AI technologies can help supplement increase in Mortgage Lending Approvals
The value of first- time buyer mortgage commitments hit a 12 year high, according to the UK Finance trends statistics report published today. 35,010 new first-time buyer mortgages were completed in August 2019, 0.7 per cent more than in the same month in 2018.
Customers increasingly expect companies to provide the most seamless digital experience with assisted intelligence solutions which offer a simpler and faster way to go through usually time-consuming processes of mortgage lending applications. On an average it takes up to 45 days to have a mortgage application approved, which can be prolonged if the loan requires additional underwriting. Generally, mortgage brokers will underwrite applications manually which is lengthy and prone to error.
To stay ahead of the competition, mortgage providers need to give their customers the best conceivable experience. By integrating AI technology with their end-to-end processes, companies respond to the customer’s demand for automation thus helping them improve efficiency and reduce costs according to Puneet Taneja, Head of Operations at Teleperformance Digital Integrated Business Services.
Puneet comments: “The mortgage application cycle is a labour intensive. AI-powered bots can be positioned as a solution to mimic low value administrative tasks, freeing mortgage brokers to focus on deepening their one on one relationship with the bank’s customers. Accompanied with human intelligence, these bots simulate what mortgage brokers do daily like appointment booking, underwriting to final approval of the offer.”
“Rather than having to wait for days to find out if an applicant is eligible for a mortgage, automating the required checks takes away the bother from mortgage brokers so they are able to deliver the offer to the customer in 30 minutes.”
“Digitising the home-buying process with intelligent reporting reduces processing times by as much as 40 per cent from 11 days to 48 hours, as well as cutting costs by 50 per cent. Utilising assisted intelligence solutions to assess applicant data has been estimated to reduce 80 per cent of business-critical errors, resulting in enhanced operations and a significantly improved customer experience.”
“AI automation will help banks to deliver a viable digital experience from various quality lending pools that were once complicated to process. Digital solutions address numerous industry challenges and technology transformation will personalize customer experience, increase innovation within products offerings, increase acquiescence and lower origination costs. Lending institutions and mortgage lenders must adopt digital solutions to remain relevant in today’s transformational markets. Moving away from the traditional mortgage processing model to a digitally based solution will require dedicated organizational commitment”.
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