Digital Lending Made Easier with Mortgage Chatbots

Digital Lending Made Easier with Mortgage Chatbots

In the past decade, almost all tasks related to transactions involved paperwork in some way or the other. Due to the evolution of digital technology, the scenario has changed. The latter dominates the majority of the tasks these days.

Transforming the mortgaging process aside, the penetration of digital technology in the process has also raised the bar for customers’ expectations.

Better output with minimal effort is one of the notable highlights of digital lending. As regards the process, it has become as easy for buyers as buying an item from an online store. It makes use of chatbots which comes in handy to simplify many operations.

Going by statistical figures, 80% of businesses would use chatbots, and 85% of customers would interact with interactive voice response (IVR) technology. These figures explain which digital lending transactions are under the spotlight.

Plus, these stats also highlight the bright prospects of mortgage chatbots in digital lending. The introduction to mortgage chatbots in digital lending has helped highlight the role of automation.

Automation powers chatbots and simplifies digital-lending-related tasks in several ways. Read on to find them out in the article.

Learn how AI Chatbot will transform the Mortgage Industry in 2021


Chatbots automate customer interactions

Deploying chatbots is one of the smartest ways to accomplish repetitive tasks within a shorter turnaround time. Its method of working revolves around the feature of automation, which makes it possible for customers to get timely solutions without waiting for a longer duration.

When it comes to mortgages, digital chatbots make use of artificial intelligence (AI) to answer questions and perform other tasks like verification of digital documents. Such tasks, in general, necessitate data sifting. The automation technology of chatbots is the best way to sift through large chunks of data, especially when you need to do so within a few seconds.

Above everything else, most digital lenders think about using chatbots for their seamless interaction. This, in turn, leads to two additional benefits: it minimizes the operational costs on one hand, and it boosts sales on the other.

The predominance of the AI component of chatbots is visible in the current customer service of digital lenders. Apart from refining customer service in lending, it has also helped redefine it.

Among other things, the digital interactions with chatbots give providers an option to offer round-the-clock solutions to their customers for some common issues. This arrangement suffices to offer reliable solutions to the majority of customer issues at the basic level.


How mortgage chatbots reduce the time required for the submission of documents

The days of lengthy paperwork and extensive documentation are long gone. Nowadays, customers neither have the time nor the patience to bear with long sessions of documentation.

Besides, carrying large piles of documents leads to inconvenience. It was a feasible option until a few years ago but it has become obsolete now.

Digital mortgage applications such as chatbots have helped eliminate this requirement. Instead of asking the customers to carry the hard copies of relevant documents, most providers look for the necessary information from aggregators and third-party providers through chatbots.

Apart from collecting information, AI chatbots help both lenders and their customers in storing information in the digital space without any inconvenience.

These days, chatbots have advanced enough to identify files in different formats. As a result, AI-powered bots lend a helping hand to the collation of documents in different formats. These include images, pdf, and other formats. AI-powered chatbots collect this information from many third-party sources.

Not only this, but it also gives lenders full control to perform tasks related to compliance and auditing.

Chatbots prove to be useful for digital lending-related operations for providers by fast-tracking the procedure with the aforementioned attributes.

Here’s a ready-to-deploy Smart skill that will help users upload the documents required to process their request:


The role of chatbots in the validation of documents

After a digital submission of relevant documents by a user, mortgage bots analyze them properly to classify them into different categories. Mortgage bots follow this rule while going through all incoming digital documents from customers’ end.

Next, these bots look for the important information as necessitated by a lender. These include a customer’s name, their remuneration, the name of the employer under whom they are working, and so on.

Mortgage bots go through the documented information carefully. They are designed to find out all the necessary customer data available in the submitted digital copies of documents before proceeding to the next step.

In case of unavailability of an important detail or multiple details, mortgage bots raise a flag. They may also do so if the documents are inconsistent or do not match. This helps a lender verify if a customer has submitted authentic copies of documents as per the requirements to process their digital lending application.

After the process of reconciliation, mortgage bots take the next action depending on the outcome. If the documents provided match all the requirements, these bots notify the customer that their application process is complete.

On the other hand, there is also the possibility of missing information or other exceptions. In such cases, mortgage bots notify the banking institution about it. This way, it helps lenders in making a prompt decision.

In general, these tasks can be time-taking or tedious if done by human effort. Because these tasks are repetitive by nature, these tasks oftentimes lead to boredom. However, mortgage bots work diligently to accomplish these tasks and deliver the desired outcomes in a quick time.

Read More: Why Financial Services Brands Should Leverage Conversational AI for Customer Care

Mortgage chatbots protect the communication and the documents between lenders and borrowers

Digital lending involves two parties: the lender and the borrower. Protecting the communication and documents concerning the interaction of both is important. It is one of the basic requirements to make the whole procedure secure.

