Frequent changes in regulatory norms and compliance legislation, rising origination costs, inflated infrastructure costs are creating disruption in the mortgage industry, and the implications of that disruption are having significant financial consequences. Technology is the key in helping mortgage banks to reduce the costs without compromising the quality of service.Here are some of the ways in which Mortgage Banks can slash costs by adopting Technology.
Digital Mortgage solutions like online application forms, POS solutions and Electronic data collection for collecting income, tax assets and bank statements can reduce the origination costs for Mortgage banks.
Digital underwriting facilitates rapid decision making through rule-based solutions which improves credit decision quality and hence minimizes compliance costs.
Digital Mortgages can further reduce costs by employing productivity enhancement features such as digitization of documents, implementation of powerful business rules and optimized workflows.
Automation will reduce or eliminate inherent risks from manual processing such as keying errors, missed tasks, and misapplied rules.
Automation increases availability of human resources to pursue higher level cognitive tasks other than handling repetitive manual tasks.
With workflow automation, Mortgage banks have improved visibility into the lending Process with ability to gather data for cost analytics and therefore can improve the processes by monitoring the results.
Since AI has the potential to supplement and replace different manual tasks within the loan processing cycle, the automation will result in reduced costs.
Using advanced data analytics technologies AI can provide cost-effective ways to comply with regulatory mandates.
AI can enhance operational efficiency and productivity by improving fraud detection accuracy in Loan Origination Systems by using advanced screening processes.
Since Mortgage Industry is predominantly process driven, there are a lot of routine processes in loan processing which can be subjected to RPA to reduce cost.
Intelligent automation using OCR and machine learning capabilities can be useful in loan document processing operations which are performed in high volume and are rules based.
RPA can also help in ordering and sequencing the processes within in the Mortgage banks in the most effective manner so as to increase operational efficiency.
With increase in data storage costs, Hybrid cloud is an alternative to a purely private cloud which is expensive to scale and adopt according to business needs.
Mortgage banks can use dedicated storage devices or private cloud storage for data that require frequent access and only use public cloud storage for archival data.
Implementing automation rules on the hybrid cloud provides the ability to scale resources up and down as business demands change.
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