In mortgage domain Efficiency is synonymous with automation: How mortgage services can benefit from AI and automation

AI and automation are the new helping hand in the mortgage financial servicing domain. servicing sector of our industry, – is a predominantly paper-intensive with largely manual labor-intensive is experiencing a tectonic shift in results, cost savings, and efficiency when it adapts  the digital processes driven by AI and Automation. 

With new study conducted by meridianlink shows benefits of up to 40% cost savings and 3 times more return in terms of revenue. The stark difference between automation and the archaic manual labor and paper-intensive way of dealing with it is evident. 

Unfortunately the majority of the organizations are slow and somewhat reluctant to be on board of this new wave of technology. Studies have shown that more than 50% of them were not using any automation tools whatsoever. And only close to 30% were taking the some degree of advantage of automation and the magic of AI. 

However, the rest can be traced back to be using archaic ways of dealing with mortgage payments, credit analysis, and maintenance. 

Serious young female manager in formal outfit sitting and signing documents while business partner working on laptop

AI and automation give the privilege of working smarter and minimizing the margins of errors led by manual calculation and reporting and analyzing. There are close to zero errors when the AI takes up the mantle. The entire process runs at such a significant pace that it can be hard to replicate the same mode of operation without AI or automation tools. 

For example, simple tasks of customer letter can be automated to increase the efficiency and enhance customer experience.

A huge portion of Mortgage and other financial servicing industries suffered due to human errors in calculations, in keeping records, and maintaining them. While taking a mortgage for their homes, customers often miscalculate or forget to anticipate the next mortgage payment which is due and in turn, the payment remains overdue. 

People Discuss About Graphs and Rates

The mortgage servicing industry is trying its best to implement automation by using various tools and AI that will help in the loan origination, analysis process, and credit assessment process. Adding the option of the real-time dashboard with all the facts and figures that give the customers transparency and regular updates is also a key feature in the entire process. 

It’s not an exaggeration to state that AI is the future of banking as it provides the option of advanced data analytics that counter fraudulent transactions, which increases compliance in the long run. This immensely helps banks to identify counterfeits, fraud, and money laundering patterns that can ultimately guide or warn the customer based on their usage.  

This industry is diligently trying different ways of improving tracking, analyzing, efficiency, speed, and productivity that in turn benefits their organization and also gives the customers a great overall experience.

Laptop with Graph on Screen

Taking the use of Artificial Intelligence (AI), Machine Learning (ML), and Natural Language Processing (NLP), all the data associated with each customer goes through various channels with the inherent motive of giving the customer the best possible experience overall. 

This industry benefits from the funding of both commercial and enterprise clients, while they ensure their profit by mitigating as much risk as possible. According to the present data, assessing the creditworthiness of any client is a tough nut to crack and it is cumbersome most of the time. 

It is the integral and the very first step in the process to collect and examine the financial and other data from the customer. This cumbersome task used to be a labor-intensive and paper-dependent task, which used to be stressful and time-consuming.

It used to be highly dependent on documents, forms, and papers riddled with numbers. The problem arises when the numbers have to be put into the system manually one by one. One human error here and there can wreak havoc in the entire process. Even a misplaced zero can incur losses worth millions. The menace of inaccurate data has been a threat in the mortgage financial servicing industry. 

Woman in Purple Shirt Sitting by the Table Using Macbook

Hence, here comes the use of automation tools where it can streamline the entire process at the push of a button, leaving no space for errors and also saving time. This not only improves the quality of the entire process while saving money but also gives more customer satisfaction and transparency to both the lender and the borrower.  


Take our helping hand and join us and book a consulting session today with no prior commitments and also enjoy a free customizable demo from our end. 

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