How Mortgage Companies are Achieving Digital Transformation Using AI

How Mortgage Companies Are Achieving Digital Transformation Using AI

For many, owning a home is one of life’s greatest accomplishments, and home mortgages make that dream a reality.

Home mortgages remain the most significant financial transaction of most people’s lives. That is why mortgage companies need to be there for their clients every step of the way — which is where artificial intelligence (AI) comes into play.

In 2020, the mortgage industry was on fire because of the pandemic housing boom. Companies that were not already transforming to AI-driven platforms quickly saw why they should. From reducing manual tasks to ensuring a more personalized customer experience, AI offers immense value for those in the mortgage industry.

The importance of mortgage customer satisfaction.

McKinsey surveyed over 1,200 residential mortgage customers to better understand their experiences. Only 42% to 67% of borrowers say they are satisfied with the mortgage process. Interestingly, most customers said an “exceptional customer experience” was nearly as critical as getting the “best rate.” 

ΩFirst-time homebuyers said that hearing a lender deliver an incredible customer experience, either through online reviews or word of mouth, was the greatest factor in deciding who to choose as a lender.

It was also found that customers care the most about:

  • Reassurance: Customers want helpful and knowledgeable mortgage teams who provide guidance and support in decision-making.
  • Transparency: Customers want accurate information about pricing, the steps they need to take, and the status of their application.
  • Simplicity: Customers want straightforward documentation and guidelines.
  • Speed: Customers expect instant support and a quick timeline overall.

This means that prioritizing the customer experience can be a differentiator, without having to sacrifice rates and profit margins. Customer experience goes a long way, and AI can support that shift.

Read more: The Most Successful Use Cases for AI in the Mortgage Industry.

The role of AI in the mortgage industry.

According to a recent survey of 200 executives from the U.S. mortgage industry, over half agree AI is revolutionizing critical processes. This means that those who are not implementing AI technology risk being left behind. After all, 55% of these executives believe AI will make their organization, and the overall industry, more competitive.

Mortgage companies collect an immense amount of data—far too much for human teams to sift through to find trends. AI can break down the information stored in databases to provide critical insight and ongoing support.

Not only does AI technology help reduce operating costs, but it also improves the customer experience, supporting the ongoing reputation of a growing company.

Learn more about how to close more loans, faster, and at a lower cost.

Some of the ways mortgage companies are using AI include:

  • AI-driven conversations that allow companies to improve the customer experience and capture leads
  • 24-hour automated support for borrowers, sellers, and employees
  • Instant access to the latest guidelines so that teams can remain knowledgeable and ahead of the competition
  • Workflow automation for all aspects of loan fulfillment and servicing

How mortgage companies are achieving digital transformation using AI.

For many mortgage companies, the goal is to streamline the lending process while answering borrowers’ questions. To do this, companies are leveraging tools that provide instant access to answers to employees. AI bots instantly offer loan information to mortgage teams, and the more the technology is used, the better it becomes at answering questions.

Chatbots are also being implemented to showcase who a brand is while providing customers with immediate gratification. Personas allow companies to create an identity so that they can stand out in a crowded market. By answering critical questions, these personas also allow mortgage companies to scale. That is because many of the questions asked in the mortgage industry are redundant. When dealing with thousands of users, the same questions are often asked multiple times a day.

Whether borrowers seek immediate retrieval of product guidelines and regulations or would like their questions answered, platforms such as Capacity, make this transition a breeze. For example, while working with West Community Credit Union, Capacity correctly and instantly answered 92% of all borrower questions with no human intervention. Taking these steps will lead to immense operational savings while supporting a company’s reputation.

Capacity is the AI-powered support automation platform your mortgage company has been looking for.

At Capacity, “we help teams do their best work.”

If you’re tired of repetitive tasks, answering the same common questions, and navigating multiple systems, Capacity can help. Offering an AI-powered support automation platform that connects your entire stack, we build solutions to tackle any business challenge.

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