Say No to Friction! Leverage Bank Data Without the Login

What if you could access a consumer’s banking data without requiring them to log in from their end?

Bank data has proven itself as a powerful predictor of financial health and creditworthiness – the rise of open banking or “credentialed” bank verification solutions has confirmed the value of this data to a lot of companies. Although banking data can be a powerful indication, it always requires applicants to go through a heavy-friction approach. And the key issue with any friction in any online experience is customer drop-off.

This added step of logging into an account causes a large percentage of consumers to drop off. Why? The truth is that many consumers do not want to provide their banking credentials – especially if they have another option. Whether due to trust, inconvenience, or even fraud, logging into their account adds friction leading to application abandonment. At this point, the lost lead can cause missed revenue or even a loss if you have already paid for the lead.

To solve this problem, ValidiFI has created frictionless, no login required, banking and payment solutions providing access to powerful bank and payment information without the associated friction. The real game-changer is the ability to leverage the same type of data used with credentialed applications higher in your decisioning waterfall so that you can leverage the power of bank and payment on more applicants.

What makes banking and payment data predictive? For starters, it doesn’t have the delays of traditional credit data. Additionally, it has a more holistic view of consumer behavior, taking into account more payments, not just those reported to traditional bureaus. For example, when someone is unable to repay, they usually miss smaller, everyday payments before missing larger payments with higher implications (ie. mortgage, auto loans). That’s why ACH returns can be a leading indicator of someone’s financial health declining. ValidiFI’s solutions leverage real-time information, which analyzes both the positive and negative transactions from as recent as this morning, to mitigate the risk of challenged customers.

ValidiFI’s extensive network of ACH, Check, and Debit Card transactions across all industries provide the most comprehensive source of bank and payment data, without requiring a customer login. We can identify the number of approved, returned, and pending payments associated with a customer across multiple accounts. This data is packaged alongside a Fair Credit Reporting Act (FCRA) compliant alternative credit score, built to predict defaults. The benefits of utilizing a login-free alternative are numerous but not limited to:

  1. Increased Conversions – Removing bank log-ins enables consumers to feel safer and more likely to complete the application process. It also increases the speed to funding, contributing to a better, faster, frictionless customer journey.
  2. Ability to Better Predict Lending Outcomes – ValidiFI’s frictionless bank data solutions are the next best thing to a fully credentialed login for insights into how someone is banking and paying their everyday bills. You can access aggregated transaction-level data to determine the outcomes of a consumer’s payments based on historical and up-to-the-moment behavior.
  3. Cost Savings with Use of Less Data Products – Adding frictionless bank solutions to the top of the waterfall, allows you to catch bad actors and invalid information earlier. Now you don’t need to rely on as many pricy, tech solutions for credit risk decisioning.

Aside from checking account status and standing, ValidiFI also provides frictionless solutions for real-time insight into account activity. Now you can have visibility into payments, NSFs, and account openings along with confirmation of bank account ownership and funds availability, all without any customer-facing interaction. ValidiFI’s real-time solutions are designed to help lenders make better decisions with better data and insight in a scalable and convenient way. Contact us today to learn more about the specific use cases and attributes you can attain with frictionless bank data solutions. If you would like to get started or learn more about bank data without the login, contact us online or call us at (754)-209-2511 today!

Tara Kumar