Businesses evolve. Markets and customer needs change every few years and businesses have to adapt to it. The lending sector is no exception. The lending process has changed so much in the last two decades.
In the early 90s and 2000s, lenders wanted borrowers to reach out to them for loans. A major portion of the process was offline - right from filling a loan form to submitting the bank statements. But, things have changed. Today, mortgage companies take their service to the borrowers. They understood that a good borrower experience is the key to staying ahead of the competition. And thanks to the internet and web architecture, the entire lending process today has become easy and effortless.
But, there are still inefficiencies that needs to be addressed. Inefficiencies that is costing lenders too much time and effort. Inefficiencies that could be avoided with the implementation of the right technology.
Before talking about Mortgage Tech 2.0, let’s talk about Mortgage Tech 1.0.
The first wave of technology implementation in the mortgage space vastly transformed the front office operations. The solutions widely adopted by mortgage companies were designed to solve two functions - collecting and organizing loan documents from applicants. And, this worked like a charm. The process led to a huge inflow of loan applications. But, it created a bottleneck for the middle office - where underwriters processed the applications to determine eligibility and creditworthiness of applicants.
While the front office had all the modern tools they need, the underwriting team still used spreadsheet macros and manual processes to vet bank statements and to calculate qualified income. Mortgage tech companies have failed to see the potential in building solution for middle office personnel.
But, Mortgage Tech 2.0 will change all that.
Mortgage Tech 2.0 will use the state of the art technologies like AI and machine learning to improve the productivity and efficiency of the middle office personnel. It will automate data capture from bank statements and will combine the output with credit risk and cash flow models to arrive at the right qualified income. This will eliminate the bottleneck that existed and will make lenders disburse more loans than before.
Prudent AI is the first holistic Mortgage Tech 2.0 platform designed to achieve this goal,
Prudent AI’s AI-powered data analysis is 100% accurate and brings down the document processing time from 1-3 days to under 15 minutes. The AI engine processes 99% of the transactions and brings in human verification only for transactions the model couldn’t make sense of completely. Also, our AI models is designed to arrive at qualified income from the bank statement data and is also designed to flag large transactions and fraudulent entries in bank statements. This eliminates the chance of human error altogether and in turn helps lenders take the right lending decisions.
Lenders across the country have already started to see improvement in their operations after using Prudent AI. Lendsure, a major mortgage corporation in California, has seen a 66% increase in loan volumes after adopting Prudent AI. Lendsure’s middle office has completely moved spreadsheet macros few weeks into using Prudent AI.
When spoken to Nelo Maher, one of the sales executives of Lendsure, she says “Prudent AI saves me minimum 2 hours time for each loan I process. It is amazing.”
We’ve designed Prudent AI for lenders of all sizes and hence we’re conscious about scalability and pricing. Our platform can scale with your company without burning a huge hole in your pockets. We believe that cost plays a crucial role in widespread technology adoption and hence we’ve designed our pricing to be extremely affordable.
We believe the current capabilities of Prudent AI is just the first step in building an amazing Mortgage Tech 2.0 solution. We’re building a ton of amazing stuff and we can’t wait to show them all.