Cloud payslips: revolutionising the income verification process

The squeeze on households and the unfolding of the cost-of-living crisis allied to forthcoming FCA guidance on Consumer Conduct is forcing lenders to reassess how they confirm an individual’s income.

Manual sharing of payslip data is often required by lenders to verify an individual’s income and employment. Sharing payslip data between consumer and lenders is currently an arduous and time-consuming process – falling short of almost three quarters of loan applicants’ expectations*.

But with 9 out of 10 customers wanting to apply for credit online*, and half the UK adult population aiming to take out a financial product or credit within the next two years*, providing a seamless and convenient digital journey to facilitate this process via the automatic sharing of payroll data, will be crucial.

Fairer finance through the payslip

Recent research from Experian showed that online is the preferred channel for 88% of consumers when applying for credit.

Set this against a backcloth that over a third of lenders still ask consumers to share copies of their payslips by post, and 58% manually review payslips or phone employers to check the authenticity of their employment data.

97% of consumers said they’d shared their payroll data with a lender when asked to do so. But when asked to share payroll data digitally, 46% of consumers said they would be happy to share their payroll data directly with a lender when applying for a mortgage, and 45% when looking to rent a property.

In the era of the 24/7 digital engagement with consumers, current processes for sharing payslip data seem insecure and outdated.

Creating a seamless end-to-end digital process is now possible via cloud payslip solutions that eliminate reliance upon the exchange of old, out-dated, and insecure paper and PDF documents.

Experian acquires PayDashboard and Work Report^TM

The desire to deliver this experience to British consumers has fuelled Experian’s recent acquisition of cloud payslip provider, PayDashboard. The acquisition forms part of a wider strategy to facilitate easier access to payslip data for improved financial well-being for consumers.

Experian is adding its new Work Report^TM service to PayDashboard’s range of capabilities. Work Report^TM allows employees to consent to share their payslip data directly with a lender via their employer’s HR payroll platform. Created in partnership with Salary Finance, Sage, Zellis and IRIS, Work Report^TM enables employees to securely share their payroll data with a lender in minutes to verify their employment and income when applying for a loan.

An improved verifications solution

The addition of PayDashboard will enable Experian to improve financial inclusion and increase insight available to lenders verifying applicants’ employment information quickly and securely.

“At a time of continued business uncertainty and financial pressures, gaining a better understanding of the information provided on your payslip has never been more important. PayDashboard’s solution allows employers to leverage the knowledge of their payroll team, along with the best digital technology, that supports the workforce through the economic turbulence we’re all currently facing” – Emma Davies, Strategy, Markets and Portfolio Director, Experian.

PayDashboard will continue the status quo as a cloud payslip provider to payroll providers and businesses, but increased investment will see an accelerated demand for a truly digital payday experience that will encapsulate the other services offered by Experian.

* YouGov