Why Payroll Data Will Power the Next Fintech Wave

Every fintech wave has a defining moment—a catalyst that changes how financial products are built, delivered, and experienced. Open Banking opened doors to transaction data. Embedded finance blurred the lines between tech and banking. Now, in 2025, the next wave is emerging, powered by a source that’s been hiding in plain sight: payroll data.

At Teal, we believe payroll data isn’t just another data source—it’s the foundation for the next generation of credit products, lending decisions, and financial inclusion.

A New Foundation: Real-Time Income Verification

Payroll data is the single most reliable, direct, and dynamic record of a person’s financial health. Unlike bank statements or credit bureau reports, payroll reflects verified income at the source. This matters because:

• Accuracy matters: Payroll data is less prone to fraud and error than payslips or self-reported income.

• Timeliness matters: Real-time data lets lenders know what’s happening now, not months ago.

• Inclusivity matters: Payroll captures all types of earners—from salaried employees to gig workers to multi-income households.

This isn’t just about better underwriting; it’s about building trust and confidence in a borrower’s ability to repay.

Beyond Static Scores: Toward Dynamic Affordability

Traditional credit scoring has failed to keep pace with how people work and earn today. The rise of flexible employment, side hustles, and remote work means more people fall outside legacy scoring models. That’s where payroll data changes the game:

• Dynamic assessments: Lenders can track income trends over time, not just at the point of application.

• Personalized affordability: Real-time data enables lenders to tailor offers based on actual, verified income.

• Responsible lending: With Consumer Duty now in full swing, lenders need to prove they’re making fair and transparent decisions—payroll data helps meet that bar.

Fueling New Products and Experiences

The opportunities don’t stop at credit decisions. Real-time payroll data unlocks a wave of product innovation:

• Instant loan approvals: No more waiting for payslip uploads or bank statements—lenders can verify income instantly.

• Dynamic credit lines: Credit lines that adjust based on real-time income trends.

• Smarter repayments: Automated deductions or dynamic repayment plans based on payroll cycles.

This is the infrastructure that modern fintech has been waiting for.

Payroll as a Platform: The Data Rails of the Future

At Teal, we see payroll data as the new data rails for financial services—not just a product feature, but an entire ecosystem. By integrating directly with payroll providers, we enable:

• Seamless lender-borrower experiences

• Compliance-ready data sharing with full user consent

• Modular APIs that fit any lender’s existing workflow

This isn’t about replacing what lenders already do—it’s about supercharging it with a new layer of trust, transparency, and innovation.

The next wave of fintech isn’t just about faster apps or shinier interfaces. It’s about unlocking better, fairer, and more dynamic credit decisions—powered by real-time, verified data from the source that matters most: payroll.

At Teal, we’re building the infrastructure to make this wave possible.

Ready to see how Teal can power your next fintech product? Visit goteal.co to learn more.