With thinner margins, companies seek to provide differentiated customer offerings while ensuring their operations are at their peak efficiencies. As per Gartner, by 2030, 80% of heritage financial services firms will go out of business, become commoditized or exist only formally but not compete effectively. These firms would struggle for relevance as global digital platforms, Fintech companies, and other nontraditional players gain greater market share, using technology to change the economics and business models of the industry.
So, it is vital for companies to up their tech play and be 100% sure that they are right the first time – as we don’t have time to make mistakes now. Document automation can simplify complex paper-based processes through which the data can be better managed and, most importantly, cut down on TAT and costs. Let’s examine how some mortgage peers have benefited through OCR or IDP solutions.
Real-life Benefits | Manual to OCR/IDP | OCR to IDP | Key Insights | How DocVu.AI – an IDP, can help |
Time saved | 60% | 90% | Most of the companies which used to take over 45 minutes to process a loan package now process applications in less than 5 mins. | DocVu.AI helps to classify documents accurately and extract relevant data in record times. The workflow engine makes it highly flexible and easy to integrate seamlessly into the lender’s tech ecosystem. |
Costs saved in operations | 53% | 40% | Auto-analysis with the human in the loop improved operational efficiencies saving over 50% of costs. Lenders upgrading to an intelligent document processing solution has seen better cost savings. | Highly automated operations reduce manual labor and improve TAT, thereby saving substantial loan processing costs. Improved stickiness can improve the topline in the long run. |
ROI within | 5 months | 3 months* | On average, lenders achieved ROI within 5 months, making the case to upgrade to OCR/IDP extremely attractive. | DocVu.AI has ready integrations with leading LOS tech providers. The solution has a pre-configured mortgage library for over 2000 fields across 2000+ mortgage documents. |
Man hours saved per month | 150 | 250* | Due to reduced manual processing, lenders reported a substantial decrease in man hours for operational processes. | DocVu.AI, with its pre-trained AI/ML models, provides guaranteed data extraction accuracy of over 99.5%. DocVu.AI can reduce manual processes by over 90% with human-in-the-loop automation and straight-through processing. |
Productivity improved | 85% | 54% | Automated processes saved over $10 per loan with increased productivity. | The solution can manage most repetitive tasks with cognitive abilities – this helps the staff focus on more important issues. With highly streamlined operations and comprehensive data, underwriters can produce better and quicker results. |
Reduction in manual data entry | 10X | 15X* | Reduced manual data entry brings more certainty and scalability and builds a foundation for a more sustainable business process. | DocVu.AI can reduce over 90% of manual tasks with automated document processing. The API-based integrators provide reliable and secure interconnections with third-party systems to digitize further manually-driven processes such as appraisals, valuations, QC audits, etc. |
Document indexing and extraction Accuracy | 90% | 99.50% | OCR’s accuracy is lesser than IDP as the latter can process templateless documents with unstructured data through AI-powered tools. | DocVu.AI leverages intelligent automation powered by computer vision, noise elimination from images, and template-less processing that extracts accurate data quickly, achieving over 99.5% accuracy. |
When a lender processes over 500-page mortgage packages manually, vital data are likely to be missed. It is an outdated and inefficient process with no certainty over operations. Manual processing leads to too many back-and-forth documents with the customers, thereby being unable to turn around closures within stipulated times. Apart from the above business benefits, there are many other advantages, such as more flexible operations, more scalable operations, and more interconnected technologies with a better propensity to partner with the digital ecosystem and be better prepared to pre-close and post-close QC audits.
Mortgages being complex with multiple stakeholders involved in the processing of an application, it can be extremely helpful if the solution has relevant industry expertise. IDP solutions, such as DocVu.AI, combine advanced document automation tech with over 25 years of mortgage expertise. DocVu.AI understands the complexities of the current mortgage processing and can provide digital solutions to prepare for more digitized financial services in 2030.
DocVu.AI – Key features:
Customer Onboarding & KYC
The solution helps to classify documents from loan packages accurately, collect customer information from multiple documents, and record their data securely, making loan processing faster and more efficient.
Automated loan processing
DocVu helps accurately extract information from mortgage documents – The AI-powered solution can recognize relevant data points from highly unstructured formats and improve loan closure time with superior customer experience.
Mortgage underwriting
Utilizes the AI engine to simplify mortgage underwriting to provide accurate and relevant information for the underwriters to make faster decisions and save cost.
Mortgage QC Audits
Improve the validation of your credit decision by faster analyzing the pre-funding and post-closure checks and closing mortgages accurately.
Mortgage Appraisals & Valuations
Evaluate property valuation and run mandatory verifications digitally to improve visibility into mortgage transactions.
In conclusion,
By leveraging advanced document automation tech with over 25 years of mortgage expertise, DocVu.AI can help companies prepare for a more digitized future and stay ahead of the competition. Investing in document processing automation is not just about cutting costs but also about improving the customer experience and building a sustainable business process. It is time for companies to up their tech play and switch to automation to be sure they get it right the first time.
