Intended to target the subprime space, MicroBilt recently launched Bank Account Verify Advantage (BAV Advantage); a new product that uses verified bank data to assist auto-finance companies and other lenders in scoring applicants.
MicroBilt highlighted that BAV Advantage looks across a proprietary database of more than 150 million consumer records and 1.5 billion ACH and check transactions to deliver what the company says is “a full 360-degree” view of a consumer’s loan and bank performance history — including loans associated with that bank — based on a submitted account and routing number.
“BAV Advantage uses an algorithm to assess an individual across a multitude of data points including risk factors associated with financial institutions. The product returns a score on the same scale — and with the same implied meaning — as a traditional credit score,” MicroBilt’s Sean Albert said.
In addition to the score, the report can return data to both inform the decisioning process and protect the finance company from fraud.
“We match the account number to the bank’s formatting. We match the routing number to the bank. We confirm the submitted name matches the account name,” Albert said.
Additional data returned includes the current status of the bank account, verification of ability to receive ACH transactions, a 36-month history of MICR and loan transactions, and flags for risk factors that might impact the ability to repay a loan.
Keith Goodnight at MicroBilt explained the inspiration for the new offering.
“We designed BAV Advantage for the subprime market. With BAV Advantage, lenders can look at the individual’s banking behavior, at how they historically handle money,” Goodnight said.
“It gives them actionable data sources where they may not have had them before. It also gives a fair shake to people who might not have a traditional credit score,” he went on to say.