Conductiv Announces Completion of Filene Research Institute Incubator
Results Show That Permissioned Data Use Increases Loan Approval Rates and Efficiency In Loan Operations
Conductiv is excited to see the completion of the Filene Research Institute Incubator "A Solution Focused on Improving Lending Operations and Loan Approval Rates." The final report documents the value of the Conductiv platform and the lift in loan approval rates and increased efficiency of underwriting teams obtained through the use of consumer-permissioned data.
Conductiv addresses key challenges in lending operations related to “stipulation chasing.” This is especially critical to replace manual methods historically used to verify borrower income and employment.
The participating credit unions verified income (VOI) by collecting paystubs and other income documents digitally using consumer-permissioned data sources via Conductiv. This data was collected and stored within the MeridianLink Consumer LOS, allowing loan teams to access and verify income instantly and avoid manual data collection and verification.
Key results from the project included:
Consumers are increasingly comfortable sharing permissioned data, especially as they recognize the benefits of personalized financial services; 70% of consumers are likely to share permissioned data for better loan rates and financial tools.
The integration of permissioned verification of income (VOI) data into the lending process led to improved efficiency by reducing manual review efforts; the underwriting process becomes 2-5 times more efficient, and overall approval rates of increase by 47%.
Credit union lending team members agreed that Conductiv fills a gap in the loan decisioning process and fits within the organization’s strategy; teams reported that integrating VOI up front allowed for faster funding time for the loan officer and less back and forth between all parties.
In summary, Conductiv demonstrated its value for credit unions to enhance lending performance in multiple ways, including to bridge the gap across all FICO bands, demonstrating commitment to underserved members, and enhancing data accuracy.
