News & Resources

Instant Bank Verification

Aug 19, 2020 Walt Wojciechowski

Instant Bank Verification

Lenders need the ability to instantly verify bank statements, account details, employment history and balances. When determining a borrowers ability to repay a loan, it's absolutely crucial that lenders have the tools they need to find out this information fast and efficiently. Without access to this vital data, it can lead to poor judgment calls when approving loans.

According to the U.S. Federal Reserves, during the first quarter of 2017, 2.18 percent of all consumer loans were delinquent. This is the highest delinquency rate since 2014. Although this number remains historically low, lenders will still need to find new ways to mitigate their exposure to risk from borrowers to find new growth channels. 

Why you should use Instant Bank Verification

MicroBilt's Instant Bank Verification (IBV) provides lenders with real-time transactional data and access bank account data using financial REST APIs from more than 20,000 financial institutions worldwide. This banking information allows them to identify the extensive credit history of a potential borrower, customer, partner or themselves. With this information in hand, the end-user can make more informed decisions about the potential for loan defaults, insufficient funds fees and more.

Although a review of a person's credit history provides useful data about their payment habits, it doesn't always provide a thorough picture. IBV supplements the credit history with an alternative credit check that fleshes out any gaps and gives lenders a more thorough and robust  

In addition, speed is often of the essence to "win the loan." Lenders that exhaust too much time and effort attempting to double check and verify borrowers' credit history will see these loan applicants move on to a different, faster lender. IBV gives lenders this information immediately, without all the hassles of using paper. This speed helps lenders maintain a competitive edge. 

Who needs IBV?

IBV reduces the time spent for loan decisioning and maintains compliance for the Fair Credit Reporting Act (FCRA). IBV works for anyone who needs to make a credit or borrowing decision.

It's crucial you have the ability to accurately and quickly verify a potential borrower's banking and payment history as well as his or her identity.

IBV for Consumers

If you're an individual who needs to catalogue your bank statements and proof of job history to obtain a loan, this can be a time- and resource-consuming endeavor.

Consumers have access to the same IBV features listed out above. This helps speed up the decision-making process during loan underwriting. Having this information instantly helps when consumers need money quickly, whether to cover bills or make an important payment. 

IBV for Businesses

Businesses who utilize equipment and other leasing options or are involved in underwriting business loans need to ensure they're working with borrowers who can repay their balances. If you're a business that needs to make a bank call or obtain statements for a particular customer, IBV verifies:

  • A borrower's ability to repay a loan.
  • Income.
  • Current and available account balances.
  • Other financial obligations and loans.

Lenders using MicroBilt's Instant Bank Verification gain immediate insight into the banking information necessary to make more accurate decisions in the lending process. This visibility into payment history and account data reduces the risks associated with borrowers defaulting and helps create more revenue potential.