While other segments of the economy are struggling, Equifax highlighted that vehicle sales showed strength at the end of 2020 in spite of the economic impacts of the COVID-19 pandemic.

And Equifax is trying to help make sure the industry stays in that position through its latest solutions.

To assist dealers and finance companies more effectively manage the increased volume of applications, Equifax rolled out StipClear Employment and StipClear Income this week.

Tailored to meet the verification needs of the auto industry, Equifax highlighted both products include The Work Number database information, which can help to automate the origination process and verify information provided on applications.

According to a September McKinsey study, Equifax noted that digital processes are becoming more important along the entire vehicle-purchase funnel. The study concluded that two-thirds of younger consumers prefer a digital format for conducting car purchases.

This trend, combined with a recently reported rise in fake pay stubs submitted with auto-finance applications along with current social distancing sensitivities, has led many dealers and finance companies to begin making more committed moves toward digital processes, according to Equifax.

“It’s clear that the automotive industry is moving very quickly towards more simple, streamlined and online auto financing environments,” said Lena Bourgeois, senior vice president of automotive services at Equifax.

“Dealers and lenders alike want and need to incorporate digital solutions into their process,” Bourgeois continued in a news release. “Digitizing the verifications process with The Work Number helps them to structure new and used auto loans more efficiently and offer their customers quick decisions.”

Equifax said automated employment and income verifications through The Work Number database can benefit dealers, finance companies and consumers.

Digital verifications tap into more than 111 million active employment records in The Work Number database, including many small- to medium-sized businesses as well as hundreds of thousands of 1099 records that can help to accelerate funding decisions and help to eliminate the need for phone calls and pay stubs.

Data analysis from Equifax also showed that when applicants’ income and employment are verified by The Work Number, those auto applicants are 40% more likely to be funded.

“With automated verifications of income and employment, paper pay stubs may be taken out of the equation,” said Joel Rickman, senior vice president of verification services for Equifax.

“When information is provided by The Work Number, consumers don’t have to collect pay stubs and lenders don’t need to spend extra time validating them,” Rickman continued. “Digital delivery of employment and income verifications helps reduce uncertainty, clear stips and allows the buyer to close the transaction and drive off in their new car.”

Equifax went on to mention the finance company may place a stipulation on the contract approval, indicating that the applicant is approved, and the deal will be funded.

Equifax added credentialed finance companies also can clear the stipulation quickly and seamlessly using one of its auto products to verify income or employment information through The Work Number database.

For more information on automotive verification solutions from Equifax, go to this website.