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Pylon integrates with Plaid for automated asset verification. Plaid is approved for Day 1 Certainty (D1C) and Asset and Income Modeler (AIM) for assets only. While Plaid offers income verification products, those are not yet approved for D1C/AIM, so income items still require traditional documentation.

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Current integration status

Assets: Approved

Plaid is approved for D1C and AIM for asset verification

Income: Not yet approved

Plaid income products are not yet approved for D1C/AIM, so income still requires traditional documentation
Income limitation: While Plaid offers income verification products, these are not yet approved for D1C and AIM. You will still need to task out for income documentation even if using Plaid for assets. Consider using The Work Number for income verification instead.

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Plaid reseller program

Pylon is a reseller of Plaid, which means:
  • Credentials managed by Pylon: Pylon can obtain Plaid credentials on behalf of clients
  • Billing through Pylon: Plaid usage is billed through Pylon’s main account
  • Simplified setup: Clients don’t need to manage their own Plaid account or credentials
Simplified integration: As a Plaid reseller, Pylon handles credential management and billing, making it easier for clients to integrate Plaid without managing separate accounts.

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Integration options

Pylon clients have flexibility in how they integrate Plaid: Plaid Link is Plaid’s standard web-based authentication flow:
  • Borrower clicks a button in your application
  • Plaid Link modal opens
  • Borrower selects their bank and authenticates
  • Asset report is generated and sent to Pylon
Most common: Plaid Link is the most commonly used integration method and provides a seamless borrower experience.

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Option 2: Plaid Layer

Plaid Layer is Plaid’s embedded authentication component:
  • Plaid authentication is embedded directly in your application
  • No modal popup, providing a seamless in-app experience
  • Borrower authenticates within your UI
  • Asset report is generated and sent to Pylon
Flexible choice: Pylon is agnostic to which Plaid onboarding method you choose. As long as an asset report is generated, Pylon can use it for D1C/AIM verification.

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Beta: relay token integration

Beta feature: The relay token integration is currently in beta. You’ll need to work with Pylon to implement this, as it requires coordination and may have limitations.
For API clients, there’s a beta option to pull Plaid asset reports directly and then re-issue them to Pylon via a relay token:
  1. Client pulls report: Your application uses Plaid directly to generate an asset report
  2. Relay to Pylon: You send the Plaid report to Pylon using a relay token
  3. Pylon processes: Pylon processes the report for D1C/AIM verification
Beta coordination required: This is a beta endpoint that requires working with Pylon to implement. Contact your Pylon representative if you’re interested in this approach.

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How asset verification works

1

Borrower connects account

Borrower uses Plaid Link or Plaid Layer to connect their bank account(s).
2

Asset report generated

Plaid generates an asset report with verified account balances and transaction data.
3

Report sent to Pylon

The asset report is automatically sent to Pylon (or relayed via beta endpoint).
4

D1C/AIM verification

Pylon processes the report for D1C/AIM asset verification, eliminating the need for bank statements.
5

Reduced conditions

Since assets are verified through an approved source, fewer conditions and tasks are required.

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When to use Plaid

Use Plaid for asset verification when:
  • Borrower’s bank is supported: Plaid supports most major banks and credit unions
  • D1C/AIM benefits desired: You want to reduce conditions and tasks for asset verification
  • Programmatic origination: For programmatic loan origination, automated verification is preferred
  • Better borrower experience: You want to eliminate the need for borrowers to upload bank statements

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Credit pull timing

HARD credit pull timing: Once the loan is in underwriting, Pylon programmatically pulls HARD credit much later in the funnel. This timing ensures the borrower is high intent, avoiding unnecessary trigger leads and increasing the probability of closing with you.
The timing of credit pulls is optimized:
  • Early stage: Use SOFT pulls to avoid trigger leads
  • Underwriting stage: Pylon automatically pulls HARD credit when the loan is in underwriting
  • High intent: By the time HARD credit is pulled, the borrower is committed, reducing the risk of losing the deal to competitors

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Benefits

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For borrowers

  • No document upload: Don’t need to upload bank statements
  • Real-time data: Asset data is current and accurate
  • Faster processing: Automated verification is faster than manual document review
  • Better experience: Seamless connection process vs. manual document collection

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For lenders

  • Reduced conditions: Fewer underwriting conditions related to assets
  • Fewer tasks: No need to task out for bank statements
  • Faster closes: Accelerated loan processing
  • Better accuracy: Verified data is more accurate than manual document review

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Best practices

  1. Use for assets: Use Plaid for asset verification to take advantage of D1C/AIM benefits.
  2. Combine with other verifications: Use Plaid alongside The Work Number for income verification to maximize D1C/AIM benefits.
  3. Choose integration method: Select Plaid Link or Plaid Layer based on your UI/UX preferences.
  4. Handle unsupported banks: If a borrower’s bank isn’t supported by Plaid, fall back to traditional bank statement verification.
  5. Explain the benefits: Help borrowers understand that using Plaid speeds up their loan and reduces paperwork.

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Limitations

  • Bank coverage: Plaid doesn’t cover all banks. If a bank isn’t supported, you’ll need traditional verification methods.
  • Income not approved: Plaid income products are not yet approved for D1C/AIM, so income still requires traditional documentation.
  • Beta relay token: The relay token integration is in beta and requires coordination with Pylon.

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Future integrations

Ongoing evaluation: Pylon continues to evaluate other asset verification providers beyond Plaid. Check with your Pylon representative for the latest available integrations.
Pylon is actively evaluating additional D1C and AIM approved sources for asset verification. As new integrations become available, they’ll be added to the platform.