How Can Bank Account Verification Help You?

It’s important lenders feel confident when extending credit to customers. Missing information or using misleading data can lead to poor judgment when approving loans. Unfortunately, due to recent events, this process has become even more challenging. 

COVID-19 caused a massive disruption in the global economy. Both businesses and individuals were scared they wouldn’t make it through the rest of the year.

To combat this fear, governments around the world funneled money into relief programs in an attempt to help individuals. Whether it was in the form of a check or increased unemployment benefits, consumers were successfully kept afloat.

This artificial influx of money also gave many individuals the ability to make their loan payments on time, giving rise to a massive drop in delinquent loans.

But now that we are emerging from the crisis and government relief programs are beginning to shut down, reports show that delinquencies are steadily back on the rise.

The misleading data, based on the government's financial aid, creates a whole new set of risks for lenders whole are looking to accept new borrowers.

So, what can help lenders mitigate these risks while finding new ways to expand their client base? Bank account verification!

What is Bank Account Verification?

Since the risks present in misleading data are not easy to spot, using traditional credit scores may not be enough. That's why MicroBilt created Instant Bank Verification (IBV).

The information you can gain from IBV can help you make the most informed decision based on a client's banking history. This information includes:

• Ability to pay loans
• Income
• Current and available account balances
• Other financial loans and obligations 

Using this knowledge can improve your return rates, reduce overdrafts, and validate if a specific debit amount will clear. Sounds pretty good, right?

Now that the basics of bank account verification are covered let's go over the advantages of using this data and how you can make the most of it.

Advantages of Bank Account Verification

We at MicroBilt understand the challenges lenders face when reviewing clients. Especially post-pandemic. That's why MicroBilt's suite of bank verification products was created to both simplify and enhance the review process.

Gathering information from a customer is always tricky, but with our easy-to-use platform, all you need to do is sign up, and you gain immediate access to data from over 20,000 financial institutions worldwide.

Speed is another important factor for any lender. Spending too much time on a single loan might cost you the client. But with IBV, you don't have to sacrifice quality for speed, keeping you ahead of the competition and ready for the next borrower.

So, before you begin trusting the old data you have and begin extending credit to risky borrowers, start using MicroBilt’s Instant Bank Verification and feel confident you are getting all the information you need to make the right decision.