Loan processing is often a complicated and time-consuming process. It works with multiple partners and business providers. Before its completion, on an average, it will take 20-30 days to close a loan. But today’s customer expects fast, seamless and hassle-free access to loan services at a time, place and channel of their choice. They seek loan products that suit their specific needs, products that are available on their preferred channel and are offered to them with super-fast approvals. With a volatile market and changing lender landscape, the opportunity to create value depends on the quality of the customer experience.
Automation is the key
The need for process automation is significant to increase productivity, reduce operational costs, minimize human errors, and provide better user / consumer experiences. Lenders have many opportunities to automate the mortgage origination process and transform the traditional method of processing through digital solutions.
Automation fulfils the customers’ need for convenience, and at the same time offers lending firms many new opportunities for growth, both top line and bottom line.
Lenders can automate many of their traditional methods to reduce the loan processing time. Automation can be implemented right from the application stage to data collection and verification.
- Automate data capture and data collection events
- Enable digital verification processes throughout the loan cycle
- Automate processing and underwriting events completely
- Automate the document generation process (e.g. initial disclosure, closing disclosures, etc.) and enable digital delivery of the same
- Enable real-time integration of all associated parties with loan origination system (LOS) for exchanging data between applications
- Introduce e-closing, recording and vaulting options. Provide online collaboration with settlement agents, counties, notaries, etc.
- Enable automated workflow models in the LOS to complete events automatically
By enabling the above processes lenders can save tremendous amount of time.
AI, the next wave of opportunity for lenders
Moreover, an automated loan processing system can lighten the load for lenders who struggle with:
- Ever-changing regulations
- Misrepresenting multiple processes involved while using different business information systems
- Maintaining compliance to reduce risk exposure
- Ensuring accountability within the processes and sub-processes
AI offers tremendous opportunities to revolutionize operations in the lending sector. Machine learning can process tetrabytes of data in seconds, which humans could not process in a lifetime. This sheer power of modern computing will lead to faster loan origination, fewer compliance problems, and more inclusive lending overall.
Data driven AI applications will speed up online lending. Online brokers, lenders and credit bureaus can use algorithms to assess eligibility for credit. On the flip side, AI can also match business owners with the right lender. AI analyses and authenticates users’ transactional data, and income verification and spend analysis helps highlight risk factors used for a richer credit scoring experience. This will reduce the risk of default and increase borrowers’ financial profiling. It can also help automate parts—and maybe all—of the process.
Businesses are using AI now more than ever before. AI is being scaled across industries at an enterprise level. By collecting and learning from data, cognitive systems can spot trends and provide insights to help your teams improve workflows, response times and customer experiences. AI Consulting Services from Insight Consultants help you leverage AI to drive smart reinvention of your workflows and technology. We help you implement a data-first strategy, take advantage of your data, augmenting with third-party sources, and integrate with other advanced technologies, such as IoT and Intelligent Automation, to achieve tangible business insights faster.
We are here to guide through your enterprise AI transformation journey