loan underwriting system

The use of AI and Cognitive Process Automation (CPA) has uplifted the level of automation. Robotic Process Automation (RPA) has saved a lot of money and improved efficiency. AI-powered bots, which are also called “Digital Coworkers,” do many boring and repetitive tasks related to risk rating.

Today’s automated loan underwriting system is very different from the one that was used before the turn of the century. This solution has a lot of benefits, but carriers often have concerns about it.

Benefits of computerized systems for underwriting

Quicker service

In business, time is often of the essence, but when introducing new technology, you need to balance speed with accuracy. This means that your Digital Coworker needs to be as fast and accurate as possible without sacrificing speed or efficiency. Taking the most conservative view, the straight-through processing rate for CPA is more than 95%. Considering that humans make between 10% and 30% of mistakes, it is safe to say that the benefits are huge.

In the past, many RPAs were made for specific tasks, but they didn’t connect too much. A Commercial Loan Underwriter with built-in AI can manage the underwriting process from application to delivery and everything in between. In the past, many of the most boring and repetitive tasks were given to third parties in other countries. This option might have been cheaper, but it didn’t improve efficiency much and giving third parties access to client data could have been risky.

More involved workers

There’s no doubt that challenging and rewarding work makes employees more proactive. So, when their job involves repetitive tasks that don’t require much thought, it’s easy for them to lose interest. Gallup found in a recent poll that a shocking 48% of working Americans were actively looking for other jobs. These are employees who are either not interested in or no longer interested in what they do at work.

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Employees can be put to use in other ways that help them reach their full potential and add more value to the company. When you do the same thing over and over, it’s hard to move up in your career. Also, employees who aren’t engaged or aren’t happy at work are more likely to be tempted to leave for greener pastures. Even just the extra cost of hiring new people can have a big effect on a business’s bottom line.

New business and renewals were easier

Many businesses seem to be more interested in getting new customers than in keeping the ones they already have. In the insurance industry, keeping customers is hard, but they are the company’s lifeblood.

When cognitive automation takes care of the boring, time-consuming work, it gives people more time to connect with each other and build relationships, teach policyholders about new products, and cross-sell other lines of business.

Pay more attention to new areas of business

There are many benefits as employees have the chance to switch from boring, repetitive tasks to more active and interesting ones. First, it lets financial companies improve their services to customers, which customers want, and be more proactive about new business opportunities.

If employees were rewarded for being proactive, they would be more motivated to solve difficult problems that would help the business as a whole. This could be a business partnership, an agreement with a third party, or a new line of business with complex enterprise risks. Over time, digital coworkers could also be used to automate parts of these tasks. This will make the business more efficient, save money, and make it more profitable.

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Automated loan underwriting systems are a great need for today’s bankers. Without it, it is hard for financial institutions to compete in the dynamic environment. 

Pros of Using Automated Loan Underwriting System

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