Mortgage bots play an important role in protecting communication and documents from prying eyes. As a result, both the lender and the borrower find the whole process safe. What makes it possible for a bot to achieve this objective is the integration of a centralized authentication system with digital lending solutions.

The addition of a security layer to the whole process of digital lending by mortgage bots makes a vital contribution to ensure transparency. In a way, it helps reduce the possibility of financial fraud which prevents the likelihood of lenders or borrowers suffering a loss.


How mortgage chatbots minimize time and effort in decision-making and processing offers

Decision-making is one of the most important aspects of closing a loan application. An individual applies for a loan only depending on their demands. Plus, other factors also decide the fate of a loan application.

For instance, the eligibility of a person who applies for a loan is an important requirement. Every lender has some criteria. A borrower must meet the requirement of the lender for the successful processing of their loan application. Considering the variety of offers and schemes that lenders provide to their customers these days, it can put both the former and the latter at a disadvantage. Mortgage bots play a vital role in forming the decision-making process for customers.

Identifying the best offers for a specific customer can be a tedious process for a lender. As is the case with commercial lending, this practice can necessitate a long duration of time for mortgage loans too.

Among other things, mortgage bots present the best offers and schemes to customers. They do it considering all the eligibility criteria of customers.

This helps the relevant customers in making quick decisions on whether they are interested in taking a loan offer from a lender.

Browsing through several offers from a lender can be monotonous. Nine out of ten times, customers are frustrated looking for the best offer. This can have a negative influence on their outcome to apply for a loan.

They are more likely to choose a loan offer if they find its important details at their fingertips. This is precisely where mortgage bots come into the picture. These bots showcase the best offers to customers corresponding to their requirements and eligibility criteria.

With AI chatbots, it becomes easy to classify and split documents into different file structures. They use machine learning algorithms and data mining to conclude this process.

For easy verification and modification of documents, mortgage chatbots extract appropriate data from the submitted documents and convert them into a format that makes the document validation simple and easy.

This whole process eases the lenders to distribute documents into different categories. Based on it, they prescribe the best loan offers to customers.

Thus, the whole process of presenting relevant offers to customers becomes streamlined. It goes on to help lenders in getting the best response from their customers and also in closing more digital lending deals at the subsequent stages.

Here's an expert guide on Implementing Conversational AI for Financial Services


Mortgage chatbots serve 24x7x365

Unlike their human counterparts, chatbots don’t take a break. What it means is that a mortgage chatbot can keep performing as long as a lender wants, without any breakdown.

Professionals, on the other hand, have a fixed timing of their duty hours. If a customer drops an email or details the number outside the duty hours, it will not be immediately entertained.

Most customers prefer that their lenders be available 24x7. While it may be next to impossible to achieve this feat with humans at work, mortgage chatbots make it possible.

Besides, chatbots have an edge over human professionals because they have a ready-made answer for each query. Because it uses artificial intelligence and machine learning to analyze data, it becomes more efficient in providing solutions without taking a lot of time.


The role of chatbots in electronic closing

Following the verification of the submitted documents, the next important step in digital lending is closing the deal. The traditional method necessitated lenders to meet an in-person agent to close such lending deals.  However, the emergence of mortgage chatbots has changed the process altogether.

Meeting an in-person agent not only proves to be a time-consuming practice but also delays or slows down the process due to discussion-related concerns. However, mortgage chatbots reduce the possibility of delays, particularly with the challenges linked to the clearance of documentation.

Together with the concept of digital lending, mortgage chatbots provide a viable solution to beat the challenge. It eliminates the role of paperwork which constitutes the root cause of the problem.

By adding mobile capability and using the power of the Internet, it reduces the existing friction in the financing process. These attributes make electronic closing a simple and straightforward process.

Other than electronic closure, mortgage chatbots also make another key contribution to the efforts of lenders. They help lenders evaluate the transaction history of customers to facilitate the approval of the lending application request of borrowers.

Learn More: 9 Best Chatbots in the Financial Services Industry

To Sum Up

The definition of lending has changed over the last few years. Digital lending has replaced traditional paperwork-based mortgage lending. Credit goes to mortgage chatbots that operate on AI technology and make the process more transparent, fast, and secure.

Though mortgage chatbots are the best option for digital lending, their best is yet to come. With the rapid advancements in artificial intelligence and digital technology, you can expect many more innovations and advancements in the coming years.

Keeping the aforementioned benefits of mortgage chatbots in digital lending, both lenders and customers should think of using them to reduce time and effort in processing digital mortgage loans. This can go a long way toward making the whole process transparent and efficient for lenders. Also, it can help with shaping up and improving the digital lending experience for borrowers.

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