The service provider is verifying that the consumer has an income, and that it is sufficient enough that they feel comfortable in providing that consumer with their product.
What types of services require income verification?
Types of services which require income verification include home loans, property rental applications, health insurance and government aid, among others.
How is income verification achieved?
Income verification is achieved by acquiring documents which give proof of income. These documents include W2’s, paystubs, 1099’s, bank statements, tax returns, or a letter written by an employer summarizing employment and income.
The service provider must then carry out manual income verification to determine the validity of these documents. This is usually achieved by reaching out to an employer directly.
This process of income verification is fairly straightforward, but involves multiple steps and parties and can easily become convoluted by human error.
With consumers moving to digital solutions, credentialed access to a consumer’s employee accessed payroll provider (such as ADP, PayChex, Workday, Paylocity, Zenefits, etc.) is being widely used to gain access to a consumer’s income information.
This is a simple solution for those carrying out income verification.
Additionally, this form of income verification unlocks another side of the consumer’s credit: total annual income, pay cycle, years employed, digital paystubs, W2’s, level of employment, job title and hours worked, for example.
How can atomic help with income verification?
The atomic API payroll solution enables consumers to connect directly to their payroll provider with credentialed access.
That means there is no more waiting for documents, manual verification or working with other people’s timelines.
Additionally, this income verification is done in real time, making decisions less risky without lag time for changes in income.
Would you like to find out more? Request a demo today and we can show you how atomic’s income verification solution can work for your organisation.