3 Technologies to Change The Mortgage Game

Mortgage lending is one of the most essential activities of banks and financial institutions. As a result, banks and financial institutions are always seeking methods to improve and expand their mortgage lending activities. The adoption of modern technologies ushered in a new era for the mortgage industry. Technology makes it easier to deal with the rapid increase in consumer’s demand for mortgages, while also helping to speed up the mortgage process, improve the customer experience, and deliver many other benefits. 

Mortgage – A flourish yet challenging industry 

A mortgage is a loan that borrowers receive when they use their property to secure it. Each bank and financial institution will have its unique mortgage lending method, but in general, it will consist of the following steps:

  • Pre-processing the loan based on the information registered by the customer;
  • Conducting document appraisal and risk assessment;
  • Completing the assessment and preliminary approval of the loan;
  • Approving the loan;
  • Closing the loan;
  • Loan disbursement.

The typical 6-step mortgage loan process. Source: cloudfront.net

According to McKinsey, the demand for mortgage loans for home-buying and refinances has increased substantially in the last two years as interest rates have fallen to historic lows.

The US mortgage industry is experiencing an unprecedented boom. Source: mckinsey.com

According to an ICE Mortgage Technology survey, as a result of the Covid-19 pandemic, customers have altered the way they utilize technology to find mortgage lenders and close loans, while also raising their expectations of digital experiences during the mortgage process. Specifically:

  • 60% of mortgage borrowers would be willing to complete the whole mortgage application online without phone or in-person assistance
  • If the lender takes more than 10 days to approve and close the loan, customer satisfaction drops by 15% points.

Lenders must continually handle a significant number of documents and forms with high transparency and compliance requirements in order to complete a loan. Completing this complicated procedure takes a considerable amount of time and manpower resources. Simultaneously, they must accept a higher level of risk since the manual inspection makes it impossible to avoid problems such as missing data, erroneous data input, compliance violations, and so on. Therefore, mortgage lenders could consider implementing technology to efficiently address difficulties and optimize lending processes.

Technologies come to save the day

The most appropriate response to the difficulties that the mortgage industry is now facing is to use automation to streamline the mortgage lending process. In the digital age, financial institutions may use a variety of technological solutions (IDP, RPA, AI, etc.) to automate processes.

However, rather than implementing technology individually, financial institutions should comprehensively combine different technologies – the application of hyperautomation. This is the best solution for optimizing automation efficiency, minimizing human interaction in the loan process, and improving customer experience,…

Intelligent Document Processing (IDP)

Intelligent Document Processing (IDP) is a technology that combines tools such as machine learning (ML), Optical Character Recognition (OCR), and Computer Vision and Natural Language Processing (NLP). This technology allows for the gathering, extraction, and processing of data from a wide range of document types, including both structured and unstructured data.

IDP Intelligent Data Processing Technology – real-time automatic data processing solution. Source: emagia.com

IDP technology enables the conversion of unstructured and semi-structured data into structured data, and then performs real-time automatic processing to classification, validation and extraction of data. This technology is capable of dealing with a variety of documents necessary in the mortgage lending process, including income verification records, property and debt records, credit information, rent payment information, property, bankruptcy and foreclosure filings, utility bills, and so on.

Using IDP to the mortgage loan process, especially data processing, brings various advantages:

  • Shorten data processing time;
  • Reduce errors, improve accuracy;
  • Ensure compliance and transparency;
  • Reduce costs;
  • Minimize the risk of fraud.

Read more about IDP at: IDP – Vietnamese Businesses’ Very First Step to Hyperautomation

Robotic Process Automation (RPA)

According to the Institute of Robotic Process Automation and Artificial Intelligence, robotic process automation (RPA) is an application that allows the use of robots to automatically perform repetitive processes for transaction processing, data manipulation, and so on in real time. Integrating IDP to the RPA platform creates an intelligent automation system capable of processing all types of data, reducing process disruptions and boosting operational efficiency.

RPA may be used in many tasks of the mortgage lending process to improve operational efficiency, reduce costs, and so on. RPA applications in the mortgage loan process are as follows:

  • Loan pre-processing: RPA bots will automatically verify data in documents and the customer’s loan application. For an excellent customer experience, the automated verification process both avoids mistakes and considerably decreases processing time.
  • Fraud Check: RPA bots automatically analyze data provided by customers through the Loan Origination System (LOS) and visit websites outside to detect probable signals and assess risks, thereby avoiding losses due to fraud.
  • Assign loan handlers: RPA bots can perform navigation management, assign loan processing personnel. This will ensure effective staffing, which will ensure that the lending process runs easily and swiftly, with no difficulties, disruptions, or delays.

Read more about RPA in Loan Processing at: RPA in Financial Services: Loan Processing

Artificial Intelligence (AI)

The mortgage business will see many positive improvements as a result of artificial intelligence. According to a Forbes survey, 55% of CEOs believe AI will offer a competitive edge for their firm in particular and the mortgage lending industry in general.

Based on human intelligence simulation, artificial intelligence automates repetitive processes by using algorithms to detect structure and patterns in data. The following is an example of how AI is used in the mortgage lending process:

  • Data collection and indexing: It takes time to manually fill out the forms, obtains the relevant documentation, and check the records. The use of AI speeds up and improves the accuracy of this process. Due to AI applications, Bank of America raised loan originations by 6% in the first three quarters of 2019 and lowered loan processing time to 20 days.
  • Risk management and loan approval: AI and machine learning can give credit views based on gathered data to identify a customer’s risk level and propensity to repay loans, hence reducing loan approval time.
  • Improve customer experience: AI chatbots play a important role in improving customer experience since they can obtain information from multiple sources and comprehend customer requests in order to deliver relevant and meaningful responses.

akaBot – The trusted hyperautomation solution companion for finance businesses

akaBot is the pioneer hyperautomation solution provider. akaBot provides organizations with a comprehensive automation process solution by combining multiple advanced technologies (AI, Voice, Chatbot, IDP, OCR) with the core technology of RPA.

akaBot – the first company to provide hyperautomation solutions in Vietnam. Source: akabot.com/

akaBot has been supporting over 600 customers in a variety of industries across 14 countries. akaBot has collaborated with around 30 banks in the finance-banking sector, including several well-known institutions such as TPBank, HDBank, Vietcombank, and many others. akaBot has also effectively automated 500+ banking processes, delivering considerable benefits when applying their solution.

Many national and international organizations have recognized akaBot’s solution:

  • Top 5 RPA Platforms voted by G2;
  • Best Process Automation Solution for Banks at The Asian Banker Awards;
  • Golden Globe Winner for Best Implementation in Asia – Pacific at IT World Awards

To improve customer experience, financial institutions may swiftly adopt hyper-automation in the mortgage lending process. Please contact akaBot to learn more about hyperautomation solution and receive prompt recommendations.


A Guide to Automating Mortgage Document Data Extraction

Automatically read out documents from mortgage applications with Intelligent Document Processing 

How IDP Reduces Loan Close Time 

RPA in Financial Services: Loan Processing 


Is RPA a Good Fit for Mortgage? 

Mortgage Automation: Artificial Intelligence

How Digital Technology Changed The Face Of The Mortgage Industry 


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