Equifax Automated Checks Help Increase Auto Lending Efficiency
ATLANTA, January 14, 2021 / PRNewswire / – Despite the economic impacts of the COVID-19 pandemic, several sources reported strong auto sales at the end of 2020. To help auto dealers and lenders more effectively manage the increased volume of requests, Equifax Inc., (NYSE: EFX) offers StipClear employment and StipClear income. Designed to meet the verification needs of the automotive industry, both products include The Work Number?? database information, which automates the auto loan process and verifies the information provided on applications.
According to a September 2020 McKinsey study, digital processes are becoming increasingly important throughout the car buying funnel. The study found that two-thirds of young consumers prefer a digital format for making car purchases. This trend, combined with a recently reported increase in the number of fake pay stubs submitted with auto loan applications as well as current sensitivities to social distancing, has led many auto dealerships and lenders to start committing more towards digital processes.
“It is clear that the auto industry is moving very quickly towards simpler, streamlined and online auto finance environments,” said Lena Bourgeois, Senior Vice President of Automotive Services at Equifax. “Dealers and lenders want and need to integrate digital solutions into their process. Digitizing the verification process with The Work Number helps them structure new and used car loans more effectively and provide their customers with quick decisions. ”
Automated employment and income verifications by The job number the database benefits dealers, lenders and consumers. Digital Audits leverage over 111 million active job records in The Work Number database, including many small and medium-sized businesses as well as hundreds of thousands of 1099 records that can help accelerate employee decisions. car loan and eliminate the need for phone calls and payslips. Analysis of Equifax data shows that when applicants’ income and employment are verified by The Work Number, those automotive applicants are 40% more likely to be funded.
“With automated income and employment checks, paper pay stubs can be taken out of the equation,” commented Joel rickman, Senior Vice President of Audit Services for Equifax. “When information is provided by The Work Number, consumers don’t have to collect pay stubs and lenders don’t need to spend more time validating them. Digital delivery of employment and income verifications helps reduce uncertainty, close the deal and drive away in their new car. “
The lender can place a stipulation on the approval of the loan, stating that the applicant is approved and that the transaction will be funded. Accredited lenders can quickly and transparently clear the stipulation by using any of Equifax’s automotive products to verify income or employment information through The Work Number database.
For more information on Equifax automotive verification solutions, visit here.
ABOUT EQUIFAX, INC.
At Equifax (NYSE: EFX), we believe knowledge is the engine of progress. As a global data, analytics and technology company, we play a vital role in the global economy by helping employers, employees, financial institutions and government agencies to make critical decisions with greater confidence. Based at Atlanta and supported by more than 11,000 employees worldwide, Equifax operates or has investments in 25 countries in North America, Central and South America, Europe, and the Asia Pacific Region. For more information visit Equifax.com.
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SOURCE Equifax Inc.