Income verification is key to financial decisions, but traditional methods aren’t keeping pace. Think about it: payslips and bank statements, while valuable, provide only periodic snapshots of financial health. They’re susceptible to delays, errors, and manipulation – which means businesses are often making significant decisions based on historical data.
That’s where Open Banking makes a difference. Real-time income verification gives businesses direct access to current, authenticated financial data instead of relying on manual document reviews. Now you can see actual income patterns and stability, whether you’re underwriting loans, verifying employment, or assessing rental applications.
In this post, we’ll look at how real-time income verification helps businesses make faster, more accurate decisions while reducing risk.
How real-time income verification works
Verify income by accessing real-time bank account data securely. The process is straightforward:
- Consent request: The business generates and sends a secure Open Banking consent link to the customer.
- User consent: The customer gives permission to access their financial information through the secure Open Banking connection.
- Data aggregation: Key financial data is collected – transaction histories and income deposits – directly from the customer’s bank account.
- Analysis and verification: Algorithms analyse and categorise this data to understand income frequency, stability and patterns.
- Real-time delivery: Results arrive instantly, giving businesses the insights they need to make decisions.
No more manual document reviews or waiting for paperwork. Real-time income verification gives businesses a current, accurate view of someone’s financial position, straight from the source.
Why real-time income verification matters
Speed and accuracy are crucial for businesses, but traditional income verification methods create delays and increase risk. Here’s how real-time income verification addresses these challenges:
✅Accuracy that builds confidence
Payslips can contain errors, be out of date or even fraudulent. Real-time income verification solves this by pulling data directly from bank accounts. The result? Consistent information you can trust.
✅Efficiency that saves time
Document reviews slow everyone down – both businesses and their customers. Real-time income verification automates this process, cutting verification time and improving the customer experience.
✅Fraud prevention
With over 200 fake payslip templates readily available online, fraud is a serious concern. Real-time income verification tackles this by using authenticated data straight from financial institutions. You can’t fake what comes directly from the bank.
✅True affordability insights
Real-time income intelligence shows the complete picture – recurring expenses, income stability and actual spending patterns. This helps businesses make decisions based on true affordability, not just snapshots.
✅Compliance confidence
Sectors such as Financial Services face strict regulatory requirements when assessing customer income and affordability. Real-time income verification helps meet these obligations by providing auditable, transparent data that satisfies regulatory standards.
These benefits show why more businesses are moving to real-time income verification for their lending decisions.
How businesses use real-time income verification
Real-time income verification is enhancing customer experiences across multiple sectors and use cases. Here’s where it’s making a difference:
#1. Lending and credit assessment
Lenders can now verify income by accessing customer bank account data in real-time. This highlights income stability patterns and affordability metrics, strengthening credit decisions and reducing default risk.
#2. Employment verification
In hiring, real-time income verification replaces manual validation processes. This matters particularly for roles with specific income requirements or regulatory obligations, where accuracy is crucial.
#3. Tenant screening
Property managers can see beyond basic income multiples to true affordability. Real-time income verification reveals both income patterns and ongoing financial commitments – key indicators for reliable tenancy.
#4. Financial planning
Advisers can build strategies on verified rather than stated income data. This means more precise financial guidance based on actual financial patterns.
#5. Debt collection
For customers in arrears, real-time income verification enables practical repayment plans based on current financial circumstances, improving collection and customer outcomes.
Each application shows how real-time income data brings precision to financial decision-making. Looking for the best real-time income verification source? Here’s how AperiData delivers this.
Real-time income verification in action
HEY Credit Union, a not-for-profit co-operative serving Hull, East Yorkshire, Northern Lincolnshire, and the YO postcode area, has taken significant steps towards modernising its lending processes. With over 16,000 adult members, 1,350 junior savers, and £14.2 million in savings, the credit union sought a digital solution to improve affordability assessments and speed up loan approvals.
Moving to Open Banking
HEY Credit Union partnered with AperiData, a regulated credit reference agency and Open Banking provider, to enhance its lending processes. AperiData’s technology enables lenders to use real-time financial data alongside traditional credit information, offering deeper insights into customer affordability. This shift has brought the credit union to the forefront of digital lending.
Driving results with Open Banking
Before implementing Open Banking, HEY Credit Union relied on paper-based processes, which were time-consuming and limited in scope. The COVID lockdowns accelerated the need for a digital solution, and AperiData’s platform allowed the credit union to access detailed banking data.
Key outcomes
- Improved decision-making: Access to income, expenditure, and transaction patterns has enabled safer, more accurate affordability assessments.
- Higher approval rates: For marginal cases, the richer data provided by Open Banking has increased loan approvals, particularly for larger loans.
- Faster turnaround: Loan approvals that once took days are now often completed on the same day, giving customers quicker access to funds.
- Cost and time efficiency: Streamlining processes has reduced operational burdens and turnaround times for both the credit union and its members.
Matthew Stevens, HEY Credit Union Chief Executive Officer, said:
By adopting Open Banking technology, HEY Credit Union has strengthened its ability to serve its members, improving access to responsible lending while delivering faster, more tailored solutions.
Read the full case study here.
Keen to learn why the likes of Paypoint, HEY Credit Union and SAS work with us? Take a look at this ⬇
Why AperiData?
Here’s what sets AperiData apart:
Real-time income intelligence
Our Open Banking solution goes beyond simple data aggregation. We analyse income sources, patterns and stability across multiple accounts using our proprietary models.
Deeper affordability insights
We look at the complete financial picture – regular outgoings, credit commitments and spending patterns. This helps you assess true affordability with current, verified data.
Simple API integration
Our API-driven approach means our real-time income intelligence feeds directly into your existing systems. No complex integration projects required. Plus, we also have a no code option for those who don’t want to integrate.
Rapid deployment
Start verifying income in real time today. Unlike traditional implementation timelines, our Open Banking solution gets you up and running quickly.
Regulated assurance
As a regulated credit reference agency and Open Banking provider, our real-time income verification meets the highest regulatory standards. You get reliable data while maintaining regulatory requirements.
Built for modern lending
Our real-time income intelligence helps you confidently assess customers with variable income streams. Make faster, more accurate lending decisions based on current financial data.
AperiData gives you the tools to verify income quickly and accurately, improving lending decisions across your business.
Embrace real-time accuracy: Your next step
Static income data—like payslips or annual statements—simply can’t keep up with the pace of modern financial life. Gig workers, Buy Now Pay Later users, and others with variable incomes often fall through the cracks, leading to misinformed decisions and missed opportunities.
Our real-time income intelligence provides you with the insights needed to adapt. Faster approvals, reduced risk, and better outcomes for borrowers and businesses alike are within reach. Want to see how our real-time income verification could work for your business? Contact us to learn more or book a demo.
