"You've built a lending process that works. Your team is efficient, your systems are dialed in and you've invested in technology to stay competitive. But if you still rely on credit reports, static databases or third-party records that borrowers didn't explicitly authorize, you're not as modern as you think. Consumer expectations have shifted. In a world where privacy and transparency matter, outdated data practices are more than just annoying; they're trust killers."
"Today's consumers are accustomed to controlling what they share, when they share it and with whom. This expectation has been reinforced by privacy laws like the California Consumer Privacy Act and the EU's General Data Protection Regulation, which have made it clear that consumers deserve transparency and control over their personal data. More recent developments, like the California Privacy Rights Act's enforcement of data minimization and purpose limitation, make it riskier than ever to collect more than what's necessary or to do so without clear"
Lenders that rely on credit reports, static databases and third-party records without explicit borrower authorization face outdated, error-prone practices that damage trust. Legacy verification of income, assets and employment slows processes, frustrates borrowers and creates inefficiencies. Consumers now expect control, transparency and permissioned access to personal data, reinforced by privacy laws such as CCPA, GDPR and CPRA. Consumer-permissioned models let borrowers grant real-time access to payroll, bank and document sources, reducing manual uploads and HR checks while producing verified, current information. Adopting consumer-permissioned data minimizes legal risk, improves borrower experience, accelerates decisions and uncovers new opportunities.
#consumer-permissioned-data #privacy-compliance #digital-lending #income-and-employment-verification
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