Imagine a world where the lending journey is streamlined and aligned with today's innovative technologies. A world where income and asset verification happen real-time. No need to return to your customers and request even more paperwork to support their ability to pay. This presentation dives into how lenders can now bring financial data aggregation into the mainstream. With a simple interface, lenders can verify income and assets in minutes vs. days, leading to reduced processing times, improved revenue streams and higher customer satisfaction.
2. About our speakers:
Laura DeSoto
Senior Vice President, Experian
Steve Smith
CEO, Finicity
Reshma Peck
Moderator, Experian
3. 1. Today’s lending landscape
2. The role of account aggregation
3. Industry use cases
4. A look at Experian’s Digital Transaction Solutions
5. Q&A
Agenda
4. • Understand the opportunity to reimagine lending
• Learn how to apply it to various industries
• Discover the power of Experian’s Digital
Transaction Solutions
Objective
5. Partnering to provide innovative solutions
User-permissioned
Access to Data
Robust Analysis
and Insights
Integrated
Decisioning and
Delivery
Better Customer
Experience
&
More Efficient
Business Processes
Experian and Finicity Partnership
+ + =
7. Trends defining the banking industry in 2017 and beyond
“Long term, banks without legacy
overhangs of branch networks and
heavy ties to paper-based processing
will be advantaged, as those assets will
be increasingly less valued.”
SOURCE: http://www.businessinsider.com/these-are-the-top-trends-that-will-define-the-banking-industry-in-2017-2017-2?pt=385758&ct=Sailthru_BI_Newsletters&mt=8&utm_source=Triggermail&utm_medium=email&
utm_campaign=email_article/#1-onerous-carl-compliance-audit-risk-and-legal-costs-abate-1
8. • Verification is time consuming
• Relying on proof documents
Challenge: Assessing ability to pay
MORTGAGE INCOME
FRAUD RISK
12.5%FROM Q2 2015 TO Q2 2016
SOURCE: CoreLogic 2016 Mortgage Fraud Report September 2016
• Increases risk of fraud
• Drives up operational costs
• Slows down application and funding process
• Burdens consumers
• Negatively impacts customer experience
• Results in higher abandonment rates
9. With the rise of “mobile financial services” consumer’s expect to be
able to complete their financial transactions at the click of a button.
Challenge: Shifting consumer expectations
53%Smartphone owners
using mobile banking
28%Smartphone owners
using mobile payments
SOURCE: Federal Reserve, Consumers and Mobile Financial Services March 2016
94%
58%
56%
65%
42%
33%
Checking balances or transactions
Transferring money between accounts
Receiving an alert
Paying bills
Purchasing remotely
Purchasing in a store
10. “Let me state the matter as clearly as I can here: We believe
consumers should be able to access [their financial] information
and give their permission for third-party companies to access
this information as well.”
- Richard Cordray, Director, CFPB
at Money 20/20, October 2016
Challenge: Regulatory pressure
SOURCE: https://www.consumerfinance.gov/about-us/newsroom/prepared-remarks-cfpb-director-richard-cordray-money-2020/
11. • Financial Institutions/service providers
must create a hassle-free customer
experience.
• To do this they will need to invest
more heavily in digital capabilities and
in technology that removes paper from
the process.
Lenders are forced to adapt
https://thefinancialbrand.com/63617/digital-banking-strategies-fintech-data-analytics/
“Digitization is driving
transformation, rewriting the
model as consumer
expectations change”
12. We need to be connected ... very connected
Legacy Business Model
Risk Management Inertia
Innovation Weary
Increased Margins
Tailored Customer Experiences
Speed of Innovation
Digital Laggards Digital Innovators
Cloud - Mobility - Big Data
Digital Divide
14. A method that involves compiling
information from different accounts.
What is account aggregation?
• Bank accounts, credit card accounts,
investment accounts, other consumer or
business accounts, into a single place
• FIs and accounts are chosen by the
consumer
• Permission is given by the consumer to
the aggregator
15. vs.
