Verify bank statements and self-employed income in real time 

Top auto lenders have digitally transformed dealer portals and revolutionized the way financial transactions are managed. Now they’re launching real-time validation of proof of income, transforming the industry by streamlining processes and boosting confidence among users.

Traditionally, calculating income from bank statements and self-employed applicants’ income has been a time-consuming, manual process, often leading to errors and delays in decision-making. Lenders are now embracing new technology allowing dealers to access instantaneous validation, ensuring accuracy and efficiency in their financial assessments during underwriting. 

Dealer portals have been using AI-powered technology for instant verification of pay stubs, which are now an industry best practice, for several years. Now lenders are leveraging accurate calculations of self-employed consumers. Dealers are demanding quick and efficient go-to-market strategies, with customizable interfaces providing clear and transparent results. Today’s dealers expect more efficiencies in the finance and insurance departments from all lenders.

Key benefits of real-time validation in dealer portals include:

• Competitive advantage: Stay ahead of the competition by offering a cutting-edge dealer portal that enhances user experience and productivity. Real-time validation increases capture rate and sets lenders apart as leaders committed to innovation. 
• Efficiency: Dealers no longer want to wait days or weeks to confirm the financial status of their clients. Real-time validation expedites the decision-making process, reducing processing times and enhancing the customer experience.
• Accuracy: Eliminate the risk of errors associated with manual data entry and verification. Real-time validation ensures that bank statements and self-employed income information are up to date and accurate, minimizing costly mistakes. 
• Confidence: Dealers can make informed decisions with confidence knowing that the financial information they rely on is current and validated. This leads to more precise credit assessments and better risk management. 
• Cost savings: Reduce the resources required for manual verification and potential expenses associated with incorrect assessments. Real-time validation helps optimize operational costs. 
• Compliance: Ensure compliance with industry regulations and lending standards by utilizing the latest technology to validate financial information transparently and securely. 

Auto finance lenders’ commitment to innovation and user-centric solutions has led to this exciting expansion of the market to individuals who once were rejected by credit policies. Previously it was more difficult to validate income for these individuals and it was considered a niche market. Some lenders even charge dealers to do up-front validation of bank statements.  

During a recent dealer visit in Dallas, one F&I manager said they would give $1,000 to be able to validate bank statements upfront. 

Real-time validation in dealer portals is a game-changer for the industry. Look for a solution that not only simplifies processes but enhances trust and efficiency: It’s a win-win for dealers and their customers. 

Jessica Gonzalez is the director of lending strategies at Informed.IQ and has more than 15 years’ experience in the financial services industry, including tenures at Santander Consumer USA and Visa.    

Auto Finance Summit, the premier industry event for auto lending and leasing, returns October 29-31 at the Bellagio Las Vegas and features a fireside chat with Ford Credit. To learn more about the 2023 event and register, visit autofinance.live/afs/.