5 ways mortgage lenders can take advantage of digital loans for good
Mortgage customers now expect proactive, fast loans that are as easy as buying their favorite book online or shopping for groceries on Amazon.
The mortgage industry’s laser focus on digital continues, however, it is essential to understand the forces that are accelerating this trend.
- Submission of the application file and supporting documents in digital format
With constantly evolving customer demandsGone are the days when borrowers had to fill out long application forms and piles of documents. Applying for a digital mortgage doesn’t require a lot of work on the part of clients; lenders can now get most of the information they need through third-party data providers and aggregators.
Documents are gathered in different formats (pdf, images, etc.) from multiple sources (portal, third-party providers, internal databases, etc.). This helps lenders address the challenges introduced by fragmented and unassembled cases to gain complete control, compliance verification and a single source of truth, abolish manual data entry with no added value, add intelligence and dramatically improve the user experience.
- Automated data entry, review and validation of application and documents
Once we have juxtaposed enough data using OCR and computer vision technology, documents are divided, identified and classified into defined file structures and categories, using text mining and machine learning algorithms.
Appropriate data is extracted from active documents using natural language processing and contextual learning in a format for easy review and modification.
This helps lenders to efficiently classify documents and prescribe the most beneficial loan option for the borrower’s demands, means and choices.
- Decision-making due diligence
Data validation and control are carried out on the documents collected, by cross-checking all the data, ie documents and external sources. Several checks are performed to verify completeness, accuracy, and consistency to generate a report at the case, document, and field level using business rules and machine learning models.
This automated mechanism enhances the borrower’s experience and helps them make informed decisions with certainty. Unlike in the past, these automated approvals are based on fully verified financial data, accuracy and customer logic. There is less chance of going wrong, and less surprise and stress for everyone involved.
- Processing of decisions and offers
The validation report is presented to the human for final approval and necessary actions on the approval of the data that is fed into downstream applications.
With real-time case tracking, critical alerts and notifications, lenders can better respond to a digital consumer, using data, advanced analytics, and artificial intelligence to eliminate steps and improve the process.
AI-powered chatbots could suggest personalized loan products to people seeking financial advice, assisting clients with loan requests, and supporting service requests.
- Closing and financing
The process ends with electronic closure, which eliminates the need for borrowers to meet with a closing agent in person, allows them to review closing documents at their own pace and discuss their concerns. This reduces the chance of delays caused by a last minute problem in the documentation.
The prospect of digital lending will reduce the friction associated with the financing process, eliminating paper and shifting all tracks of the customer journey to online and mobile capability.
Additionally, digital lenders also use AI systems to observe borrower profiles and analyze their transaction history.
Perpetual innovation is vital. Implementing a standard digital experience isn’t enough – processes need to be agile and instantly aligned with emerging customer expectations.
More and more customers today expect their financial service providers to deliver personalized products and services that are precisely created to meet their needs, decisions and goals.
The loans of tomorrow will involve the full use of a wide range of technologies, including artificial intelligence, analytics, chatbots, Internet of Things, speech recognition, machine learning, computer vision, virtual reality, augmented reality, robotic process automation and many more. .
Innovative lenders must anticipate customer needs in advance and deliver a cutting-edge customer experience.
Many lenders understand the importance of incorporating digital mortgage capabilities into their businesses. However, most of these lenders also seem to be struggling for several reasons.
How long will it take the rest of the industry to catch up?
This question is worth finding an answer!
The answer lies in decoding the rapid advances that are taking place in the mortgage industries, every day, every second as we speak.
Digilytics AI is deeply rooted in harnessing disruptive technologies to drive profitable business growth. At Digilytics AI, we are change makers who love to challenge the status quo and disrupt the industry with our authenticity and innovation. We are free thinkers, optimists, willful, analytical and loyal to our clients and colleagues.
Founded by Arindom Basu, Digilytics AI is a leading provider of easy-to-use AI solutions, headquartered in London, UK, with a presence in the US and India.