The Ask from a New Age Lender

Mortgage Lending in the UK Market

Given record inflation, rising interest rates, cost of living pressure and impending recession, most lenders are feeling severe cost pressures than ever before. Applying for and finally signing a mortgage is one of the most complicated processes most homeowners will ever go through. It’s not exactly a cakewalk for the lenders, either.

One of the many positive changes that have been embraced by the lenders over the years is digitization, where piles of paperwork have conventionally filled desks and cabinets. Digitization empowers them to sign documents electronically and store digital files rather than paperwork, all without leaving the comfort and safety of home. Optical Character Recognition (OCR) and its ability to convert paper-based documents into electronic ones is no stranger but many lenders today are unaware of how AI technologies could digitize unstructured data into indexed data, saving them significant overheads.

Successfully processing each application involves analysing a lot of documents and data points to assess financial risk and comprehend borrower’s repaying ability. Borrower profile is massively changing and with an inevitable onset of new age tech savvy borrowers, near instantaneous approvals for their applications will soon become a reality. But according to recent research, it usually takes legacy lenders an average of 53 days to manually process a mortgage, from application submission to loan disbursement.

Lenders today to can leverage new -age technologies to massively cut down cycle times. Leading the way is AI enriched optical character recognition (OCR), which can not only read any type of document but also extract the information into usable electronic data, quicker and with higher accuracy than humans. Top it with a pre-defined rule engine to validate the extracted data against lending principles and rules, and you have the perfect recipe to deliver best in class borrower experience with straight through processing.

Digilytics’ RevEL platform has perfected that recipe to work in conjunction with several other automation solutions, such as robotic process automation (RPA) and transactional systems such as Loan origination system (LOS) & Point of sales system (POS) to automate repetitive non-valued added human tasks & mimic the ways humans understand information and make decisions.

Our platform covers most of the commonly occurring documents used across the lending process with a special focus on affordability documents. Platform augments Human in the loop learning (HITL) with specialised lending focussed deep learning models to ensure bank grade accuracy for document indexing, data extraction and documents validation. Our deep (one-shot) learning models and Explainable AI reports perfectly combine for the technology to pick up new documents and track the accuracy for existing documents with minimum human input thus ensuring easier adoption.

AI driven automated processing for lenders is becoming a competitive advantage to streamline their application processes and speed up approval times. Intelligent automation will be cardinal to fuel the future growth and ensure seamless user experience for the new age borrowers willing to climb the property ladder. If you are inquisitive to know more about how Digilytics AI can help make the journey smoother with smart technical interventions, reach out.

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Author : Nalin Suri, Global Head - Pre Sales & Principal Product Manager