Automation Improves External Processes in Five Main Areas
Mortgage lenders are subject to many demands from outside sources, whether they’re defending themselves against fraud, complying with government regulations, or quickly scaling their business up to manage higher demand. While these demands are unavoidable for lenders, business process automation (BPA) can make those tasks easier through digitization.
External benefits for mortgage lenders include easier fraud prediction, better auditing, and improved compliance. When lenders take advantage of BPA, they can improve many of these outward-facing processes in the following areas.
Faster and More Accurate Auditing
Digitized data means information stays more organized and accurate for all customers, making both internal and external audits less stressful and easier to conduct. In fact, BPA can make it so simple to conduct an internal audit that they are often performed more frequently, helping to ensure lenders pass periodic external audits with flying colors.
Better Compliance with Regulations
Maintaining complete compliance to regulatory demands is difficult but expected of mortgage lenders. These demands are often complicated and may involve risks. Since BPA regulates processes and reduces operational risks overall, it can make it easier to not only comply with regulations but to document data clearly and completely.
Predicting Fraud
Fraud is expensive. With mortgage fraud rising, it’s necessary for lenders to accurately detect suspicious activity. Automation, artificial intelligence, machine learning, and predictive analytics can calculate the risk related to a certain transaction based on the loan and the borrower. Because of the automated processes, it’s easy to track loan types that require greater attention to prevent fraud issues and reduce losses.
Improved Revenue Prediction
BPA collects and analyzes information, allowing lenders to accurately predict revenue over short and long time periods. A complete understanding of a business’ revenue is crucial to making good long-term decisions, as well as adjusting to government regulations and adapting to diverse customer demands.
Increased Scalability
When lending processes were primarily paper-based, scalability was a big problem. However, scalability becomes much easier when a business takes advantage of automation. With accurate, organized data and cloud-based platforms, mortgage lenders can scale their businesses up or down as needed to manage fluctuating customer demand.