AI Foundry is aiming to further cut the time it takes to originate a mortgage by adding, among other things, artificial intelligence technology designed to improve on optical character recognition. The fintech firm on Tuesday launched a new "cognitive business automation platform" aimed at improving automated decision-making related to loans, and a new version of its Agile Mortgages technology, which loan officers use to automate the collection and organization of documents. The new technology classifies data and information that at a 90%-plus accuracy rate is "significantly more accurate than optical character recognition," according to a company press release. "Competition in the mortgage lending industry is intense, and while many companies have deployed point-of-sale solutions for the customer, the back-end processes have not undergone a digital transformation, until now," Steve Butler, founder and general manager of AI Foundry, said in a press release. How does your digital mortgage stack up? "We will truly disrupt the'status quo' by automating the mortgage application process and enabling lenders to complement those front-end capabilities with one-day mortgage approvals. This not only opens enormous potential for acquiring and delighting new customers; it also drives down the cost per mortgage, so lenders can be more profitable."
UK tech startup, habito, has launched the world's first artificially intelligent Digital Mortgage Adviser (DMA) allowing millions of consumers to discuss their mortgage needs from any connected device, 24/7, without requiring a human broker. Built using AI technology and habito's market-leading algorithm, the DMA marries all the elements of a customer's financial life (e.g. The DMA explains the impact consumers' decisions will have on each mortgage configuration as a traditional mortgage broker would, but in a fraction of the time (average 10 minutes). Habito has the ability to search hundreds of products (versus a handful), so once the advice is complete consumers can be sure they're on the best mortgage for them, which can result in savings of thousands of pounds per year*. In designing the new system, habito analysed hundreds of advice interviews in order to understand what consumers needed and what formed the basis of informative advice.
No longer the "stuff of science fiction," artificial intelligence (AI) is at the heart of a new wave of technology – transforming mortgage lending. Today, lenders are applying powerful new tools based on artificial intelligence and machine learning to make the process of underwriting and approving mortgages faster and more accurate. It is helping lenders predict consumer behavior and evaluate risk more accurately. Machine learning is also making online financial advice from lenders become more intuitive, individualized, accurate, and available 24/7. Financial technology (fintech) is all the rage among mortgage marketers today, but some lenders are far ahead of others in creating and applying AI to their businesses.
Credit institutions are poised to use a combination of artificial intelligence and facial recognition to instantly read the facial expressions of applicants to assess their likelihood of loan repayment. The South China Morning Post reports that Ping An Puhui, a Chinese micro lending unit of China's second-largest life insurer, has developed a digitalized loan process that can "analyse facial expressions of applicants to determine their willingness to repay the loans." The company contends that as a result of using new technologies, including facial recognition and big data, it has seen its customers "more than doubling to 5.5 million from 2 million a year ago," and its loan default rate drop, without the necessity of expanding its staffing. Facial recognition for identity verification and mobile payments just got a big boost with the latest iPhone launch. Thanks to Apple, consumers will become far more accustomed to the use of facial recognition for identity verification and digital payments.
The Russian subsidiary of the Austrian lender Raiffeisenbank has run the country's first ever mortgage deal on blockchain. It could be a taste of more to come in the nation. In the transaction, a mortgage contract was issued as an xml document containing all relevant information, including data on the mortgage loan issuer, the borrower, date and place of signing the deal, the total amount of the loan, and the repayment period. The use of blockchain for mortgage loan issuance is set to increase the safety of data storage, cut depository costs, and speed up transactions for both borrower and lender, Raiffeisenbank said in announcing the deal. Normally, after sealing a mortgage deal, the borrower has to visit the bank again to deposit the mortgage contract, while the application of blockchain allows the borrower to do it remotely, also cutting the amount of paper documents.