Unsecured personal loan applications lack the sophisticated digital verification tools seen in other product lines
The unsecured lending market generally sees low levels of pull-through rates from applications to booked loans. Among issues, the verification step of the journey can be a particular pain point for applicants, causing delays or pushing the process offline.
While the digital lending market is growing, online verification processes among lenders remains somewhat underdeveloped. Some notable efforts by fintech lenders to make the process more streamlined and secure are yet to be replicated in the journeys of most traditional lenders.
Fintech lenders leading the way
The standout verification tool seen among providers is API bank account linking using third party services such as Plaid or Finicity. Using the login credentials of a supported bank account, applicants give permission to the lender to access account details including ownership and balance and transaction information. With this, Finicity can show an applicant’s average monthly income and 24 months of transaction history. These processes are seamlessly embedded in the application journey and provide a secure, user friendly way of verifying information in addition to expediting the approval process.
|Lending Club||Upstart||Upstart||One Main|
Register to access this Premium Content
To access this blog and all premium content within our site, simply register your details just once via the form on this page.