Income and employment verification services provide lenders and others with efficient ways to verify financial details and employment. You can choose from many solutions with different levels of service. Truv’s waterfall of solutions provides secure, comprehensive and efficient services that may be ideal for lenders and banks.
Find out more about income and employment verification and Truv’s solutions below.
What Is Income Verification, and Why Does It Matter?
Verification of income and employment (VOIE) refers to the process of seeking proof of income and employment claims. VOIE is critical to many banking and lending applications, as financial institutions must ensure borrowers have the means to pay back loans or credit lines.
Accurate verification helps reduce fraud, confirm borrowers’ identities and ensure compliance with federal and state laws. Efficient income and employment verification also help streamline operations, supporting better customer experiences.
VOIE solutions are used by banks, credit unions, independent mortgage lenders and other financial institutions.
Key Features to Look for in an Income Verification Service
When shopping for income verification services, consider critical features such as:
- Security: Factors such as encryption are essential for any system that involves information related to personally sensitive data and financial accounts. Partner with vendors that make security a top concern to help protect your business and clients.
- Speed: You can find income verification solutions that offer almost immediate data return to help drive efficient approval processes.
- Accuracy: Accurate data is a must for verification processes.
- Compliance: Financial institutions must comply with a wide range of state, federal and industry regulations. Ensure your VOIE partner is knowledgeable about compliance needs and can support them.
- Integration support: Agile integrations that let you connect verification solutions with existing software cut down on manual workarounds that increase error risks.
- Document uploads: By allowing document uploads, you extend your ability to verify employment and increase conversion.
- Automation: Automation abilities let you create proactive and efficient workflows, offer some self-serve options for customers and support larger volumes in verification processes.
Cost Considerations When Choosing a Service
While practical compliance considerations are essential in choosing an income verification service, you also need to balance the quality of your solution with cost. The first step to considering return on investment (ROI) for this expense is to understand how the pricing models work.
Some vendors offer a subscription model. You may pay a certain amount per month or per user. Others price services based on transaction, and you pay a certain amount for each verification action. It’s also common for pricing models to combine these approaches, with clients paying a subscription fee monthly, quarterly or annually plus transaction fees.
Use historical data about verifications to understand how you’ll use a service so you can proactively budget. For example, if a service offers several subscription levels with a certain number of inclusive transactions at each level, knowing your average volume can help you select a service that’s right for your needs and budget.
Consider the inherent savings a high-quality solution offers. Faster, more accurate verifications, higher conversions and other factors can generate cost savings over the long term. For example, Truv is proven to save lenders 60-80% on verification costs compared to traditional methods, making it a cost-effective choice even for budget-conscious organizations.
Integration With Your Existing Systems and Scalability
Integrations are another essential consideration when choosing an income verification service. For example, Truv integrates with mortgage point-of-sales (POS) and loan origination systems (LOS). When implemented in a POS, Truv’s solution is completely hands-free and automated, as it’s embedded into the loan application, creating a seamless experience for customers.
- Loan Origination Systems: Encompass, Byte, Empower, Blue Sage
- Point-of-Sales: nCino, BeSmartee, Floify, LenderLogix, LodaSoft
Truv’s consumer-permissioned verification model puts customers in control of the process, which can help you build trust and support fast and accurate verification. A customer can even connect accounts and launch verification processes during times when your staff may be unavailable.
As you consider VOIE solutions, think about scalability. You want options that can not only improve your operational efficiency but also grow with your business. With Truv, our products and integrations are dynamically built with flexibility top of mind, supporting a seamless path to helping you achieve business goals. How?
Truv offers a waterfall solution with multiple data sources, which is unique in the consumer-permissioned verification space. We offer:
- Income and employment verification through connections to payroll providers
- Income and employment verification through automated document upload
- Asset verification through financial accounts and raw transaction data
The Importance of Data Security and Compliance
From document upload processes to application programming interface (API) integrations, everything about your verification solution must be secure. When you work with sensitive financial information, you’re responsible for protecting the interests of your clients and potential clients.
A data breach can be costly, even if negative outcomes, such as theft or fraud, aren’t associated with it. You still have to notify consumers about the risks to their data, which can be expensive and time-consuming.
To best protect your interests and customers, look for verification solutions that meet compliance requirements. You also should consider who you might work with. Banks that work with individuals in California must comply with the California Consumer Privacy Act (CCPA).
Other types of compliance and security certifications or factors to consider when evaluating income verification solutions include:
- SOC2 Type II Certification: Truv adheres to the rigorous standards of SOC2 Type II, ensuring secure data management and protection of client information. This certification involves comprehensive auditing of organizational practices, security protocols, infrastructure, and access management. Truv achieved SOC2 Type II certification within six months of its founding and renews it annually.
- Continuous Monitoring and Testing: Truv uses Vanta, an automated compliance monitoring tool, to track and maintain controls, ensuring real-time oversight of data and systems. Regular penetration testing is conducted to identify and address vulnerabilities promptly.
- Data Access Controls: Access to sensitive data is restricted to employees with a demonstrable need, with approvals tightly logged and monitored. Data access is granted for only 24 hours at a time and is automatically revoked after this period, ensuring minimal exposure.
- Data Encryption: Truv encrypts all data stored in the cloud and applies additional encryption layers to the most sensitive information, providing extra security. This ensures that data is safeguarded both at rest and during transmission.
Discover the Truv Difference
The ability to automate orders in a POS or LOS increases conversion exponentially and reduces legwork for your teams. This type of seamless experience is critical because your staff may be used to dealing with instant databases that return information with the click of a button. Truv’s automation paths can be implemented to provide a similar experience while retrieving information from customer accounts, payroll providers and other external sources.
To find out how Truv’s solutions can make a difference for your business, request a demo today.
