Gone are the days when borrowers remained anxious for getting loans. With the advent of digital lending platform, it has become easier to automate the decision-making process. These processes have the capability to disrupt the mortgage industry. According to an estimation, a single mortgage approximately takes 46-48 days to close and the lender induce USD 2000 and 2500 per loan. These platforms have eradicated the bottlenecks and made the lending process easier.
In this article, we will discuss more about these AI powered lending platform and the associated benefits. Let us first understand the meaning of AI powered digital lending platform.
What is an AI Powered Digital Lending Platform?
A digital lending platform gives the home buyers and customers an ability to communicate with the lender on with the help of digital channels such as desktop, smartphone, website. The process uses artificial intelligence to automate the user experience, leverage the decision making, introduce personalization.
AI powered digital lending platform is user facing application which incorporates mortgage technology avenues which are helpful in digitizing end to end processes. It connects all the platforms from customer and wholesale communication to title, sales, origination and servicing.
Benefits of the AI Powered Digital Lending Platform: –
According to an estimation by Research Nester, approximately 99.21% of lenders believe that amalgamation of technology can remarkably improve mortgage processes. Various procedures become easy with the help of technology such as:
- Obtaining pre-qualification
- Submitting documents
- Receiving updates
- Other mortgage procedures
Some of the prominent benefits of the platform are listed below-
- Fraud detection and regulatory compliance
The AI powered platform have decision management system which allows early detection of the fraud and an exhaustive audit documentation. During the regular operations, 3rd party auditing can be an arduous task when it is done manually. With the usage of right kind of software, whatever information obtained, proves to be accurate. Moreover, these software captures accurate information and eradicate errors immediately.
There has been rising cases of malicious activities and vigilance has become extremely important. With lacking proper analysis, various criminal activities can go undetected wherein, artificial intelligence is able analyze large amount of data.
- Better investment evaluation
These software has right investment recommendations which are able to match with the right appetite of the institutions. Additionally, they are able to accurately evaluate the client funding proposals which removes the risk of loss. The decisions taken by the software are better than the human analysts. In fact, the investment analysis software makes the processes easier and able to introduce much more variables.
- Impeccable customer experience
Customers are continuously looking for the short turnaround time, and decision management system is able to eradicate the time to know various information such as KYC (know your customers). Additionally, with the use of accurate business software, business decisions can be implemented and executed without any lengthy procedures.
Banks claim that they are able to earn customer trust and confidence by eliminating the turnaround time. Furthermore, while making client account the information is correctly set up, this ensures cumbersome experience.
- Personalized product recommendation
AI has been utilized by service and product providers for the precision marketing. The service provider is helpful in targeting customers with their unique demographic data, so that there is a maximum chance of conversion. Digital lending platform can utilize the Artificial Intelligence in the same way in order to upsell or cross sell the service or product.
The platform is able to auto recommend mortgage services on the basis of the customer intelligence insights.
- AI bots for customer queries
A digital lending platform which is powered by the AI bots is able to automate a huge pool of servicing communication. Whenever customer submits any query or tries to get an information, the chat bot can see through humongous lot of information and give one to one conversation to the customers.
AI platform lending market scenarios: –
The global AI platform lending market is anticipated to garner a significant revenue of USD 90 billion by the end of 2033 by growing at a CAGR of 25.1% of the CAGR. The growth of the market is attributed to the rise in the digital transformation spending worldwide.
Furthermore, the market in North America region is projected to hold the largest share. It is due to the expanding digital banking activities in the region. Also, there is a rise in credit card holders which leads to rising demand of the application.
In a nut shell,
The above parameters are the testimony that the market hold lucrative opportunities for investors. The market has huge scope of growth in the future. Although, a brief study of market is necessary before taking a plunge.
