Verifying a borrower’s income is an integral part of the lending process.
However, manual reviews tend to be tedious and time-consuming. Your team gets forced to spend hours pouring over financial documents instead of approving more loans. That’s why it’s critical to stay up to date on the latest technology that can automate the process and keep your business competitive.
The lending industry has seen several changes recently, primarily due to public upheavals such as COVID-19 and fluctuating interest rates. Application volume is high, but so are customer demands. Borrowers expect their loan approvals to be fast and accurate.
Technology can help you meet these demands by providing an automatic income verification process. With the right platform, all of your borrower’s bank statements get automatically processed and analyzed, eliminating the need for manual verification.
Common proof of income documents
Depending on the type of loan, lenders may require multiple proofs of income, such as:
The proof of income used by each borrower varies based on profession and income. Someone who works a 9-5 job will have access to paystubs and W2 forms, while a wealthy retiree may have investment portfolios. They both might have bank statements.
Bank statements are among the most common documents used for income verification. Bank statements show the movement of funds into and out of an account and provide insight into the borrower’s income, spending, and debt repayment history. Retired and self-employed borrowers often use bank statements as proof of income.
Why use bank statements for proof of income verification
Bank statements can offer an accurate and up-to-date snapshot of the borrower’s financial situation. These documents show if the borrower can repay the loan. You’ll be able to check for a consistent cash flow with regular deposits.
Bank statements are also easy to obtain and can be used to verify income quickly without waiting for tax returns or pay stubs. This makes bank statement analysis an ideal solution for busy lenders.
How to automate income verification with bank statements
Before you can start automating bank statement income verification, you should carefully consider the right automation software. The best software for most lenders is cloud-based and uses advanced AI and machine learning algorithms to analyze documents in minutes.
With Ocrolus, you transform PDF bank statements into JSON in Excel. It’s easy to set up, and you can customize the fields important to your institution. AI powers the process; however, it’s ultimately controlled by you.
Automated data extraction and bank statement verification are significantly more accurate than fully manual processes.
Automated proof of income verification advantages
Analyzing bank statements is a core part of your work as a lender. When your strategy includes automation, everything becomes faster.
Automated income verification lets you make decisions on more loans in less time. It also reduces human error. You can feel confident that the data you’re reviewing is accurate and up-to-date.
The increased accuracy allows for easy conversion to different document types. Ocrolus can convert PDFs into typo-free Excel spreadsheets. In seconds, the platform can do work that would take your team hours to manually complete.
Automated solutions are also more secure. Limiting the human role in verification reduces your risk of data breaches due to unauthorized access or user error. You’ll also have access to built-in fraud detection designed to find document discrepancies.
Income verification is essential for any lender or financial institution. Automating the process is an efficient way to approve more loans and keep your borrowers happy.
Efficient and reliable income verification with Ocrolus bank statement analysis
Ocrolus is an advanced solution for automating bank statement verification. Our technology uses AI to analyze PDF bank statements and other documents accurately in seconds. With Ocrolus, your team can focus on more complex aspects of the business.
We make it easy to quickly convert PDF bank statements into usable Excel data, and you’ll enjoy an increased accuracy that manual processing simply cannot match. Ready to start automating bank statement income verification?
Connect with an Ocrolus automation expert to learn more about automating the proof of income verification process. Book your demo today.