Published on 8/31/2023

What is IAV and why do I need it?

IAV and why you need it really depends on who you are. Let me explain. First, what is it? IAV or Instant Account Verification (also called Instant Bank Verification or IBV) is a powerful tool for lenders and consumers alike. It’s a digital, read-only version of your bank transaction data. 
For lenders, it allows you to virtually eliminate fraud as the information comes straight from the borrower’s financial institution. This means there is zero opportunity to alter the information in any way. It also reduces default rates as you have a clear view of whether the borrower has recently obtained other loans, reducing your risk of exposure. 

Additionally, IAV saves time and money by significantly streamlining the old process of waiting for and processing hard copy bank statements. With no standardized bank statement formatting (seriously, how is this still a thing in banking?), you waste an enormous amount of time trying to locate a single data point. 

There is also the extremely high amount of friction it causes to ask the potential borrower to download and print a statement. Most have to physically slog into a bank, probably begrudgingly waste their lunch hour, to wait in line and talk to an eerily cheerful bank teller who will charge them (yes! it costs money to get these) to get a copy of their bank statement. Then they have to drop off or scan and upload said bank statements. It’s about as high friction as it gets. Reducing friction and time wasted creates better relationships in any scenario.  Why wouldn’t you offer this to your customers?  

A bonus that DecisionLogic specifically adds to the IAV experience is identity verification powered by Experian which can be used in conjunction to further mitigate fraud. (Added bonus – this will make your legal and audit team very happy).  We are also fully FCRA compliant, again prompting happy noises from legal. Lastly, it boosts your KYC factor, which we can all appreciate. 
DecisionLogic injects our proprietary Summary Analytics and Payroll scoring into our statements, so you have critical data points at your fingertips to further expedite the decisioning process. And the best part is that it’s included in every statement, no expensive add-on required.
Thanks for sticking with me, I saved the best for last! If you’re a consumer, why would you care about Instant Account Verification? I know it sounds like it’s all a benefit to the lender and it does make their life easier BUT if you made it this far, you saw it eliminates that trip to the bank to pay for hard copies. Most of us have had to do this for one thing or another and it’s no picnic. 
With IAV, borrowers get to avoid that whole mess. It’s all digital, so you can apply for a loan in the comfort of your home, at 10 pm, in your llama jammies, while you’re waiting for your pizza rolls to toast. Doesn’t that setting make everything better? Applying for a loan is stressful enough, there is no reason to add a quest for hard copy bank statements to the mix. 
Another huge benefit of IAV is because you step through the process faster, the lender gets the details they need faster, which means you could potentially get your approval faster. And that’s money in the bank…literally. At DecisionLogic, we designed our process to be as simple and fast as legally possible. You’re looking at 2 steps that take less than 2 minutes. And if you get stuck, we have an onsite support team that is happy to help you! Not kidding, it’s real live people that genuinely love helping people. They are also available via email if you “just can’t” with people today. 
Last but not least, IAV (especially DecisionLogic’s IAV) is extremely secure. With Open Banking connections to the top institutions, you are logging in directly to your bank. You never give your username or password to anyone. It’s not saved, and it can’t be seen by the lender or us. The lender has no access to touch or change anything in your account. They get a read-only copy of your transactions and balances to be able to make their underwriting decisions. And it’s up-to-the-minute so if your payroll is posted today, it will show today. No back and forth with the lender or having to also show paystubs. 
We are CCPA compliant too, which is a California law that protects consumers. At DecisionLogic, we believe all consumers deserve the highest level of protection, so we extend these statutes to you regardless of what state you live in. This means you have control over your information. If you want to see exactly what the lender sees, you can! If you want to delete it altogether, you can! If you want to dispute it with your bank, (be polite, they have your money), we will give you the information you need to do that too!
As you can see, the speed, security and convenience of IAV is something everyone needs.