Startup FinTech Plaid Introduces Plaid Income, a product designed to streamline the income verification process, making it easier for consumers to get loans, rent apartments and more, according to a company blog post.
The company noted that income and employment verification is critical to processing loan applications, but it is usually a cumbersome and time-consuming process. The new Plaid Income product offers a one-stop simplified solution for income verification that aims to reduce friction for lenders and applicants.
The new tool expands authorized data access by consumers to include payroll information, giving users more control to digitally verify income and employment directly from their payroll provider. Plaid Income aims to help financial institutions (FIs) make better decisions using authoritative data on income, taxes and employment.
âAt Carputty, a key to providing a faster, easier and more transparent auto finance experience is being able to quickly verify the applicant’s financial information. Plaid Income allows customers to easily and securely share their information digitally, eliminating what is often a major source of friction and stress in the traditional car buying process, âaccording to Joshua Tatum, co-founder and product manager (CPO), Carputty.
Sahil Vakil, founder of MYRA, is another Plaid user. âAt MYRA, we enable an underserved segment – immigrants – to manage their US finances,â Vakil said in a statement. “Plaid plays an important role in MYRA’s ability to provide a diverse, equitable and inclusive financial ecosystem for internationals.”
The new Plaid Income solution is currently in beta mode, and there is a waiting list to join.
âADP and Plaid are actively working on a partnership around Consumer Authorized Payroll Data that will allow consumers to access their payroll details without credentials using ADP’s API,â said Meraj Mohammed, Vice President, ADP Ventures.
Plaid offers real-time payroll authentication to over 250,000 of the nation’s largest employers, as well as 80% of Fortune 100 companies. It includes authorized data of people in all types of jobs – on time full, part-time, self-employed and workers in the odd-job economy.
In one interview with PYMNTSJamal Ayyad, Product Manager at SurePayroll, said more organizations are digitizing payroll operations and payroll data is becoming an increasingly valuable asset for CFOs.
Plaid said in January he plans to double its size in Europe. The Silicon Valley startup plans to increase the number of employees in London and Amsterdam to 80, from 40 to 50 staff.