“Time is money,” is a quote that has often been quoted as one of the core principles of business management, but the question of how to save that time finds few practical solutions. One of the most time-consuming processes in every business is traditional methods of payroll verification.
The components of manual verification such as collecting payslips, banking credentials, verifying with their employers, etc. make it extraordinarily cumbersome and tedious. This inevitably creates friction and hampers the efficient functioning of financial institutions and lenders.
However, technological advancements have played a major role in drastically reducing the time taken for such payroll verifications. Today, payroll automation is one of the best ways to reduce approval timings and automate the entire verification process.
So, let us understand how automated payroll verification is one of the best ways to save time and money.
Manual verification is done by humans and often has a scope of error, which makes it necessary to double-check the data and leads to a delay due to double checking. However, in the case of automated payroll data, the verification via APIs from the source of truth, which reduces the risk of errors.
Further, each loan cycle involves several steps of manual verification which elongate the time taken for a loan to be granted. However, verification processes powered by APIs can boost the efficiency of the loan cycle and ensure that loans are granted in a considerably lesser time.
Automated payroll processes use intelligent OCR that assists you on various workflow stages, like data filing with its auto-populating for an errorless and effective workflow. This ensures that the documents provided by the applicants are duly authenticated before a loan is granted and helps reduce the risks of bad credit.
Manual processing takes expensive labour which eventually hikes the overall processing costs of the loan. In contrast, payroll-attached API solutions will dramatically improve verification speed for background checks, coverage rate, and quality leads eventually leading to reduced processing costs and higher profits.
The credibility of documents provided by the applicants is usually low owing to human or processing errors. Additionally, it is not uncommon for loan applicants to provide fake documentation to ensure that their loan is approved by financial institutions. Thus, the more lenders rely on applicant-provided information for income and employment verification, the more the chances of inaccurate decisions.
According to research conducted by Inscribe, over 5% of the documents provided for loan approvals are fake and fraudulent documentation leads to over 60% of loan write-off rates. This inevitably leads to a drain of undue resources on the part of banks and lenders. Moreover, relying on such outdated manual data in the digital age works to the disadvantage of financial institutions.
With the rapid advancement of technology, PDFs have become easier to tamper with and fraud detection has become harder to detect through outdated methods of verification. Thus, it becomes hard for lenders to rely solely on applicant-provided data without verification.
API based payroll data faces no such issues of inaccuracy. This is because the data provided is accurate and sourced in real-time from the employers and authentic payroll databases to ensure that the data is tamper-proof and error-free.
With the rapid enhancement of technology and rising labor costs, lenders across the globe are looking to digitize their payroll verification process to keep up with their competition. Anyone who fails to adapt to modern approaches is likely to be left behind.
One of the primary reasons for the same is the reduced time automated payroll verification takes to process each loan application. This eventually translates to reduced costs and increased profits for lenders and financial institutions.
Digitization also helps ensure that the entire process remains smooth and hassle-free. It boosts the overall satisfaction of both the borrowers as well as the lenders, eventually leading to increased loan applications.
In addition, automation ensures transparency by reducing the paper trail and maintaining a record of every transaction that happens in the system. In case of errors, the problem points are easier to spot since it helps ensure that the entire process remains traceable.
Therefore, errors and irregularities are less likely to occur in an automated system in contrast to manual verification. This boosts the consumer’s confidence and ensures that the lender’s reliability and credibility remain uncompromised.
Every loan applicant seeks a simple and unproblematic experience. Nonetheless, the delays caused by manual, paper-based verification leads to a serious obstruction that discourages people from applying for loans.
Access to consent-driven income and employment data accelerates the process of loan approval. Thus allowing lenders to streamline verification, enhance user experience and reduce risks. This eventually allows lenders to issue an increased number of secured loans in a shorter period.
Moreover, the guarantee of secure and error-free payroll data helps reduce rechecks and boost the efficiency of income and employment verification. It eventually helps amplify the borrowers’ trust in the financial institution and vice versa, leading to an increased amount of customers and loan applications.
To conclude, it is important to highlight the increasing competition among lenders and banks. Payroll automation powered by APIs helps provide the necessary edge that can help financial institutions stand out among the masses with its efficiency and accuracy and ensure that it garners the attention of their target clients.
Tartan is a Payroll connectivity and full-stack verification API company, enabling consent-driven employment and income verification in real-time. We help to simplify banking by eliminating reliance on manual processes for income and employment verifications and KYC-related verifications. And assess creditworthiness in real-time quickly to make accurate risk assessments with over 30+ accurate and verified data points.
With a first-of-its-kind product offering in India and a feature-packed platform, TartanHQ’s demo is worth trying. Passionate commitment accompanied by a rock-solid performance will make you stick with it forever.
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