The Ask from a New Age Lender

The ask from a new age lender

Given record inflation, rising interest rates, and an impending recession, most lenders are feeling more severe cost pressures than ever before. Applying for a mortgage is one of the most complicated processes most homeowners will ever go through. And it’s not exactly a cakewalk for the lenders, either.

One of the many positive changes that have been embraced by lenders over the years is digitization, where piles of paperwork which have conventionally filled desks and cabinets are now stored digitally which enables the signing of documents electronically without leaving the comfort and safety of home. Optical Character Recognition (OCR) and its ability to convert paper-based documents into electronic ones is not a new technology, but many lenders today are unaware of how AI technologies could digitize unstructured data into indexed data, thus saving them significant overhead.

This swift wave of transformation, transitioning organizations from “Non-AI” to “All-AI,” has also made an impact on the AI in mortgage industry

Successfully processing each application involves analyzing a lot of documents and data points to assess financial risk and calculate a borrower’s ability to repay the loan. A borrower’s profile is constantly changing and with the inevitable onset of new age, tech savvy borrowers, near instantaneous approvals for their applications will soon become a reality. But according to recent research, it usually takes legacy lenders an average of 53 days to manually process a mortgage, from application submission to loan disbursement.

Lenders today to can leverage new-age technologies to massively cut down cycle times. Leading the way is AI enriched optical character recognition (OCR), which can not only read any type of document but also extract the information into usable electronic data, quicker and with higher accuracy than humans. Top it off with a pre-defined rules engine to validate the extracted data against lending principles and guidelines, and you have the perfect recipe to deliver a best-in-class borrower experience with straight through processing.

Digilytics’ RevEL platform has perfected that recipe to work in conjunction with several other automation solutions, such as robotic process automation (RPA) and transactional systems such as loan origination system (LOS) & point of sales system (POS) to automate repetitive non-valued added human tasks and mimic the ways humans understand information and make decisions.

Our platform covers most of the commonly occurring documents used across the lending process with a special focus on affordability documents. Platform augments human in the loop learning (HITL) with specialized lending focused deep learning models to ensure bank grade accuracy for document indexing, data extraction and documents validation. Our one-shot learning models and explainable AI reports perfectly combine for the technology to pick up new documents and track the accuracy of existing documents with minimum human input thus ensuring easier adoption.

AI in mortgage industry for lenders is becoming a competitive advantage to streamline their application processes and speed up approval times. Intelligent automation will be essential to fuel future growth and ensure a seamless user experience for the new age borrowers willing to climb the property ladder. If you are inquisitive to know more about how Digilytics AI can help make the journey smoother with smart technical interventions, reach out and contact us at

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Author: Nalin Suri, Global Head – Pre Sales & Principal Product Manager