7 Tech Trends Revolutionizing The Credit Reporting Space in 2022


7 Tech Trends Revolutionizing The Credit Reporting Space in 2022

February 28, 2022
Certified Credit

Did you know that 90% of the data ever created in human history was generated in the last few years?[i] Data and technology have transformed nearly every area of our modern life. The credit reporting industry is no exception.

From advanced credit scoring algorithms to cutting-edge fintech applications, the credit sphere has experienced many notable upgrades in recent years. As we investigate the future, mortgage lenders may wonder what’s next. The short answer? The credit reporting industry is only becoming more high-tech and data-driven.

Below, we’ll review seven tech trends that are revolutionizing the credit reporting industry this year.

#1 Artificial Intelligence (AI)

AI and machine learning give computer programs the ability to continuously improve with the input of new data. In turn, these programs can hone their accuracy and predictive capabilities over time.

In the credit reporting space, AI has the potential to:

    • Fortify fraud detection and prevention efforts – Fraud is a continuous concern for mortgage lenders. You never know when a desperate applicant may fudge or forge information to secure a mortgage they don’t actually qualify for.Fortunately, it’s estimated that up to 80% of mortgage fraud could be avoided with early detection efforts.[ii] AI can take care of this early detection work for you. With incredible precision, AI can pinpoint fraudulent patterns in mortgage applications.Just ask Paypal—machine learning models enhanced the company’s fraud detection efforts by 50%.[iii]
    • Enhance credit risk management – Assessing an applicant’s risk is a key component of the mortgage origination process. Many factors impact someone’s ability to repay a loan on time. Machine learning models are incredibly adept at analyzing these factors and uncovering patterns that indicate credit risk.
    • Improve accuracy – Machine learning is considerably more accurate and consistent than manual work ever could be. In turn, lenders can be more confident in their decisions when AI is on their side.

Since AI offers such powerful advantages, its adoption is quickly shifting from a mere convenience to an absolute necessity. Many of the major credit bureaus have already embraced AI with open arms.[iv]

#2 Enhanced Identity Protection

When handling private financial information, technology has to strike a careful balance between enhancing convenience and adhering to strict security standards.

Fortunately, many emerging fintech services have put a major emphasis on authenticating consumers’ identities with new technologies. Blockchain and biometrics are two identity verification tools rising in prominence:

    • Blockchain – Popularized by Bitcoin, blockchain technology has many potential uses, including protection against identity theft. By storing all data on a public ledger, blockchain can enhance transparency and confirm the authenticity of transactions.
    • Biometrics – From fingerprints to facial recognition, biometric identification is a secure way to verify consumers’ identities in the credit space and beyond.

Even with such innovative tools, fraudsters have a keen knack for keeping up with technological innovations. To stay one step ahead of them, it’s important to be aware of the new areas fraudsters may turn their attention to next, such as:

    • Ransomware attacks
    • Identity theft with Buy Now, Pay Later services
    • Cryptocurrency scams

#3 Convenient Automation

Automation is a powerful tool that’s sweeping the credit reporting space. Automation has the power to enhance the efficiency, cost-effectiveness, and accuracy of various workflows within your loan origination process.

Here at Certified Credit, we’ve developed a class of workflow automation solutions made just for mortgage lenders. These two solutions are:

    • Cascade Alerts – Securing repeat business from past borrowers can be a challenge in today’s mortgage industry. Up to 80% of borrowers switch lenders when they refinance or move homes.[v] Cascade Alerts was designed to combat this low customer retention epidemic. Cascade Alerts is an automated credit monitoring tool that tells you when your past and current prospective borrower’s credit reports receive mortgage-related inquiries in as little as 24 hours. Beyond identifying when borrowers are in the market, Cascade Alerts informs you when your potential borrower may be shopping their loan. With these swift alerts, you can reach out to potential clients right away and secure their business before the competition.
    • Cascade VOE – Every mortgage lender knows how tedious the verification of income and employment (VOE) process can be. When done manually, it’s cumbersome and time-consuming. It can also cost a lot of money. Luckily, Cascade VOE can change that once and for all.

Cascade VOE is powered by a rules-based engine and multi-level cascade. It automates the VOE process from start to finish. All you have to do is set your verification preferences and let Cascade VOE take care of the rest. You can customize the number of vendors you use and the order you want to use them.

Cascade VOE’s automated process has been shown to produce a higher hit rate with more affordable vendors than manual VOE. Best of all, you only ever have to pay when you actually receive a hit.

Automated solutions, like Cascade Alerts and Cascade VOE, solve many of the workflow inefficiencies seen in the mortgage lending space. In turn, they can save you money, free up your time, and optimize your productivity.


