify, community focused financial institutions can navigate the complexities of income and employment verification with ease, achieving new levels of efficiency and success. To learn more about how Experian Verify can benefit your bank or credit union, we invite you to visit our website and schedule a personalized demo. Together, let’s unlock the potential of income and employment verification and elevate your financial institution to new heights of success.

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  Experian Verify is redefining how lenders streamline income and employment verification; a value clearly reflected in Marcus Bondraeger’s experience at Freedom Mortgage. With access to the second-largest instant payroll network in the U.S., Experian Verify  connects lenders to millions of unique employer records, including those sourced through Experian Employer Services clients, delivering instant results at scale. This reach enables lenders to reduce manual processes, accelerate loan decisions and enhance the borrower experience from the very first touchpoint. Unlike traditional verification providers, Experian Verify offers transparent, value-driven pricing: it charges only when a consumer is successfully verified, not simply when an employer record is found. As lenders navigate increasing compliance requirements and secondary market expectations, they can also rely on Experian Verify’s FCRA-compliant framework, fully supporting both Fannie Mae and Freddie Mac. Combined with Experian’s industry-leading data governance and quality standards, lenders gain a verification partner they can trust for accuracy, security, and long-term operational efficiency. Perhaps most importantly, Experian Verify delivers 100% U.S. workforce coverage through its flexible, automated waterfall: instant verification, consumer-permissioned verification, and research verification. This multilayered approach ensures lenders meet every borrower where they are, whether they’re connected to a large payroll provider, a smaller employer, or require additional document-based validation. As Marcus highlights in the video, this comprehensive and configurable design empowers lenders to build verification workflows that truly fit their business needs while enhancing speed, completeness, and borrower satisfaction. Explore Experian Verify

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