Results Show That Permissioned Data Use Increases Loan Approval Rates and Efficiency In Loan Operations.
NEW YORK, Nov. 14, 2024 /PRNewswire-PRWeb/ -- Conductiv, Inc. today announced the completion of the Filene Research Institute Incubator "A Solution Focused on Improving Lending Operations and Loan Approval Rates." The report documents the value of the Conductiv platform and the lift in loan approval rates and increased efficiency of underwriting teams obtained through the use of consumer-permissioned data.
Conductiv addresses key challenges in lending operations related to "stipulation chasing" -- especially when manual methods are used to verify borrower income and employment. Participating credit unions verified income (VOI) by collecting paystubs and other income documents digitally using consumer-permissioned data sources via Conductiv. This data was collected and stored within the MeridianLink Consumer LOS, allowing loan teams to access and verify income instantly and avoid painful, manual data collection and verification.
Key results from the project included:
- Consumers are increasingly comfortable sharing permissioned data, especially as they recognize the benefits of personalized financial services; 70% of consumers are likely to share permissioned data for better loan rates and financial tools.
- The integration of permissioned verification of income (VOI) data into the lending process led to improved efficiency by reducing manual review efforts, with the underwriting process becoming 2-5 times more efficient, and resulting in overall increase in approval rates of 47%.
- Credit union lending team members agreed that Conductiv fills a gap in the loan decisioning process and fits within the organization's strategy; teams reported that integrating VOI up front allowed for faster funding time for the loan officer and less back and forth between all parties.
In summary, Conductiv demonstrated its value for credit unions to enhance lending performance in multiple ways. Based on credit union feedback, Conductiv can:
- Act as a proactive tool to bridge the data gap across all FICO bands including low-FICO and no-FICO applicants.
- Demonstrate a credit union's commitment to serving members who typically don't qualify for mainstream rates.
- Enhance lending accuracy by filling data gaps with alternative data not captured in traditional credit reports.
Public access to the Filene Custom Incubator Full Report is available at this link.
About Conductiv
Conductiv digitizes the manual processes in lending, decreasing abandonment rates and increasing approval rates. The platform connects lenders to thousands of cash flow, income, identity, and other permissioned data points via a single, future-proof API and AI capabilities. This makes it easy for lenders to digest and use this data, resulting in operational efficiencies, greater protection against fraud, and a modern, consumer-friendly experience. Less work. More loans. Happier customers.
About Filene Research Institute
Filene Research Institute strengthens organizations through innovative research and incubation to improve consumer financial well-being. As an independent cooperative finance think tank, Filene's membership network connects a community of leaders and bright minds to change lives through innovation, truth and cooperation. In addition to delivering cutting-edge, actionable academic research, Filene also provides incubators to test and scale solutions, events to spark organizations into action and advisory services to help accelerate and implement innovation.
Media Contact
Jill Baker, Conductiv, Inc., 1 (201) 340-1744, [email protected], conductiv.co
SOURCE Conductiv, Inc.; Conductiv, Inc.
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