NextGen, an Australia-based lending solutions provider, has introduced its Automated Income Verification feature in ApplyOnline through Open Banking.

This feature aims to modernize income assessment for lenders by moving away from traditional document-based processes towards secure and automated data-driven evaluations. The initial release focuses on PAYG (Pay As You Earn) income verification.

Streamlining the Lending Process with Open Banking

Data analytics and AI technologies are making significant strides, but lenders still heavily rely on manually handling payslips and OCR processes, which can slow down processing times, increase operational costs, and create an unpleasant experience for applicants.

To address these challenges, NextGen has developed a solution that encourages lenders to abandon manual procedures in favor of Open Banking’s secure and efficient data verification. This feature is available for both broker and lender workflows within NextGen’s ApplyOnline platform, requiring no additional third-party integrations or separate platforms.

The system can access real-time transaction data with applicant consent, analyze salary patterns, pay frequency, and employer consistency, and furnish assessors with a comprehensive view of the income verification status and related supporting data. It also automatically adjusts document requirements based on the verification outcomes.

This advancement will enable lenders to make better and faster decisions, leading to quicker approvals and reduced turnaround times. By leveraging secure and accurate Open Banking data for assessments, lenders can minimize risk and fraud exposure while enhancing operational productivity. The solution reduces manual workload and document requests, offering a more streamlined origination experience that boosts customer satisfaction.