Loan underwriting is tricky. Everyone has unique financial circumstances, and there’s no way you can be 100% certain that someone will pay back a loan. Today we are seeing a new generation of borrowers, customers with no credit history, and a large digital footprint. The traditional policy-driven rules-based manual underwriting that has worked so far is failing to accurately assess these first-time borrowers. Moreover, as the number of data sets are increasing, maintaining these policies is posing new challenges for financial institutions.
So, how can Lenders overcome this?
There is one concept that is worth striving for – Automated Underwriting!
AI-driven underwriting is the concept of using AI/ML technologies and new data sources to achieve greater agility and efficiency by automating time-consuming, error-prone manual tasks and repetitive administrative functions.
It is high time for Lenders to understand the need to transform their loan underwriting process and adopt an AI-driven model to innovate and stay ahead of the curve.
Decide and take the next step
