Paycheck Linked Loans

Overview

Truv's Paycheck Linked Loans product allows your users to repay loans by redirecting a specified dollar amount directly from their paycheck via their payroll provider to your account.

We gather and modify data directly from their trusted payroll source reducing loss rates and increasing the serviceable market by enabling customers to pay their loans directly from their paycheck.

Paycheck Linked Loans can be useful for deducting loan payments directly from a paycheck. Users can instantly complete transactions and update their direct deposit settings instead of waiting for a few days.

Use cases for Paycheck Linked Loans:

  • Loans are automatically paid through a preset distribution from the borrower/employee's paycheck, ensuring and greatly mitigating the risk of default.
  • Servicing customers in the subprime segment with low/no credit scores.

Where to embed Truv in your workflow

There are a few important decisions to make to effectively design and integrate Truv into your User Experience.

1. Where in your current process do you want to leverage Truv?

Truv can switch direct deposit in the payroll account and allow you to use that functionality at various stages of your application process:

  • After VOIE - After the verification of income and employment you can make a decision and allocate part of the paycheck from their payroll within seconds.
  • Continuous access - have Truv maintain consistent access to the payroll and employment data to automatically update your system

2. How do you plan to onboard/off-board users?

We've built an intuitive UI/UX that leads to increased conversion rates over traditional methods. To further increase conversion rates we recommend educating your users about connecting to their payroll by explaining the benefits and setting the right context.

3. Do you need continuous access to the most recent user data?

Truv's platform can proactively pull income and employment data from the connection daily and, when any user information changes, such as a new bank account added or employment status, Truv will notify your system.

Depending on the payroll system, when a session for a specific connection expires, there needs to be a flow to bring the user back to the application to re-authenticate using Truv Bridge and restore the connection to the payroll system.

Additionally, we recommend giving the user the option to disconnect their account and delete all the data from the system.