Plaid, a top open banking Fintech, has revealed a new service labeled “Income.” The service enables immediate income verification for firms using the application thus reducing the time to completion in situations that require the ability to confirm how much income an individual makes.
Examples of when this may be necessary include:
- Mortgage approval
- Other loans/credit
- Apartment rental
- Vehicle leasing
Plaid states that it views “payroll data” as the “next frontier” in Fintech and open financial applications. For permissioned users, financial approvals may move far more quickly than they do today. For anyone that has completed a mortgage re-financing – even using a top Fintech originator – the proces still takes months to complete. With all the data zooming around the internet, decisions really should be instantaneous – or nearly so.
Plaid reports that today it “supports real-time payroll authentication for over 250,000 of the largest employers in the United States—including nearly 80% of the Fortune 100—and this list is continually expanding.”
Plaid works with both Fintechs and traditional financial services firms that are seeking to up their game.
Of course, there will always be questions as to who controls the data and who can get access to this information. In the UK, the end-user owns the data and enables or disables access.