Undoubtedly, "Artificial Intelligence" has become the latest trend in the post-pandemic era. Businesses are actively exploring this technology to automate tasks and enhance their profitability. Artificial intelligence lending has permeated all aspects of human life and holds even greater potential for the future.
According to a survey conducted by Gartner , the number of organizations implementing artificial intelligence has grown significantly from 4% to an astonishing 14%. At Digilytics AI, we are at the forefront of addressing these issues. Now, let's delve into how we accomplish this feat.
Despite the rapid evolution of the world, mortgage lending has surprisingly lagged behind, progressing in a disorganized and sluggish manner. The current origination process employed by lenders in the mortgage industry is lengthy and exasperating.
The typical artificial intelligence lending process in the digital mortgage lending industry requires around 40% manual intervention, with 32 days as an average time to close (from start to finish as illustrated in fig 1).
With the increasing number of mortgage organizations investing in digital mortgage lending, modern innovations and technologies, only a few of these entities genuinely grasp the concept of these emerging technologies and recognize their transformative potential. These forward-thinking organizations understand that leveraging these technologies can revolutionize the ai mortgage industry in a groundbreaking way.
Let’s understand it with a story
Jill, an underwriter working in a leading mortgage bank, was doing things the old-fashioned way, just as it has always been done, the manual way, back and forth with documents. Most of her colleagues had the same story.
They had to spend long hours gathering documents and there was a lack of transparency about the status of the process, mental fatigue, and uncertainty about what outstanding documentation could be requested later.
They relied on a traditional paper-based manual process, struggling to ingest and capture relevant data due to high complexity and lack of tools to automate the processes.
Intelligent Digital: The Secret Sauce
On making the mortgage lender’s life easier | AI mortgage lending
The hype surrounding digitization in the mortgage industry has been making headlines for a considerable period. However, it is crucial to recognize that digitization alone cannot deliver the desired advantages.
Lenders are currently facing challenges in assimilating and capturing pertinent data due to significant complexity and the absence of appropriate tools. At Digilytics AI, we are at the forefront of addressing these issues. Now, let's delve into how we accomplish this feat.
#1 Computer Vision Comes to the Rescue
The implementation of Computer Vision technology proves to be a valuable asset in the mortgage industry. It empowers systems to extract data from images or printed sources, convert it into electronic format, and store it for future utilization.
Discover How Digilytics AI Leverages Computer Vision in Ingenious and Tailored Approaches to Address Industry Demands.
At Digilytics AI, we leverage computer vision in unique ways, finely tuned to cater to the specific needs of the industry. Our revolutionary product, RevEl, enables seamless processing, management, and extraction of insights from e-documents. It serves as an AI extension to Electronic Document Management Systems (EDMs), augmenting business processes with intelligent capabilities. By providing access to AI-powered analytics and automation features, RevEl significantly enhances process efficiency.
#2 Harnessing the Power of Machine Learning Models
Various documents within the AI mortgage lending industry, including closing disclosures, loan applications, payslips, bank statements, and appraisals, contain a wealth of valuable information that can be leveraged to extract meaningful insights.
AI-driven document processing proves to be a formidable tool in streamlining workflows, minimizing delays, and mitigating errors arising from manual document classification.
RevEl, our innovative product, utilizes recommendation engine modules to automatically recognize and classify documents based on their structural features (layout-based document classification), textual characteristics (content-based document classification), or a combination of both.
This powerful functionality enables users to seamlessly classify a wide range of mortgage-specific documents, including payslips, bank statements, legal documents, valuation documents, affordability assessments, correspondences, and more. By ensuring that crucial information is readily available for intelligent decision-making, RevEl eliminates the risks and costs associated with manual document management. As a result, the time to close and time to fund is significantly improved.
Furthermore, these machine learning models play a vital role in populating an activity list for loan processors. The data extracted from the documents serves as input to the models, which generate a standardized activity list for processors to work on. This fosters uniformity in processing and substantially reduces overall turnaround times.
Machine learning algorithms exhibit exceptional accuracy and reliability, even when dealing with unstructured data. There are various types of algorithms that can be employed for document classification, ensuring optimal performance in this critical domain.
#3 Unleashing the Power of Capture 2.0
Capture 2.0, also known as "intelligent data capture," combines computer vision solutions and machine learning models to assist lenders in accurately identifying and classifying a greater number of loan documents, as well as extracting data from them with precision. Machine learning models can be trained to detect and recognize patterns, enabling them to derive valuable insights from vast amounts of data.
By leveraging intelligent data capture and implementing smart validations, lenders can automate the process of verifying data completeness, correctness, and consistency across the documents submitted as part of the loan application. This automation leads to reduced processing times and significantly shorter loan closure periods.
By utilizing AI, the intelligent processing of scanned paper documents can greatly diminish reliance on physical paper and manual validation processes. Moreover, the ability to classify cases into distinct processing queues and maintain real-time status updates for remote internal staff and external partners can substantially streamline operations. Lastly, the explainability of AI, accompanied by detailed reports, significantly enhances compliance and quality assurance activities.
Pioneering Disruptive Technology for Profitable Business Growth
Digilytics AI is deeply ingrained in harnessing disruptive technology to propel business growth and profitability. As change-makers, we thrive on challenging the status quo and revolutionizing the industry through our authentic and innovative approach. Our team comprises freethinkers, optimists, dedicated achievers, analytical minds, and loyal professionals who prioritize the success of our clients and colleagues.
Founded by Arindom Basu, DigilyticsTM stands as a leading provider of user-friendly AI solutions. Headquartered in London, UK, we have a strong presence across the United States and India.