Digital transformation is the key to any organization’s survival. Compared to other industries, the consumer lending industry is slow in the process of transitioning from legacy platforms to digitized environments, 87% of the banks still use legacy systems. Consumer lending and servicing is loaded with data, involves long process times, and is driven by stringent compliance requirements. There is an increased need to move away from manual lending process to a more automated, digitized consumer lending ecosystem to drive efficiencies, reduce costs, and streamline process outcomes. Enabling an end to end digital integration facilitates more seamless and engaging customer experiences, fundamentally changing the business core of the lending industry.
Leveraging AI and Cloud Computing to infuse sustainable value
Though the permeation of these technologies is on the lower side in the lending industry, Cloud Computing and Artificial Intelligence are slowly playing significant roles in transforming the operational and business models of this space. According to a Gartner study, by 2020, banks can offer advice by using AI chatbots that can learn about customer’s user habits. Companies paying equal attention to security in parallel, when we see 65% of FS companies said they have adopted cloud-based security (source: pwc). Cloud Computing platforms are enabling the rapid deployment of services by seamlessly connecting and configuring virtualized technology resources, augmenting faster time to value and reducing the cost of ownership.
Consumer Lending firms leveraging AI and Cloud
While lending firms are building digital capabilities to harness more intelligence on customer needs, they are also actively leveraging Artificial Intelligence to deliver more personalized, context-aware services to their customers. An ideal mortgage lending scenario is loaded with data attributes, making it an ideal destination for AI algorithms to analyze customer behavior and buying probabilities, enabling lenders with more decisive insights for informed decisions. AI areas of impact include Compliance, Marketing, Portfolio Management, Origination, Capital Markets, and Servicing.
What changes move to the cloud?
Key benefits of adopting a cloud platform include higher participation levels across various businesses, quicker access to relevant information, and improved collaboration across time zones, enabling speedy decision making, cloud repositories are scalable, centralized, facilitating data integrity and security while preventing data theft. Centralized data access streamlines document management lifecycle and promotes transparency within borrowers, lenders, investors, and regulators.
In conclusion,
Consumer lending businesses can leverage the symbiotic power of AI and Cloud to drive business impact. With a huge amount of centralized data accumulated in the cloud, AI can access this data to develop better CX strategies. The merger of AI and cloud is bound to influence the evolution of intelligence-driven ecosystems and will lead the next wave of technological disruptions in the consumer lending space.
