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What is IBV (Instant Bank Verification) and how does it affect my short-term loan application?

You might have been asked to provide bank statements to complete your request when applying for a short-term loan. This article can help you understand why IBV is a secure, simple solution.

What is IBV?

First and foremost, what does IBV stand for? The answer is “Instant Bank Verification.” It’s common practice for lenders to verify information provided on the customer application by requesting bank statements to decide whether to approve or deny the applicant. However, it’s been in recent years with the influx of technology in business that this has begun to change.

In past years, lenders like Net Pay Advance would receive bank statements via fax, then in more recent years through pictures taken by the applicant and sent via text message or email. While this worked for some years, a rise in online fraud made this a less appealing option for consumers. Also, the likelihood of an applicant either owning or having ready access to a fax machine is less and less common.

To provide more security for applicants and to make the process simpler, Instant Bank Verification services started to be utilized.

Why do I need to do IBV?

For brand new applicants, bank verification helps us confirm that applicants are who they say they are, thus protecting customers from potential fraud. Second, if underwriting was unable to make an approval on an application, viewing statements allows us to review more detailed information. This may result in a loan approval, where with more limited information we would have been unable to approve the loan request.

Furthermore, IBV helps to verify updates to a customer’s bank account and/or pay cycle. Again, this is for the security of all parties to verify the legitimacy of customer requests.