In the instant gratification era, people and businesses look for ways to speed up processes that once took days to complete. For instance, customers and organizations that deal with financial transactions want a way to grant approval or denial for a loan immediately. They also desire a way to determine if malicious activity is taking place.
The latter reason is most important. Over 650,000 cases of financial fraud were reported in 2019 by both consumers and lenders. Both parties need to mitigate this situation so loans can be approved and given to proper lendees. One answer to this is Instant Bank Verification(IBV).
For more information, here are two ways to explain this concept to your clients.
For Your Business Customers
While larger banks and lenders may already use IBV, new or smaller organizations might not know about it. The simple explanation is instant bank verification is a tool that gives your business clients an instant record of a consumer’s activities. It helps a bank or other lender determine if it’s an excellent risk to provide funds to an individual or group.
To be more specific, IBV is provided by many companies across the globe. Organizations such as Transcend Pay work with financiers to retrieve monetary data from those requesting funds. It goes beyond a fundamental review of a lendee’s credit report. Additionally, it takes a step further than examining the transaction history of someone already a customer.
Through an Application Programming Interface (API), IBV reaches out to banks and other lenders worldwide. Once communications are established, it asks for any information on the individual or group requesting the loan. Through a review and compilation of Big Data, computers send the needed information to the IBV.
In turn, it creates a comprehensive report for the lender to review. IBV also notes potential issues that might be related to poor financial history or potential fraud. As a result of this data, the lender can make a more straightforward decision to grant or deny a loan.
However, it goes beyond that. IBV is also used to verify if a person or company wants to open a new account legally. Through a data call, IBV reports on other accounts that have been opened under the individual or group. The number of accounts and activity should determine if the client is valid or conducting malicious exercises.
For Your Customers
Much of what IBV provides is advantageous to the business. Nevertheless, the consumer also benefits from IBV. The data provided can reveal potential issues the individual or company never realized.
Similar to a credit report, an IBV shows past and current activity on all financial accounts. This provides the lender with a guide. They can see what’s currently active and determine any accounts they forgot they opened. The lender increases their chance of a new loan approval by making needed payments and closing those accounts out.
On top of this, having a business run and IBV reveals potential cases of fraud. The data might show bank accounts and loans opened under their name that were never approved. This can prevent the consumer from getting any other loans in the future. Thus, in this example, the IBV helps detect and minimize fraud attempts to destabilize an individual or company.
An IBV does one more thing for the consumer. It allows them to review their financial records before a large investment. For the individual, this might be something like the purchase of a car or a home. It can include purchasing equipment, renovations, or construction of a new facility for a business. With both a credit report and IBV in hand, the consumer has a more incredible wealth of data to show investors.
In the end, Instant Bank Verification is a powerful tool. Consumers and financial institutions no longer need to wait a day or more for validation. Furthermore, with IBV, loan underwriters have a stronger foundation to stand on when they approve or deny a loan.
Those who aren’t familiar with IBV must reach out to their financial institutions or verification companies. It can shift the playing field from one of uncertainty to one of confidence.