Payscore, which is automating income verification for property managers and consumer lenders, has secured an undisclosed amount of funding.
The investment was led by ff Venture Capital of New York, with funds also coming from SeaChange Fund, Hamilton Ventures and Seattle’s Alliance of Angels.
The company’s founders, Mark Fiebig and Stephen Arifin, noted that the industry’s historic reliance on pay stubs to verify income caused problems. The inaccurate and unfair income assessments are frequently delayed and leave operators exposed to fraud and liability risk.
To combat this, Fiebig and Arifin built Payscore. Arifin said, “Eliminating waste from an old-school process ignites the engineering team every day. We’re delivering efficiencies and accuracy like no one else in the industry.” He added that the platform has stripped away at least an hour in the time spent processing each candidate and accelerated the process while minimising an operators’ liability exposure risk due to fraud.
The company analyses consumer-permissioned data to ensure every applicant is evaluated fairly and objectively, even if income is cash-based, such as tips, or fluctuates due to commissions.
Payscore claims to remove a root source of fraud by integrating directly with financial institutions, reporting 100% bank-verified data and removing the need to collect and evaluate financial documents.
Hamilton Ventures managing director Prashant Kothari said, “Rental demand exceeded supply for the last 10 years, consistently 35 percent of us are renters, and the market for income verification is large, growing, and self-renewing.
“The emerging dynamics of the modern workforce, inflation, and interest rate pressures create demand for property managers to reduce costs by automating processes, broadly increasing the value of Payscore’s solution.”
Earlier in the week, Texan FinTech company StellarFi secured $15m in its latest funding round. The company helps users build credit scores by paying bills.
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