LendSaaS may now be used with DecisionLogic. But how will this benefit your MCA business?
DecisionLogic is famous for its Instant Account Verification (IAV) System. Their software is extensively utilized and trusted throughout the MCA business. When paired with LendSaaS MCA software, the technology is one of the most efficient in the industry.
What is DecisionLogic?
DecisionLogic’s revolutionary Instant Account Verification (IAV) is a technology that has helped lenders make critical lending decisions swiftly and precisely since its inception.
A borrower’s identity, account number, and balances may all be verified in real-time using this service.
Access to up to 365 days of account transaction history is also provided. This real-time, digital approach greatly simplifies and expedites traditional techniques of loan decision-making.
IAV helps lenders make quick and accurate judgments that are crucial to their company.
DecisionLogic’s goal was to make this technology better for both consumers and financial service providers, which has had a positive effect on the financial sector and opened up access to financial assets for a large group of people.
What Makes DecisionLogic So Effective?
The system was designed in the aftermath of the 2008 financial crisis, which was exacerbated by the loosened qualification criteria for the approval of house mortgages, where many applicants were providing falsified statements to get approvals for mortgages they were not eligible for.
Many borrowers were given mortgages they could not afford because of a lack of technology to check that the bank information they provided during the loan application process was accurate.
Because of this, people were left with mortgages they couldn’t afford and ended up losing their houses in the resulting property bubble.
The development of the financial technology markets expanded to the commercial side of things as a result of these changes. In the banking industry, DecisionLogic is now the norm.
Lenders use DecisionLogic to check bank information quickly and simply so that they can make an informed decision about who they lend to, a technique that benefits both the borrower and the lender since it prevents them from taking on a loan they can’t pay back.
Because of this, DecisionLogic not only virtually eliminates fraud, but also raises the bar for the whole financial sector.
How Does DecisionLogic Work?
The fact that you’d be worried about how your data would be used if you were applying for a credit or loan is understandable.
The information retrieval procedure might be time-consuming for lenders, so you may be wondering how DecisionLogic can help.
The following is a step-by-step summary of the process:
#1 Send a Link
It sends people who apply for a business loan or cash advance a unique link through text message or e-mail before they can get their money.
#2 The Customer Opts-In
The next step is for the applicant to provide their bank details. Keep in mind that this connection can only be used once per financial institution (but you get 3 attempts), so after the link is utilized, it can’t be accessed any further.
#3 Opt-In Succesful
After the online banking credentials have been entered, and any bank provided security
questions answered, the opt-in process and the verification process is done.
People who have successfully completed the process are sent a message, and they are
then automatically sent to the lender’s website.
Be aware that if the applicant doesn’t fill out any bank provided security questions in the
allotted time, the link will count it as a failed attempt.
As a result, only underwriters will have access to the data, as well as rigorously date-to-date company statements—not DecisionLogic or the lending institution.
#4 View Bank Statement
Applicants’ bank statements are now available for lenders to inspect for verification reasons. For the lender, this also provides a means of connecting through the API and expediting the loan process.
A read-only version of the applicant’s business bank statements is sent to the lender just to aid in the decision-making process.
There must be a positive current balance. Borrowers will immediately see a decline if they are overdrawn
At the time of the check, they should have at least 2 to 3 times the new payment. If they don’t, they might be turned down for the loan offer.
It just takes a few minutes to finish the full procedure.
DecisionLogic Features and Alternatives for Lenders
Should you utilize DecisionLogic as a lender? What are the perks? How many services are there inside DecisionLogic?
Considering that DecisionLogic was the first to develop the technology, it’s difficult to do a thorough assessment since there aren’t many companies providing a service like theirs on the market at this time.
However, you do have a few products to choose from:
DIAV (Instant Account Verification)
It’s the flagship product offered by DecisionLogic:
The following are some of its highlights:
- No contracts or monthly minimums – upfront pricing, no hidden fees
- Zero tech required Lender Portal – start lending as soon as the next day
- Very simple integration process – with unlimited tech support at no additional fee
- Unlimited Training – for you and your agents at no additional fee
- Unlimited customer and borrower support – via phone, email, and chat at noadditional fee
- Account balances, analytics, and transaction history up to 365 days
IDV (Identity Verification) product powered by Experian offered by DecisionLogic:
The following are some of its highlights:
- Combine venders – IDV and IAV in one invoice
- Zero friction – no borrower interaction required
- Available in our Lender Portal and via API – accessibility that fits your business
- Unlimited tech, customer, and borrower support – via phone, email, and chat at no additional fee
- Available in combined with an IAV request or as a standalone – put it anywhere in the waterfall
- Validate, name, address, phone, email, SSN driver’s license details with the option ofadditional data returns (previous addresses, other known names)
Financial Data Services from Finicity (Alternatives)
If you’re looking for another service that gives you access to as much financial data as possible while also easing the qualifying process for your customers, have a look at Finicity as an alternative.
Finicity is a data aggregator rather than a single solution, and it can accomplish a variety of things when it comes to securing financial data.
Most importantly, with Finicity’s Account History Aggregation, you have access to 180 days of transaction history, which is twice as much data as DecisionLogic 365 can provide in a one-time pull.
