Earlier this week, advanced bank verification solutions provider DecisionLogic announced that it has exceeded 40 million customers as its instant bank verification technology reaches the mainstream. The company’s pioneering technology allows lenders to instantaneously qualify prospective borrowers on the basis of the applicant’s banking history, improving the asset verification process and enabling a larger number of consumers to access funds in times of need.
DecisionLogic first launched its bank verification solutions product in 2011. Since then, adoption of its technology has become a widespread underwriting tool for consumer finance companies, merchant lenders, mortgage brokers and other major financial institutions both in the United States and abroad. The company also recently became a member of FDX alongside other industry leaders such as American Express, Bank of America, Capital One, Chase, TD Bank and USAA.
One notable feature of DecisionLogic’s bank verification solutions product is its use of proven and advanced analytics and scoring that go beyond traditional measures of consumer creditworthiness. To demonstrate DecisionLogic’s process, one publicly-traded global lender evaluated 30,000 loans in a head-to-head AB test. Half of the loans assessed has been approved using credit scores and traditional subprime credit bureau data; the remainder had been evaluated using DecisionLogic’s bank verification process. The lender found that DecisionLogic’s approved loans had a 40 percent drop in first-time default rates compared to traditionally approved loans.
The announcement of its 40 millionth customer comes close on the heels of DecisionLogic’s partnership with U.S. Bank. Under this partnership, U.S. Bank customers will have direct access to DecisionLogic solutions, allowing them to immediately receive loan approval and access capital expeditiously.
Following the announcement, DecisionLogic CEO David Evans reflected on his company’s journey: “When we started DecisionLogic, the industry was incredibly tied to the credit score as the primary means for making underwriting decisions. But times have changed – online banking and financial technology have gone mainstream, and consumers and financial institutions now expect fast, secure services and an alternative to the traditional FICO score. In hitting the 40 millionth customer mark, our Instant Account Verification technology has become the primary form of alternative lending verification.”