#4 Seamless Integration

Nowadays, lenders have several powerful LOS platforms to choose from. These platforms facilitate efficient loan originations and closings all in one place. They’re equipped with the necessary compliance safeguards to ensure optimal loan quality.

Thanks to advancements in technology, LOS platforms can now integrate with other powerful lender  resources, such as:

    • Credit Reporting Systems
    • Flood Zone Determination Tools
    • Automated VOE
    • Point of sale (POS) software
    • Other third-party vendors

This convenient integration allows loan officers to leverage a wide range of tech tools without disrupting their existing workflows. For example, Cascade Alerts and Cascade VOE can seamlessly integrate with your current LOS. Many of our customers benefit from an intuitive, easily configured Cascade and Encompass integration.

#5 Faster Financing For an Enhanced Customer Experience

As a mortgage lender, satisfying your customers is a key step in maintaining their business and earning valuable referrals. Credit consumers’ expectations have risen notably in recent years. A few years ago, borrowers were willing to wait anywhere from days to weeks to receive their loan decisions. These days, borrowers desire fast, real-time decisions.

Fortunately, improvements in technology have enabled a much swifter loan origination process. For instance, automated VOE can speed up the turnaround time for lenders and consumers alike.

Brand new forms of fast financing have also emerged, thanks to new technologies. One example is the increasingly popular Buy Now Pay Later (BNPL) financing*. BNPL allows consumers to make purchases and pay for them later on, often without incurring any interest. BNPL functions like a point of sale installment loan. Over 55% of American consumers have used a BNPL service.[vi] This new form of financing is only estimated to become more popular in the coming years.

*While these loans are less regulated than many others, by the end of 2022, it is expected that these loans will begin impacting borrower’s credit score. When working with a borrower that utilizes these loan services, ensure they are aware of best practices for managing debts and the terms of their BNPL agreement.

#6 Consumer-Permissioned Data

Historically, having a thin credit file made it difficult for a large pool of consumers to obtain affordable financing. Thanks to the rise of consumer-permissioned data, this is quickly changing.

By sharing financial data with credit scoring companies, previously “credit invisible” consumers can obtain credit they wouldn’t have been able to otherwise. This alternative credit data can include:

    • Bank account information
    • Rent and utility payments
    • Income and employment information
    • Asset and property ownership details
    • Full file public records
    • Alternative lending service inquiries
    • Other consumer-permissioned data

As more consumers showcase their creditworthiness in alternative ways, lenders can tap into a larger pool of potential customers and expand their business prospects accordingly.

#7 Customizable Credit Reports

Even with the rise of alternative credit data, traditional credit reports remain a cornerstone of the underwriting process. Lenders rely heavily on credit reports to assess applicants’ creditworthiness and make smart lending decisions.

Some lenders focus on specific credit data to guide their decisions efficiently. By customizing credit reports, lenders can highlight the information they deem most relevant and personalize their credit report formats accordingly, streamlining their credit report evaluation process as a result.

Here at Certified Credit, we offer several customizable credit reports, including:

    • Pre-Qualification Soft Pull Reports
    • Tri-Merge Credit Reports
    • Smart Select Reports
    • Refresh Credit Reports
    • Mortgage Comparison Reports
    • Business Credit Reports

Talk Data to Me: Join Certified Credit at the ICE Experience 2022

As you can see, the credit reporting industry is experiencing incredible innovations. If you want to stay on the cutting edge of each and every one of them, you can attend the ICE Experience 2022. This mortgage conference is taking place March 14-16, 2022 at the Wynn Resort in Las Vegas.

During this exciting event, you can learn about the latest mortgage industry trends in detail. In addition to attending expert-led sessions, you can also network with:

  • Industry leaders
  • Technology experts
  • Mortgage professionals
  • Trusted partners

As a proud Encompass partner and ICE Experience 2022 sponsor, Certified Credit will be in Kiosk #9 during this event. If you decide to attend, make sure to stop by! We’re excited to talk data with you and highlight some of the innovative tech solutions our team has to offer. You can check out a demo of our latest automation solution, Cascade VOE. You can also win cool swag, play games, and win fun prizes!

Secure your spot at ICE Experience 2022 today!



[i] Forbes. How Much Data Do We Create Every Day? The Mind-Blowing Stats Everyone Should Read.


[ii] Van Education Center. Recognizing the signs of Mortgage Fraud.


[iii] Datanami. PayPal Feeds the DL Beast with Huge Vault of Fraud Data.


[iv] World Bank. Leveraging big data and machine learning in credit reporting.


[v] PR Newswire. Black Knight: Servicers Retained Just 18% of Customers Post-Refinance in Q1 2019, a 13-Year Low; Slight Rate Increase Reduces Refinanceable Population by 1 Million


[vi] The Ascent. Study: Buy Now, Pay Later Services Continue Explosive Growth.