American Banker recently published an interesting article on how some banks are still years away from full adoption of artificial intelligence. The article speaks to the larger challenge of banks trying to adopt AI in all facets of their business, without understanding the potential pitfalls.
Artificial intelligence is not a magic bullet, nor is it meant to solve every business challenge. Rather, it is a tool that when applied practically, can solve some of today’s complex problems. As this technology matures, the number of use cases for AI and machine learning adoption will increase.
As an artificial intelligence and computer vision company, we see several ways AI can deliver business results for banks today. The mortgage industry is our favorite example. Businesses are relying on this technology to comb through, classify, arrange, and analyze millions of pages with higher accuracy rates and much faster processing speed (often on the order of 100x-1000x).
Here are three ways AI is already impacting the mortgage industry:
Improve customer experience – AI allows originators to eliminate bottlenecks in the application process. As a result, originators can close loans faster and increase customer satisfaction.
Reduce processing costs per loan packet – Automation solutions don’t need to be scaled as the business grows. In fact, many solutions pay for themselves by handling a greater number of packets than manual labor. Therefore, the longer loan processing technology is implemented, the lower the total cost of ownership becomes. As a result, underwriters and processors are performing more strategic tasks such as problem solving and managing exceptions.
Reduce processing time – Tasks such as reviewing application forms, verifying correct information and submitting approved loan files to the underwriter are extremely time consuming. By eliminating the human element in many of these tasks, artificial intelligence can dramatically reduce the amount of time needed to process a mortgage packet.
Practical artificial intelligence already has the capability to create game-changing results for the mortgage industry by empowering today’s knowledge worker. Through its various techniques, there are no limits to the potential for AI and machine learning to provide meaningful business value in the mortgage industry.