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Personal Lending
VoIE,
Paycheck-Linked Lending

How One Lender Uses Argyle’s One-Click Application to Fortify Underwriting & Increase Conversions

Learn how one online lender uses Argyle to verify employment data, improve conversions, and make faster, better decisions on federal employee loans

Since implementing Argyle, one lender turned its highly manual and slow loan approval process into a one click solution. Argyle's employment data pipeline means fewer qualified users are turned away and fewer users are approved for loans they can’t afford, lowering the lender’s risk of default.

Measurable successes

With Argyle, the lender’s application conversion rate has grown to 85%.

The background

Loans for federal employees

As a benefit of their service to the government, federal employees are eligible for special low-cost, fixed-rate loans. These loans are especially attractive to applicants with low credit scores, who would otherwise have trouble accessing a loan with favorable terms. 
One lender specializing in federal employee loans stands apart from the competition by offering its users reasonable, worry-free repayment plans, with no credit check. The lender also bills itself as having same-day funding—a promise that was difficult to live up to at first.

The problem

Inefficiencies were high and conversions were low

In reality, the process of reviewing an applicant and funding a loan was slow and cumbersome. To qualify users for a loan, the lender needs to determine:
  • If they are actively employed by the federal government
  • How much they make
  • If they are who they say they are
Historically, that required users to fill out a lengthy digital form and upload a recent pay stub, which the lender would use to manually verify their employment and income data and personal identity. 

This workflow was clunky, time-consuming, and full of friction for users, resulting in high application abandonment rates. What the lender needed was trusted information plus a quick and seamless user experience to improve conversion.

The solution

Going from an extended timeline to just one-click process

By partnering with Argyle, users grant the lender practically instantaneous access to the robust, real-time employment data stored in their online federal payroll accounts, enabling:
1. Income Verification: Users simply select their employer from Argyle’s comprehensive database and enter their login credentials like they would at work. With the connection made, Argyle acts as a data transfer agent, transmitting the employment and income information the user consented to sharing.
2. Paycheck Linked Lending: Argyle enables the lender to offer automatic pay allotment setup. Previously, before the lender could disburse funds to an approved user, it had to ask the user to jump through hoops with a cumbersome ordeal rife with clicks, toggling, and waiting. Now, with Argyle’s ability to automate direct deposit updates, the user can consent to the allotment with one click, saving both parties time and hassle, and making it possible for the lender to live up to its promise of same-day funding.

The results

Climbing conversions

Argyle reduces overall workflow friction, making it easier for users to complete their loan application. For the lender, that has translated to an 85% conversion rate—a significant improvement from its pay stub days.

Faster, better, more confident lending decisions

Argyle connects directly to the employment data source, providing consent-based access to up to 140+ rich data fields. As a result, the lender is now able to view and consider a trove of user information it wasn’t privy to when pay stubs formed the backbone of its verification process, including:
  • Real-time employment status (active or terminated)
  • Hire date and tenure
  • Payout information
  • Gross and net income
  • Name, birthdate, and address (anti-fraud protocol)
  • Bank account and routing numbers (know-your-customer check)
With a more comprehensive understanding of its users’ employment data and income level, the lender is empowered to make faster, better, more confident lending decisions. That means fewer qualified users are turned away and fewer users are approved for loans they can’t afford, lowering the lender’s risk of default.

Less time to decisioning

By making the user experience more seamless, and eliminating the need to perform pay stub verifications, Argyle also increases speed to approval and funding. In turn, Argyle is creating efficiencies that will help the lender underwrite more applications and scale over time.

The future

Looking to new specialized markets

Argyle is also opening up opportunities for expansion. Because Argyle’s coverage extends far beyond federal employers, the lender is considering branching out to serve other niche communities like gig economy workers—a group whose employment data has historically been challenging to verify. By leveraging the power of Argyle, which covers 95% and counting of the U.S. gig economy, the lender is exploring an expansion of their target audience, a move that could create more potential for growth.

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