Truework Builds Revenue Validation API for the Gig Economy

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Truework Digital Income Verifier has added to its API to assist lenders in underwriting for freelancers and contractors that make up the fast growing economy.

New Credentials technology provides consumers with 1099 income with a portal to validate and verify their data. Truework has integrated 150 payroll providers and marketplaces into the API.

According to Truework CEO Ryan Sandler, the variable and sometimes volatile nature of the gig economy has often given these borrowers trouble getting loans from banks and mortgage companies.

“It has always been difficult for 1,099 employees to get the same access to credit and other financial products as it was for W2 employees,” Sandler said in a press release. “The big reason is that most banks have not been able to access verified earnings data for 1,099 employees.”

In 2017, about 55 million people, or 34% of the U.S. workforce, were giants, according to the International Labor Organization. Statista forecasts show that the total rose to 64.8 million in 2020 and will continue to grow to about 86.5 million and 50.9% of the workforce by 2027.

“Traditional data sources are really not enough to serve the market as it stands,” Jack Lamar, Plaid’s head of go-to-market strategy, said in an interview. “Lenders try to get a predictable income so that the borrower can pay the loan. In today’s world, where someone can turn on or off an additional source of income, this predictability is quite difficult to do. “

Plaid, a fintech data technology that connects bank accounts – in partnership with Ocrolus, an automation platform for loan decision-making – in December 2019, to similarly address the challenge of verifying revenue from multiple sources.



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