How Fintech Automation is Changing the Face of the Lending Industry
Understanding the Changing Landscape in the Mortgage Industry The mortgage industry is under enormous pressure to perform in the face of fierce competition, increased due diligence for loans and borrowing (due to the COVID-9 pandemic and its economic ramifications), crunching timeliness, and ever-growing data. According to Gartner, a human error in the financial sector results in 25,000 hours of pointless rework per year, costing up to $878,000. Our only stumbling block, we believe, is fintech automation. The global fintech industry is estimated at $65,88,780mn in 2021 and is projected to reach $1,66,52,680mn by 2028 at a CAGR of 13.9% for the forecasted period. Fintech automation can define even the most unstructured data and support lending process automation to deliver a resource, cost, and time-efficient process. Mortgage and lending have already been reimagined using automated technology such as chatbots and digital assistance. Given the massive amount of data, the need for real-time, data-driven strategies for effective customer UX and UI, and loyalty retention in the mortgage lending industry, this shift is inevitable. Customer onboarding to Know Your Customer (KYC), legal processes, due diligence, credit checks, and form fill-ups have previously been observed to require 50-75% of the onboarding process cost. However, well-integrated lending automation, combined with optical character recognition and natural language processing, assists mortgage lenders in shortening the lending cycle and lowering costs. “Generative AI enables bank CIOs to offer technology solutions to the business in pursuit of revenue growth,” according to Moutusi Sau, VP Analyst at Gartner, “while autonomic systems and privacy-enhancing computation are long-term solutions that provide new options for business transformation in financial services.” We can cite several reasons for the rapid adoption of automated technology as a core business process in lending process automation across verticals. Customer expectations have risen dramatically in terms of complete transparency, customer-centric, highly personalized interactions, and maximum participation. As a result, maximum fintech implementation can be seen in customer relationship management (CRM), accounts payables, mortgage automation, risk management, payment arrears, reconciliation requirements, insurance premium calculations and settlements, back office, and front office, among other areas. Aside from process integrations, the lending industry requires fintech capability to eliminate cyber fraud risks and identity thefts, as well as a digitally secured infrastructure to protect customer data related to mortgage and lending. Customers feel empowered with access to secure omnipresent, omnichannel, digital transactions, and payments when lenders provide mortgage lending automation with simplified tasks. Self-service in CRM with chatbots and instructive guidelines, according to Deloitte’s Finance 2025 report, creates a better customer interface. Furthermore, mortgage lenders can use fintech automation to absorb data from borrower application forms, extract information from borrower payroll applications, and automatically upload loan data into respective portals. More importantly, automated technology enables credit decision-making systems and microdata inspection with low error rates for seamless loan approval and disbursement. Considering this massive shift, organizations have been striving hard to develop deeper hyper-automation processes or at least implement partial automation, machine learning, and artificial intelligence to attain optimum operational efficiency. Categorically, RPA tools have also matured from traditional desktop automation to enterprise solutions. This has profusely helped in managing complex processes like strategic decision-making, cognitive learning capability, user interfaces, and so forth. Fintech automation is undeniably booming, and competition is heating up. Companies are planning both organic (diversification, geographical expansion, etc.) and inorganic (mergers and acquisitions) strategies to gain a competitive advantage and remain sustainable. Gartner estimates that banks and investment firms will spend $623 billion on technology products and services by the end of 2022. The major investments will be in generative AI, autonomic systems, and threat-nullifying technologies. Final Thoughts During our research, we have found that CEOs across the globe believe that cloud-based ERP, cognitive technologies, and hyper-automation will radically simplify lending processes and accelerate the lending industry as a whole and not in silos. In fact, hyper automation is already in its nascent stage of enterprise adoption. Apart from this, the banking and investment services will also witness larger use of generative artificial intelligence, generative adversarial networks (GANs), and natural language generations for fraud detection, predictive analysis, synthetic data generation, artificial intelligence-backed follow-ups, and risk-factor modelling. With the help of algorithm-driven and interactive AI and robots, new service models will emerge. This will not only diversify the financial workforce, but will also link the entire organization into a real-time, digitally connected workplace. What’s Next? Tavant’s consulting-driven approach to automation helps mortgage lenders and banks significantly improve productivity and enhance customer experiences using our deep automation and domain expertise. By combining the power of industry tools and accelerators, we drive organization-wide transformation through RPA, ML, and AI to solve your most important business challenges. 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Tavant Announces Integration with Experian to Drive Mortgage Application Efficiency with Enhanced Instant Form Fill
SANTA CLARA, Calif., Oct. 20, 2022 SANTA CLARA, Calif., Oct. 20, 2022 – Tavant, a Silicon Valley-based provider of industry-leading digital lending solutions, and Experian, the world’s leading global information services company, are working together to minimize friction in the mortgage application process and improve the borrower’s loan application experience. By integrating Experian’s Enhanced Instant Form Fill for Mortgage with FinXperience and FinConnect, components of Tavant’s VΞLOX digital lending platform, lenders, with a consumer‘s permission, can automate data entry and prefill borrower information on the Uniform Residential Loan Application (URLA) – providing a more simple and seamless experience for borrowers and loan officers. Experian’s Enhanced Instant Form Fill empowers borrowers to permission access to their personal data, which is automatically added to their mortgage application. With increased automation, lenders can drive efficiency, reduce friction, and grow their business. Enhanced Instant Form Fill also leverages Experian’s fraud and identity solutions, Precise ID® and FraudNet, to authenticate borrowers and protect their information throughout the experience. “We’re excited to integrate with Tavant to help lenders streamline their mortgage application process,” said Susan Allen, Head of Product at Experian Mortgage. “By reducing manual data entry, lenders can modernize their borrower experience, increase pull-through and conversion rates, and improve data accuracy.” FinXperience, Tavant’s intuitive platform of point-of-sale experiences, and FinConnect, their intelligent lending data and enterprise mortgage services integration hub, are VΞLOX products and implementable across all lending channels, including retail, wholesale, and others. These integrations will allow lenders to increase automation, reduce manual data entry, and provide their borrowers with more elegant and comfortable user journeys. This will decrease their time to completion and improve the overall application conversion rate. “We at Tavant are committed to improving the consumer experience, and it is more important now than ever before for lenders to find ways to differentiate their offerings and drive efficiency,” said Sarvesh Mahesh, CEO of Tavant. “Tavant is the right partner to eliminate inefficient, highly manual, and extremely costly procedures, and start focusing on creating a frictionless customer journey and increasing application completion.” VΞLOX is an AI-powered digital lending product suite that delivers best-in-class lender and borrower experiences. It utilizes automation and straight-through processing to configure immersive lending journeys that accelerate loan manufacturing and improve loan quality. Tavant’s VΞLOX suite of products optimizes the back office, simplifies the middle office, and transforms the front-end consumer experience into an efficient digital data flow. Find Tavant on LinkedIn and Twitter About Experian Experian is the world’s leading global information services company. During life’s big moments – from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers – we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organizations to prevent identity fraud and crime. We have 20,600 people operating across 43 countries and every day we’re investing in new technologies, talented people, and innovation to help all our clients maximize every opportunity. We are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index. Learn more at www.experianplc.com or visit our global content hub at our global news blog for the latest news and insights from the Group. Experian and the Experian trademarks used herein are trademarks or registered trademarks of Experian. Other product or company names mentioned herein are the property of their respective owners.