Truework, an income and employment verification platform utilized by banks, lenders, property managers and employers, as we speak introduced a strategic partnership and $24 million in fairness funding from shopper credit score reporting large TransUnion.
Founded in 2017, San Francisco-based Truework integrates with third-party companies, comparable to payroll suppliers, to assist mortgage suppliers and comparable lenders confirm customers and approve loans immediately from inside their very own purposes. It can be utilized by landlords or would-be employers to hold out background checks.
With its newest partnership, which quietly went stay just a few weeks in the past, TransUnion will successfully be promoting Truework’s income verification product alongside its foremost credit score product, which means {that a} TransUnion buyer comparable to a financial institution will be capable to entry each credit score and income knowledge by a single API.
“Having both data sets accessible via the same API and vendor is powerful for the lender and customer,” Truework co-founder and CEO Ryan Sandler defined to TechCrunch. “Especially for the thousands of customers who already use TransUnion for credit data.”
The Equifax issue
Today’s announcement comes some 10 months after Truework closed a $50 million Series C spherical of funding, and the truth that TransUnion has now made a direct $24 million fairness funding is indicative of how deep the partnership between the 2 firms is. Although it’s far too early to make any wild predictions, it might not be all that stunning if this funding served as a pre-cursor to a full-on acquisition given the synergies between the duo. Indeed, TransUnion isn’t any stranger to the world of M&A, having purchased some 10 firms, together with venture-backed startups, in the previous 5 years alone.
In the nearer time period, nonetheless, this partnership places TransUnion in a stronger place to compete with the likes of business heavyweight Equifax, which already presents income verification alongside its credit score reporting toolset.
“Until recently, Equifax was the only [credit reporting] bureau that had an income verification product, and they were able to maximize distribution of this product through established credit channels,” Sandler stated. “This advantage was especially apparent in mortgage, where income and employment verification has become required for conforming loans since the Dodd-Frank Act came into effect. This partnership now allows TransUnion to provide income data through Truework and compete directly in the multi-billion dollar income verification business.”
From Truework’s vantage level, in the meantime, the partnership helps it acquire considerably extra publicity amongst a number of the world’s greatest firms.
“We are already in many mortgage lenders, and the product drives a ton of value for these customers,” Sandler continued. “Now, TransUnion will be distributing the product to new verticals and use cases, from property management to credit card applications.”
…. to be continued
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