Information like this is similar to that found in the company’s 90- and 365-day services from DecisionLogic, and it contains information like:
It also has the ability to check ID and account information, which makes Finicity’s financial data services similar to DecisionLogic’s first service.
DecisionLogic Frequently Asked Question (FAQ)
What Does Decision Logic Do?
It is an innovative SaaS platform for bank verification. DecisionLogic allows lenders to check a prospective borrower’s banking information online and in real time.
Previously, this procedure was plagued with inaccuracies, delays, and fraud for both the lender and the borrower.
Consumers and financial service providers may both benefit from DecisionLogic’s technology for verifying assets, which was made to improve the financial services industry and make financial assets more accessible to more people.
What are the most recent improvements to DecisionLogic?
- In addition to payroll and ACH, the revenue categories of military pay and other income will be expanded. Defense Finance and Accounting Services (DFAS) salaries and allotments are included in military payroll, which is especially useful to lenders wanting to comply with the Military Lending Act. The granularity with which non-standard income sources, such as retirement income, unemployment benefits, government benefits, child support, tax refunds, and pension income, can be recognized using “other income” is astounding. A new self-employment category has been added to this area, which accounts for platform revenue from companies like Uber, Lyft, and DoorDash.
- extension of categories relevant for determining a borrower’s capacity to pay back, including wage garnishment payments, court-ordered debits (civil and tax), overdraft fees, debt collection payments, and other qualified transactions. To quickly see if a loan application has any red flags that need to be looked into, lenders use these types of things.
- There should be an increase in the number of transactions that correctly signal various forms of loans, such as mortgages, credit cards, and auto loans.
- Overdraft protection, wire transfers, ATM withdrawals, and ATM deposits are just a few of the analytics categories added to accounts. With advanced analytics surrounding these actions, lenders are alerted to possible signals that could help them figure out important things about a borrower’s behavior.
DecisionLogic’s algorithms employ thousands of business rules to classify and summarizes each bank transaction, making them particularly valuable in spotting possible fraud from potential borrowers.
Next-generation features will allow lenders to make their own categories and give each result more weight so that they can offer unique, lender-specific scoring and filtering.
Who is Behind Decision Logic?
CEO David Evans is the founder. He has more than 25 years of experience as a Chief Technology Officer and has served as a Scientific Adviser to the UK Government.
An increasing number of fake bank statements are being used by businesses to get loans, and the DecisionLogic program was made to help lenders quickly check financial information in order to fight this rising problem.
The co-founder and president of DecisionLogic, David Evans, once said:
“Over the last year, we’ve worked tirelessly to expand our bank verification products while maintaining a consistent user experience. To make matters even more complicated, our clients have to deal with dramatically different bank statements based on their particular bank reporting as well.
With our summary analytics, lenders are able to use deep data mining and benchmarking to enhance their processes and compete on an even playing field in terms of underwriting decisions.”
Mr. Evans continues, “It is our belief that a person’s creditworthiness may be determined by looking at their bank account statements.
It is possible for DecisionLogic to leverage the power of data to help our clients lend more, in less time, and with higher accuracy since we have already serviced more than 25 million consumers via our platform.”
Is DecisionLogic a Scam?
Having a healthy sense of skepticism about any service that requests access to your financial data is only normal. more so these days, with the prevalence of large-scale data breaches and other cyber-related frauds.
After all, in this day and age of information, even the most basic pieces of data may be abused.
Some prospective borrowers, on the other hand, believe that DecisionLogic is a phishing scam aimed at obtaining their personal financial information.
That, however, is NOT true.
DecisionLogic is now a well-known source for both borrowers and lenders because it works with more than 50,000 financial institutions.
According to DecisionLogic’s whitepaper, “We have worked with premier credit and financial data providers across the globe and provide a unique data provider aggregation environment.”
DecisionLogic has used the most recent technology from these data providers to come up with a solution that is cutting-edge, easy to use, effective, and safe.
DecisionLogic is a trusted partner for many lenders. They help speed up the loan process for both the lender and the applicant.
Are Your Banking Credentials Stored By DecisionLogic?
Applicants often ask about this throughout the loan application procedure.
But the answer is clear: Your login details are not stored by DecisionLogic.
To prevent fraudulent loans, the technology enables lenders to access the previous 12 months of banking activity as well as to cross-reference the data obtained when applying for a loan to ensure that the data is accurate.
Additionally, it enables the financial institution to monitor your current month’s activity to avoid potential borrowers from obtaining two loans from separate lenders at the same time and thereby over-leveraging themselves and being at risk of default as a consequence.
Making the loan application and qualifying procedure as simple and painless as possible for your potential clients is an important goal for a lender.
Filling out a ton of paperwork and then scanning and sending copies isn’t fun for anybody.
Forget the headache of finding and mailing out your company bank statements. LendSaas with DecisionLogic support is a cutting-edge, secure technology that provides a simple and fast solution that just takes minutes to complete.
If you use an automated financial statement solution like DecisionLogic, you will be able to speed up your application process and stop having to put together and send bank statements to your customers.
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