Technology has played a dominant role in UK’s mortgage loan origination. It has automated most of the processes and has made the entire system more efficient. But this does not mean technology has eliminated the necessity of human intervention in the process.
Mortgages play an essential role in the UK lending market. Whether the borrower wants to purchase a house or start a business, mortgages provide the necessary financial assistance. In 2020, even with the pandemic and lockdowns, the total number of mortgages sold in the UK was over one million.
While technology has made mortgage origination more streamlined for lenders and borrowers, the human touch is still required. Over the next few minutes, you will learn how technology can change mortgage origination so that the focus shifts to human relationships.
Let’s break this down into two segments.
There are four main steps in the mortgage loan origination process.
Each step consists of several detailed processes. In the traditional mortgage origination process,
The time to complete all these steps and fund the money to the borrower takes around 35 days. This lengthy period is due to manual operations, which also causes errors during the process. These errors then lead to a few back-and-forth between the lender and borrower.
On the other hand, in the modern mortgage origination system that involves automation and digitisation:
Automation through technology is just a set of tools that assists you in different lending stages. Along with automation, human relationship and presence are also essential for successful mortgage lending.
As seen above, in the modern mortgage origination system, the lenders or underwriters always make the final decisions. Lenders can also help borrowers choose the right mortgage product based on their financial history.
Furthermore, customer service and support are vital for any business. Be it in eCommerce, healthcare, or mortgage origination, customer support is what helps a business grow and develop a reputation.
So, when modern-day technologies speed up different processes for you, you get more time to create and develop a professional relationship with the borrower. This way, you can better understand the borrower’s situation.
For instance, the data received from bank statements and payslips are not always complete or data rich. In such scenarios, a human presence is beneficial as lenders can try and understand the borrower’s financial situation.
Moreover, borrowers always feel more comfortable asking financial questions to a real person rather than a computerized system.
Did you know that 70% of consumers still prefer human interaction and assistance to a digital representative or chatbot
This statistic holds for all sectors, including banking and finance.
Hence, only when you embrace and work with technology, you create a successful mortgage origination system
The different mortgage technologies that humans use in various stages of the mortgage origination process are,
Out of all these technologies and techniques, Artificial Intelligence (AI) and Machine Learning (ML) are the most used ones.
These disruptive technologies improvise loan origination, allowing human relationships to take the centre stage.
Digilytics AI is a fintech company that leverages disruptive technology to enhance the mortgage origination experience. With the help of RevEL, our loan origination software, we aim at revolutionizing mortgage origination
Today,according to Forbes, Digilytics AI is among the “15 of the most innovative AI companies driving exponential shifts in their respective sectors.”
Artificial Intelligence plays an essential role in transforming the traditional mortgage origination process into an automated one. AI finds a way to contribute and play a part in each stage of the origination process.
When the applicant sends their application and supporting documents, AI can help in processing them. Apart from AI, ML, NLP, and computer vision are used on OCR results to extract information from the documents with high accuracy levels. This process is known as One-shot Learning AI technology at Digilytics.
Through intelligent data processing, AI can extract data from the documents and automatically add the information into the loan origination software. It can also classify the documents based on income, expense, etc.
RevEL also provides glass-pipe tracking that shows real-time analytics on key metrics. Through interactive dashboards in the loan origination software, lenders can also obtain actionable insights.
Once the documents are processed, AI can algorithmically allocate underwriters to the loan case. It can then generate predictive models to help the underwriters make decisions on loan approvals.
Apart from higher gross lending and productivity and lower operation costs, Digilytics AI provides actionable insights generated using Artificial Intelligence. You can use these insights to get a better understanding of the borrower.
As AI and automation also accelerate the entire origination process, you get sufficient time to put these insights into action instead of wasting your time analysing documents and verifying information.
Disruptive technologies like AI and ML are productive tools that you can use to,
Digilytics AI believes in the same ideologies and makes the mortgage journey easier and quicker for borrowers and lenders.
Request a demo today!
While you are here, other top articles you might be interested inDeliver First Time Right Applications with Documents & Online Data Role of AI in SME loan origination Verifying Information in Mortgage Lending Process: Supporting Documents vs. Data Sources? All about One-shot Learning AI technology and its impact on the UK Mortgage Market A change in technology is coming to the UK Mortgage 3C checks: The Digilytics Art of validating mortgage documents The Future of Computer Vision, Machine Learning and Artificial Intelligence in Mortgage Industry How industry 4.0 principles can work in the favor of mortgage origination? Top 5 Real Challenges in Building Predictive Models in Mortgages 5 Ways in which Mortgage Lenders can Leverage Digital Lending for Good