The global mortgage industry is a data-intensive sector with hundreds of documents flowing in on a daily basis. These high volumes of documents are manually processed and verified, which results in extremely slow processing speed that delays responses to customers. The fragmented nature of the mortgage lending process entails various databases, systems, tools and reports also hinders efficiency. Moreover, manual processing of such vast amount of data can be inefficient, mind-numbing and error-prone.
This makes the mortgage industry one of the best candidates for an Intelligent Process Automation (IPA) that harnesses both Artificial Intelligence (AI) and Robotic Process Automation (RPA). AI can process unstructured content including various types of documents while RPA can mimic human actions and automate rule-based processes from end-to-end.
Even a 20% increase in throughput due to Intelligent Automation can mean tens of millions of dollars in more loans. Research indicates that more than 80% of financial enterprises use AI and over 70% of senior executives view this technology as crucial in the near future for optimizing operations.
Leveraging an Intelligent Automation (IA) solution improves mortgage processing in various aspects:
Intelligent Document Processing and Management
Mortgage application and processing can cause piling up of several documents from different channels and in various formats. This results in difficulty in extracting relevant data from these documents and management it which creates a bottleneck in processing right from the very beginning. With IPA solutions, it is easy to accelerate document and data processing as it can easily handle any kind of unstructured content – data from third-party websites, scanned PDFs, photographic proofs, text from emails and so on.
This enables streamlined and highly accelerated document processing which helps mortgage professionals serve clients faster. This cloud-based technology is conveniently accessible and can easily scale to handle a surge in volume. No more capacity challenges, confusion over documents or manual errors.
Efficient Mortgage Processing and Reconciliation
Implementation of an IPA solution, empowered by RPA, helps in processing mounts of documents that can be extremely repetitive and data-intensive. This eliminates any occurrence of human errors and inconsistencies. Moreover, with the help of AIs human-like intelligence you can navigate through diverse forms of documents. AI incorporates Natural Language Processing (NLP), Optical Character Recognition (OCR) and Machine Learning (ML) which enables Intelligent Document Processing (IDP). Typically closing a loan can take up to 2 months but with the aid of AI this time period can be significantly reduced to just 2-3 days.
Intelligent Document Processing thanks to AI’s capabilities automates document verification and extracts relevant data. This ability allows for reconciliation of documents and its quality assurance and control, even from third party sites. Furthermore, the solution is capable of flagging incorrect/unverified data, as well as, notifying your mortgage inspector regarding the same. With this disruptive technology, your company can slash mortgage process cycle times by 85% for more efficient mortgage processing, underwriting, and processing of audit trails, which decreases the cost of operations in the long-term.
Greater Customer Satisfaction
According to a survey, banks are losing business to non-depository loan originators, which have doubled their market share from 25% to 50% over the last 10 years. This issue is primarily rooted in the time-consuming loan processing cycle and slow customer service.
IPA solutions enable automation of responses to surrender customer queries and suggestions via intelligent email responses or AI-powered chat bots. These digital works function around the clock, tending to customer issues in real-time. It generates swift responses to customers in a user-friendly, conversational format and can also forward important documents to the concerned employees. Delays are eliminated as response time can be reduced by 90% with much higher accuracy in resolving customer queries.
Smart chat bots can also act as financial advisors to your employees and save them time in processing loans. This results in a significant improvement in customer service and greater customer satisfaction, while also being cost-effective.
Increased Security and Fraud Prevention
Online portals for financial enterprises are highly convenient and efficient, but there is also a high possibility of fraud. AI solves this issue with ease. Once your IPA solution is trained properly it can interpret and extract insights on potentially illegal activities on your portal. It can also flag these activities and alert the relevant person about them for further action. The solution provides useful insights that help you develop robust security systems for your company, keeping your highly valuable data safe and secure.
Research indicates that about 58% of lenders are willing to adopt AI solutions in the next 2-3 years. Implementation of an Intelligent Document Processing solution could result in a 95% increase in reduction of time taken to handle a trade transaction along with a 90% increase in accuracy rates. Leveraging an IPA solution for mortgage processing can transform your company enabling accelerated mortgage processing for a strong competitive edge.
If you are interested in exploring other aspects of IPA that can benefit your enterprise, you can read about Transforming Banking and Financial Services with Artificial Intelligence (AI) & Intelligent Process Automation (IPA). Alternatively you can also read Rise of Intelligent Document Processing for Auto Insurance Claims.
If you’re interested in exploring Intelligent Automation to enhance your firm’s mortgage processing, Rapid Acceleration Partners would be glad to help. Our next-gen, AI-powered content intelligence platform RAPFlow enables full lifecycle AI orchestration on a single platform. When used in tandem with our RPA tool RAPBot, it provides end-to-end workflow automation capabilities that can be deployed in just weeks. You can even build your own use case and the platform can easily integrate with your existing systems. Book a demo to get a more detailed understanding of how our products can transform your business.