Even though your mortgage organisation may be running on what you think is the best technology for mortgage processing, you may be missing out on straight-through processing (STP) benefits.
Having optimised on current capabilities and human effectiveness, in order to achieve greater efficiency, reduce cost and risk, and increase throughput in today’s competitive mortgage business environment, you need to focus on one question: what do we need to do to achieve real, measurable and sustainable STP?
The mortgage industry is known for process-driven workflows with multiple internal and external stakeholders and influencers. And the industry is also known for the huge amounts of data and documents needed for loan processing. The historical “stare and compare”–staring at one screen to compare to a printed document and vice versa– not only eats into productivity and profitability, but also exposes you to additional risk due to human error – and slows STP.
Automation is no longer a nice-to-have, but essential, for continued competitiveness in the mortgage industry, for three key reasons:
1. Winning and Keeping Customers:
Word-of-mouth referrals and social media are the lifeblood of building and maintaining the reputation of your organisation. Making the process easier for customer to submit their documents is key. Many people like to snap an image of their W-2s, payroll, bank statements, and ID. But manually entering these data points into a LOS is slow, tedious and prone to errors. Typical capture technology like OCR (Optical Character Recognition) won’t be able to extract data from these images, but using a cognitive automation solution means you can recognise and classify these images, and also extract the required data points into a loan application. This can drive the straight-through processing of loan applications and cut your manual efforts by 95%.
2. Improving Profitability and Efficiency:
Implementing process automation is critical for efficiency. Many mortgage companies eagerly look for a quick fix like RPA (Robotic Process Automation). But although RPA will help automate tasks, such as extracting information from third-party websites and portals, it’s simply not enough to create the end-to-end process automation that is needed. Think of RPA as the “hand” work of a process, moving data from one place to another or checking it. For straight-through process automation, AI (Artificial Intelligence), found in cognitive automation, is needed. It’s the “head” work, the technology that learns your processes and can address issues and fix them. By combining cognitive machine reading (CMR) and RPA you can build a process that not only “acts” but also “thinks”. Your staff will appreciate the fact that their ‘copy and paste’ skills will be a thing of the past.
Related Content: 3 Roadblocks.to Fully Scalable Intelligent Automation
3. Process Visibility and Reporting:
One of the key benefits of having straight-through processing, or process automation, is the visibility and insights gained. You’ll have insight into the process–what’s working, what’s not. In addition, you’ll be able to discover other areas for process improvement and mitigate compliance issues. Your staff will benefit from areas of opportunity to improve.
Purchasing various point solutions, such as RPA or OCR, can only offer incremental levels of automation, But if you are looking for process automation that achieves real STP for mortgages, an integrated automation platform (IAP) provides all the benefits and functionality you need.
If you want to see how an IAP can provide STP for your company? Click here to schedule a custom demo.