How data-enabled income and employment verifications deliver smarter, seamless financial experiences

To be competitive in an era of accelerating consumer expectations, deploying a seamless application experience for personal lending, mortgage, tenant screening and other use cases is a must. Slower, resource-laden manual processes invite higher consumer drop-off rates, introduce inefficiencies and can be vulnerable to fraudsters.  

Mastercard Open Finance solutions are equipping its customers with the capabilities to deliver smarter and more efficient digital lending experiences.  With the expansion of its Verification of Income and Employment (VOIE) solution to include credentialed payroll, Mastercard Open Finance enables consumers to permission access to their payroll account data, mitigating the need to collect income documentation.  

A more efficient digital experience within the loan application process is precisely what open banking customers need – and credentialed payroll delivers a seamless, secure income and employment verification process, and reliable data at speed. The latest VOIE innovation populates consumer-permissioned data directly into the correct fields, creating a fast, secure digital experience that can boost profitability while making life easier for your applicants and employees.

Freddie Mac has enabled the use of Mastercard’s credential payroll data [through the acquired Finicity]  for submission to Loan Product Advisor® (LPASM) asset and income modeler (AIM).  The capability to submit the data to be assessed through LPA will be effective on September 21, 2024, providing the additional benefit of potential income rep and warranty relief eligibility from Freddie Mac to mortgage clients ordering verification reports from Finicity.

Fannie Mae has authorized the use of  Mastercard’scredentialed payroll data [through the acquired Finicity], sourced from Argyle, for Day 1 Certainty® eligibility. The data will be enabled through the Desktop Underwriter® (DU®) validation service July 30, 2024, providing the additional benefit of rep and warranty relief on validated components to our mortgage clients.

Mastercard Open Finance teamed up with industry-leading payroll data aggregator Argyle to power this expanded VOIE solution. With 90%+ coverage of the U.S. workforce, financial institutions can now digitally verify an applicant’s income and employment in just moments.  

We’re excited to partner with Mastercard  to make digital verification of income and employment widely available through our trusted network of consumer-permissioned connections,” said Brian Geary, COO at Argyle. “Together, we are creating smarter lending experiences, free from time-consuming manual touchpoints while achieving faster and more accurate verification s ,” he added. The combined capabilities of Mastercard Open Finance and Argyle are driving VOIE to be an efficient, flexible solution that comes in at a much more affordable price point than other income and employment verification options, poised to benefit financial institutions and consumers alike.

“Mastercard Open Finance’s new credentialed payroll enhancement was one of the simplest product launches we have done,” said Josh Cilman, EVP at Intercoastal Mortgage. “The new experience integrated smoothly into our existing processes with no impact to loan processing workflows and an efficient borrower experience. We are excited to digitize our loan application experience with a much more cost-effective way to verify income and employment.”  

Credentialed payroll is just the latest addition to Mastercard Open Finance’s growing list of digital income and employment verification solutions for smarter and faster decisioning.  

Mastercard Open Finance’s Deposit Income verification solution analyzes direct deposit streams from the consumer’s permissioned bank account data to identify an applicant’s income.  

Freddie Mac launched Loan Product Advisor® (LPASM) asset and income modeler (AIM) for income using direct deposits in March 2022 with Mastercard Open Banking as an initial service provider. In March 2024, Fannie Mae announced general availability of Deposit Income as part of their Desktop Underwriter (DU®) validation service. These solutions help streamline the mortgage origination process for lenders and homebuyers while expanding opportunities for home ownership. 

Mastercard Open Finance solutions are used by financial institutions and decision makers in varied use cases, including mortgage lenders, tenant screeners, personal lenders, credit card issuers and more.  Credentialed payroll and Deposit Income solutions provide financial institutions with the high conversion, affordable income, and employment solutions they seek.  

Bank account and payroll account data can be used independently or in combination to enhance the customer experience depending on the institution’s needs and workflows.  

The Mastercard Open Finance platform delivers next-generation financial experiences that delight consumers. The platform serves as a one-stop shop for digital verifications, with the capabilities to verify assets, balances, income, employment, cash flow and much more, seamlessly and at scale.