Recently, the mortgage market has been increasingly shifting towards more automation within the loan application process. This comes after companies seeing how beneficial automation can be as a cost-saver while still increasing operational efficiency. It is also making waves in the customer service sector of the mortgage industry. Let us take a look at the four major benefits that can result from automation within the loan application process and why lenders should look into automating their processes, if they haven’t already.
The first benefit that can be attributed to lenders deciding to automate their mortgage application processes is increased accuracy. One thing about humans is that they are going to make mistakes. This is true for even the most perfect person. Automating processes allows lenders to eliminate some of these problems. Humans also require training, something that is not required with automation. Lessening mistakes and decreasing costs attributed to training are great methods to help lenders save money.
Another potential benefit resulting from lenders automating their processes is higher productivity and output. Automation is known to be much more efficient than humans and this also comes with higher accuracy. Automation in the mortgage application allows for more applications to be processed in shorter periods of time. Automated processes also help eliminate the break periods associated with human workers. Put simply, if a lender chooses to automate processes associated with the mortgage application process, they will be able to process more applications in shorter periods of time along with processing for longer periods of time. This along with the increased accuracy of automation shows why implementing automation is becoming so common for lenders in the mortgage market.
The third benefit I will discuss is the ability to improve customer service. Automation can have many benefits for customer service, but I will be looking at one, in particular, 24/7 service. The convenience that this affords is monumental for customers. Having to go in to apply for a mortgage could take a long time and may be put off because of other responsibilities. Now, customers can apply online on their own time and around their schedule. Lenders who have this kind of application will do better than those who don’t purely because of convenience.
Lastly, automation helps lenders with fraud detection. Analytics afford lenders the ability to better predict which borrowers are riskier to loan to. It can then conduct fraud analysis to see if the borrowers are too risky to loan to at all. This is just one less thing employees have to do, so it is very beneficial.
Written by Kourtney Manley, Business Analyst at OnlineApplication