Account Aggregation Credit Reporting
• Pulled from a resting database
• May be viewed without consumer’s knowledge
• Data provided by “furnishers”
• Real time data collection
• User permissioned for every access
• Consumer is owner of data
16. Benefits of Account Aggregation
• Automated, paperless verification process reduces processing times
• Relies on consumer’s permissioning of data and true aggregation technology
• Verification via real-time access into financial systems versus customer provided
paperwork or third-party systems
• Easy-to-use transparent interface for online and mobile experiences
17. Why our solution is different
• FCRA compliant and delivered by registered and mature CRAs
• Integrated with best in class Decisioning as a Service platform
• Unparalleled data quality with 100% formatted data sources and
comes with a Financial Transaction ID
19. • Lenders require that borrowers income
and assets be verified which takes days
sometimes weeks
• Current verification process is tedious and
time consuming for the borrower
• Borrower intervention increases risk of
false documentation and inflated reporting
Mortgage
20. Verification of Asset Pilot
• Freedom from paper-based
processes for validation of assets
for first mortgages
• Freedom from representations
and warranties
• Greater speed and simplicity,
enabling an improved borrower
experience
21. • Lenders often have income threshold
stipulations (STIPs) for borrowers with
credit scores< 625
• Dealers often required to verify car buyers
income to meet lender stipulations (STIPs)
• Consumer overstates or understates
income at time of application
• Consumer provides fake or altered
paystubs
• Employment verification often required to
meet lender stipulations (STIPs)
Automotive
22. • Lenders require verification of borrowers
income which takes times to gather and
verify
• Current verification process is tedious and
time consuming for the borrower
• Borrower intervention increases risk of
false documentation and inflated reporting
Personal loans
23. Helping organizations across a wide range of industries
Home Loans
Card & Personal Loans
Small Business
Screening
Eliminate paper to move towards
an all-digital mortgage underwriting
process
More precise ability to pay
assessment
Deeper understanding of cash
inflows and outflows
Improved insight into prospective
employees and tenants
Auto Loans
Reduced manual verification and
stipulations
24. New Products
• Income Verification
• Asset Verification
• Cash Flow
• Scores and Attributes
Improved Outcomes
• Increase consumer satisfaction
• Reduce risk
• Broaden loan availability
• Accelerate loan underwriting
Account Aggregation will power new consumer insights and
digitize the application and lending process
ACCOUNT AGGREGATION API
Auto Loans
Home Loans
Card &
Personal Loans Small Business
Screening
Digital
Identity
Employment
Data
DDA
Savings
Credit Accts
Investment
401K
26. • Historical transaction data (typically 12-24 months)
• Income report containing attributes:
- Direct deposit income
- Other income
- Average monthly income
- Frequency of income deposits
- Payor
• Verification of account owner
Verification of Income
27. Verification of Assets
• Account balance query across various types:
- Checking (credits and debits)
- Savings/CD’s
- 401K, brokerage account
• Historical transaction data details (typically 90 days)
• Account balance attributes (typically last 90 days)
- Average account balance and trend
- Min and max account balance
• Verification of account owner
28. Prequalification
Use across the lifecycle of a lending relationship
Underwriting/
Decisioning Verification
Credit Risk
Modeling
Account Review/
Monitoring
40. What makes us different?
Broad Coverage
• 80% certified coverage
• Full spectrum of account types
High Quality Data
• 100% formatted data
• Auditable FI Transaction ID’s
Compliant Solutions
• Delivered by registered CRA
• Robust security
41. Reimagining Lending
Crosses the credit lifecycle; the uses
and benefits are wide-ranging:
Decisioning
Verification
Credit Risk
Modeling
Account
Review
Prequalification
• Increases consumer satisfaction
and loyalty
• Reduces credit and fraud risk
• Broadens loan availability
• Accelerates loan underwriting
• Improves ability to match consumer
to right offer
43. To learn more about Experian’s verification of income and
verification of assets solutions:
- Reach out to your account executive
- Call 1-888-414-1120
Editor's Notes
Online banking is top choice of consumers at 28%, followed by branch banking at 24%
60% of bank customers use online banking at least weekly if not more frequently
re: Dodd Frank 1033
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Before we launch into our pitch, is there something more high-level we can speak to around how account agg has been around that then tees up why our evolution is better.
Text left, image right slide [uses Title, Text, Image layout]
The headline appears in Arial (Experian Dark Blue) at 34pt. If a sub headline is required, it should be manually sized to 20pt.
The text has five pre-set levels in 17pt Arial:
Level 1 – ranged to the left margin for continuous text; if you require a bold subheading you can embolden this to 17pt Arial Bold
Level 2 – ranged to the left text margin with a round bullet, subsequent lines aligning with the text of the previous line
Level 3 – horizontal dash bullet, subsequent lines aligning with the text of the previous line
Level 4 – round bullet, subsequent lines aligning with the text of the previous line
Level 5 –horizontal dash bullet, subsequent lines aligning with the text of the previous line
Advancing through the text levels can be done by using the ‘Increase List Level’ and ‘Decrease List Level’ buttons in the ‘Paragraph’ tools on the ‘Home’ ribbon.
If your text content exceeds the depth of the text box, you may need to consider creating an additional slide.
Inserting an image
A squircle picture placeholder has been set up on the slide layout, bleeding off to the top and right of the layout. The placed image should be a square format and the squircle placeholder is 16cm x 16cm. To optimize screen and desktop printed output, it is recommended that images are saved to 100dpi at these dimensions.
The brand mark on this slide layout is set up at the correct size and position and should not be altered. The date and footer info can be edited across all slides by using the ‘Header and Footer’ settings on the ‘Insert’ ribbon (do not edit these manually on the individual slides).
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