Can Accurate Payroll Verification Actually Take Just One Minute?

Published on June 30, 2021

The short answer is “yes.”

When you’re writing a loan, having accurate and up-to-date information about someone’s salary is critical. You’ll want to know as much as you can about their entire earning history, so you can be assured that you’re extending capital to the right prospects.

All lending institutions — banks, credit unions, and non-bank lenders are all faced with this challenge, but institutions simply don’t have the resources (time and staff) to follow-up with clients and employers, especially in today’s complex times.

The demand for mortgages and home equity loans are on the rise. Rates are low, more young homebuyers are entering the market, and people are moving in record numbers to new areas for quality of life, as a result of the work-from-home trend. Many are creating side gigs and seek small business loans to get their entrepreneurial ventures off the ground.

In short, the number and types of people who need access to capital is higher than ever before. While that’s happening, your institution may be challenged with serving more clients with less staff. 

Adding to the challenge is that people change jobs with greater frequency these days and combine day jobs with “gig work.” Amassing an accurate and timely payroll history can, therefore, involve checking more employers or looking for data from non-traditional employment sources. 

Many institutions require re-verification of assets and payroll history at the start of the loan origination process and then again prior to closing, which adds an additional level of complexity and time management to the lending process.

Customer Expectations are Changing

Clients expect more from their banks and other lenders these days when they’re seeking mortgages, home equity loans, or small business capital. They have virtually unlimited options for financial institutions and are ready to walk if they aren’t getting quick decisions and best-of-class service.

Borrowers don’t necessarily care what’s going on behind the scenes. They deal with one person at one company and assume you’ll make them a top priority when they start the loan process.

They shop online for rates and features and expect their banks and other lenders to also be using automation to streamline the process.

If you’re stressing-out just thinking about the extra work and client demands, take a deep breath. The good news is that we’re very aware of these challenges faced by lending institutions (especially smaller and non-traditional ones) and have created a solution.

The Most Accurate — and Fastest — Data Source is at Your Fingertips

Working with Argyle, Lendsmart created a solution that gives lenders immediate (60-second) and highly-accurate access to payroll data, so you can make better decisions faster.

Lendsmart has a unique state-of-the-art Artificial Intelligence (AI) system that removes much of the labor-intensive process of completing a comprehensive loan application. You can customize your requirements to your own policies and regulations, and borrowers are able to flow through the application process at a faster rate. You remove much of the back-and-forth and manual processes, which ultimately saves everyone time and money.

The system amasses accurate and up-to-date data from a variety of sources and presents you — the lender — with a complete picture of your prospective borrower’s financial status, so you can easily spot trends and write more solid, lower-risk loans. 

Complete customization to reflect your company’s brand and policies and asset verification is part of our robust package, which also enables you to verify payroll history, amounts, and current status.

The Team That Serves You Intimately Knows Lending

Lendsmart’s automated payroll verification solution was developed by people who know the intricacies and pitfalls of loan processing because we once worked at financial institutions and have been responsible for assessing and writing loans ourselves. We have also been investors and borrowers.

Simple closes that should have taken 30 days were dragging to 60 or even more, due to the cumbersome process for gathering accurate data from multiple sources.

When borrowers are seeking loans they will present you with information and history that shines the best possible light on their earning history. Now, you have a simple and fast way to source and verify that data, which ultimately leads to better loans and greater client satisfaction. 

We integrated our system with Argyle’s technology to deliver payroll data for more than 90 million employees. It even integrates with W2 and W9 platforms, so you can get accurate data from independent contractors and small business owners with record speed.

As we said earlier, that speed can be as short as a mere 60 seconds. Hard to believe, right? But it’s 100% true.

Small lending institutions can now compete easily with larger ones, you can customize your process and portal to represent your brand and its policies, and you can serve every client and prospective client with speed and accuracy, leading to even more business growth for your bank, mortgage company, credit union, or other type of lender. Everybody wins — quickly.

Equally important, you write the best loans because you’re working from the most accurate data from a wide range of sources. Employment trends will continue to evolve. People will have more jobs and move jobs. Employers will grow, merge, and sometimes shut down.

But, despite the changes, we can assure you of one timeless fact. Lendsmart will deliver consistent and accurate data to lenders in record time. Speak to us about your payroll verification needs and we’ll give you a solution that saves you time, money, and aggravation.

Schedule a demo today.

 

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