What Does a Good Custom API for Credit Reporting Entail?
An API (application programming interface) is a software intermediary that allows two applications to talk to each other. A custom API allows you to design the API around the needs of your own business. Through the use of a custom API, lenders are able to improve efficiency in gathering necessary client information for credit checks, pre-approvals, and any other task that is part of your business operations.
Lenders can streamline processes through the use of an API and eliminate those tedious tasks, like manually scouring through various files from numerous locations. When you improve efficiency in your operations, your business will improve, and customer satisfaction will increase. All of this happens while also decreasing your workload.
So how exactly can a custom API improve business operations for lenders?
Simplify Operations
A lender’s job often involves dealing with complications, but it doesn’t have to. A custom API allows you to simplify the process for qualifying new borrowers and many other essential tasks. A task that formerly involved reaching out to numerous people and waiting for replies can be automated, saving you time and effort.
Because the complicated tasks are reduced, the process of converting potential leads into new clients will be faster and you’ll produce revenue with less effort. Increasing revenue without having to use up more time and resources is what can turn a small business into a powerhouse.
Simplifying operations also allows you to onboard new employees more quickly because training them on your workflow should be easy. All they’ll need to learn is the ins and outs of one piece of software. Once they master the API, all the other tasks become simple.
Stay Organized
Every lender knows that organization is the name of the game. Your job involves keeping track of tons of information about both new and old clients, and disorganized information storage can really slow you down. However, many lenders don’t want to spend a good chunk of their workday doing simple organization of files. Luckily, an API can do that for you. You’ll always have quick access to any document or piece of information you need without spending ages looking for it.
What Does a Great Custom API Include?
Not all APIs are created equally. While a great one can improve your life significantly and lead your business to growth, a bad one can confuse employees, waste time, and disappoint customers. To impress your customers and grow your business, here’s what your API should include.
Fraud Protection
One of the first things a customer wants when choosing a lender is credibility. When they allow you to handle their sensitive information and give them access to bank accounts, they’re putting themselves in a vulnerable situation and putting a lot of trust in you. Your API can build that trust with them by providing fraud protection.
Multi-factor authentication is one of the best examples of fraud protection. One Microsoft report found that multi-factor authentication is able to stop 99% of account compromise attacks. You want your customers to know that they are safe, which is why your fraud protection is an essential feature of a good API.
Risk Checks For the Lender
A good API should help you check that you’re not dealing with any scammers or people attempting to commit fraud. ID verification is a great tool for risk checking. Check that the ID is not fraudulent.
Your API should be able to help you detect signs of both major and minor fraud. Your API should alert you to mismatching information and provide cross-referenced identity verification. In the past, much of these risk checks had to be done manually, and they are not time efficient. Because of this, some lenders got lazy and missed certain steps or they disappointed customers with the length of time they were taking. An API can help you avoid risk with instantaneous checks.
Using an API to check for risk can help you meet customer needs, keep a strong reputation, avoid legal trouble, and speed up the process of closing a deal with a customer.
Archiving Capabilities
Your company’s success relies on a good archiving system. Lost documents and files will frustrate clients and slow down business, while an easy-to-use archiving system enables quick access to information related to both old and new clients.
When you choose an API, it’s important to check if the archiving capabilities are user-friendly and efficient. This will save you from the embarrassment of having to tell a customer you can’t find a document they sent you. You’ll never lose another file again.
Custom integrations to the lender's own CRMs and other software applications
If the API you’re using doesn’t integrate with a wide range of applications, especially your own CRM and other software you use regularly, you’ll lose many of the benefits an API can provide for you. A custom API can usually be adjusted to fit the needs of your business, which is why a custom solution is often the simplest and most effective choice for an API.
Soft Pull Solutions offers API integration that is totally customizable for your needs. This customization enables you to run your systems with the most efficiency possible. When you work with Soft Pull Solutions, your new API can include risk checks, fraud protection, and archiving capabilities.
Reach out to Soft Pull Solutions to learn more about what an API can do to streamline your processes and transform your business.