Truework and TransUnion Announce Strategic Partnership and $24 Million Equity Funding
A Powerful Combination for Lenders and Customers
Truework, a leading income and employment verification platform used by banks, lenders, property managers, and employers, has announced a strategic partnership with consumer credit reporting giant TransUnion. This significant collaboration comes with a substantial investment of $24 million in equity funding from Transunion, solidifying the company’s commitment to the joint venture.
A Brief Overview of Truework
Founded in 2017, San Francisco-based Truework integrates with third-party services such as payroll providers to enable mortgage providers and similar lenders to verify users and approve loans directly within their own applications. This innovative platform also allows landlords or would-be employers to conduct background checks seamlessly.
The Partnership’s Significance
With its latest partnership, TransUnion will effectively sell Truework’s income verification product alongside its main credit product. As a result, a TransUnion customer such as a bank can access both credit and income data through a single API. This integration is expected to provide lenders and customers with unparalleled convenience and efficiency.
Co-Founder and CEO Ryan Sandler Weighs In
According to Truework co-founder and CEO Ryan Sandler, the combination of credit and income data accessible via the same API and vendor is a significant advantage for both lenders and customers. ‘Having both data sets accessible via the same API and vendor is powerful for the lender and customer,’ Sandler emphasized. ‘Especially for the thousands of customers who already use TransUnion for credit data.’
A Strategic Move in the M&A Landscape
The announcement comes approximately 10 months after Truework closed a $50 million Series C round of funding. The fact that TransUnion has invested $24 million directly into Truework’s equity suggests a deep partnership between the two companies. Some analysts speculate that this investment may be an indication of potential acquisition, given the synergies between the duo.
TransUnion’s History with M&A
Indeed, TransUnion is no stranger to mergers and acquisitions (M&A), having acquired over 10 companies in the past five years alone. This includes several venture-backed startups. Although it’s too early to predict any potential outcomes, this partnership positions TransUnion to compete more effectively in the industry.
Competing with Industry Heavyweight Equifax
The partnership puts TransUnion in a stronger position to challenge the likes of industry heavyweight Equifax, which already offers income verification alongside its credit reporting toolset. Until recently, Equifax had an advantage due to its established distribution channels and existing relationships with mortgage lenders. However, Truework’s integration with TransUnion now levels the playing field.
CEO Sandler on the Competitive Landscape
According to Ryan Sandler, ‘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.’ He further notes, ‘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.’
A Boost for Truework
The partnership with TransUnion significantly enhances Truework’s exposure among some of the world’s largest companies. As Sandler explained, ‘We are already in many mortgage lenders, and the product drives a ton of value for these customers.’ With this new collaboration, TransUnion will distribute the product to new verticals and use cases, including property management and credit card applications.
A Bright Future Ahead
As Truework continues to grow and innovate, its partnership with TransUnion is poised to drive significant growth in the income verification market. This strategic alliance underscores the importance of seamless data integration for lenders and customers alike, ultimately enhancing the overall user experience.
About the Author
Paul Sawers is a senior writer based in London, covering UK and European startups, as well as various industry trends and developments. With a strong background in technology journalism, Paul provides insightful analysis on emerging companies and technologies that are shaping the future of business and innovation.
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