EDGE Insights
In today's fast-paced digital age of consumer credit, financial technology (fintech) innovations are revolutionizing the way companies streamline the process of issuing new products. One such advancement is instant bank verification (IBV), a game-changer for lenders, employers, and individuals alike. This blog explores the significant time-saving benefits of switching to EdgeConnect over the traditional manual paystub submission method or even other bank data providers. EdgeConnect is a multi-source platform that feeds into EdgeEnrich – a highly readable and usable package of extracted risk insights that are easy to use and field-tested. By leveraging EdgeConnect and EdgeEnrich, instant bank verification streamlines workflows, reduces administrative burdens, and propels consumer credit decisions closer to a real-time status.
Traditionally, lenders and employers required applicants to provide paystubs as proof of income during loan applications or employment verification processes. This involved individuals manually collecting, scanning, or faxing their paystubs, which is time-consuming and prone to errors as well as fraud. Furthermore, processing these documents added to the administrative burden, requiring personnel to manually review and validate the information. This traditional approach consumed significant time, introduced delays in decision-making, and hindered the efficiency of issuing new products.
Instant bank verification is a fintech innovation that eliminates the need for manual paystub submission. Instead, it leverages secure, permissioned read-only access to an individual´s bank account information, allowing lenders and employers to retrieve real-time financial data directly from the source. Edge uses the retrieved balance and transaction history to calculate income and generate a range of insights useful in credit risk decisions such as additional indebtedness and other payment burdens.
However, even IBV has limits as each data provider and financial institution differs in their processing and delivery of this new real-time data tool. Edge cuts through this issue by harmonizing the data, weighting the most relevant insights, and creating a universal and usable package of features. With instant access to standardized, accurate and up-to-date data, decision-makers can streamline their evaluation processes and make informed decisions more efficiently, all while reducing the risk of fraudulent documentation.
Switching to Edge offers a remarkable advantage in terms of time savings. Gone are the days of waiting for individuals to compile, submit, and validate paystub information manually. With EdgeConnect and its smart routing algorithms, the entire process can be expedited for a significant reduction in the time it takes for applicants to provide proof of income. Instead of waiting days or even weeks for documents to be reviewed, lenders and employers can access the necessary information within seconds or minutes. In some cases, Edge users have been able to process and review six times more applications than before adopting the platform!
Not only does Edge reduce the time spent on data collection, but as already highlighted, we also minimize the administrative effort required to handle and process manual paystubs. And if a new feature is needed, Edge can quickly surface and put these data points into production. By automating the verification process, financial institutions can allocate their human resources more effectively.
The shift towards instant bank verification represented a critical step forward in financial technology. Edge takes the availability of bank transaction data to the next level by making it user-friendly and underwriting-trained. By eliminating the need for manual data sources, Edge saves time for both applicants and decision-makers. It streamlines processes, and enhances the overall efficiency of the consumer credit marketplace. Embracing Edge allows for faster, more reliable evaluations, ultimately saving time and money for individuals, organizations, and the financial ecosystem as a whole.
