M2P Fintech, an API infrastructure company, announces its partnership with Tartan, a Payroll and Work Platform APIs Connectivity company, to become the first-of-its-kind player in India to provide consent-driven data of user’s current income and employment through Payroll APIs to lenders.
Through this cooperation, partnered banks and NBFCs will gain access to fully encrypted, comprehensive data directly from payroll systems to automate income and employment verification thereby enabling lenders to offer NTB customers instant, innovative, and customized lending products.
Through Tartan, once the verification and eligibility criteria are swiftly ascertained, partnered banks and NBFCs can leverage M2P Fintech’s Core Lending Stack (CLS) that seamlessly integrates RegTech, LendTech, and BankTech capabilities to offer customized lending solutions from onboarding to collections.
Using the CLS, M2P’s partner institutions can instantly verify payroll data to issue a line of credit to their NTB customers that can either be in the form of Buy Now Pay Later lines or credit cards or personal loans, without having to manually enter, verify or validate customer information making it a fully digital, real-time, straight through process thereby enhancing customer experience significantly.
Madhusudanan R, Co-Founder, of M2P fintech commented, “Although consent-driven payroll API is a relatively new way of validating ability to pay. Tartan’s Payroll API, by offering this ability, allows for underwriting journeys to be made seamless. This coupled with Account Aggregator framework can make the entire loan origination process paperless and real-time, a key tenet of the Core Lending Stack that we rolled out last month that is witnessing tremendous response among Banks and NBFCs alike.”
India has a salaried population of approximately 77 million (Dec'21 CMIE statistics), of which 60 per cent reside in urban areas. 85 per cent of credit cards issued are to salaried individuals. Income and employment data are the pillars of risk assessment for loans and credit cards, although their validation and verification are still performed manually.
In the current circumstance, reviewing a customer's pay and employment information typically takes between 24 and 72 hours. This is a considerable waiting period for NTB customers, the majority of whom fall in the millennials or Generation Z segment who want everything instantaneously and at their fingertips.
“Verifications by and large have been a manual, inefficient, and error-prone procedure susceptible to human error and frauds. By allowing individuals to connect their HRMS account to our API, we can validate income and employment data from their employer in less than a minute. We are delighted to partner with M2P Fintech which we feel is the ideal partner to help us use organized, standardized & user-permission data to benefit our combined user base. We look forward to collaborating with them to tailor more solutions as we pursue our social purpose-driven mission, which is to provide access to financial services
and products for millions of working people in India and throughout the world so they may be financially stable and live a happy life.” said Pramey Jain, Co-founder and CEO, Tartan.