Your loan processing costs may be higher than necessary.
Australia's loan market generates about $1.7 trillion in turnover per year. While mortgage loans are the largest sources of revenue in banking, they often have the highest overhead costs.
Mortgage loan processing costs are largely due to manual work, poor document filing, costly storage and human error. Automating even a single stage of your loan application process can increase processing speed and accuracy, enable easy document visibility and retrieval, and improve customer experience.
Computershare Communication Service's GM Client Services, Kathy Rojo, shares three signs with banking leaders that their loan processing costs may be higher than necessary.
Addressing just one of these signs through automation can have a positive impact on your bottom line, through operational efficiency and risk mitigation, which in turn helps improve overall customer satisfaction.
- Kathy Rojo, GM Client Services
Does your home and personal loan application process have any of the three signs?
1. Extended loan application processing times due to manual steps and errors
“Australian banks can have many manual steps in their loan application processing. When you imagine all the touch points for possible human error, the risk profile of errors is high,” Kathy says.
Implementing a secure loan processing software platform, with business rules built to flag documents and emails that need to be reviewed by a subject matter expert, reduces this risk. These can be integrated with third party vendors, for example for ID verification, and client platforms.
Solution: Automated workflow tools optimise processing efficiency, are easy to use, and produce outcomes that are both accurate and align with service level agreements.
2. Individual documents are poorly organised, difficult to locate, and expensive to store
Employees searching and locating documents can have significant costs long-term. There may be limited visibility for all departments to access and view document status. Secure storage of personal documents to support mortgage and personal loan applications can be a costly exercise for banks.
Solution: “Our proprietary autoclassification software eliminates the need for manual identification of documents prior to OCR (Optical Character Recognition) data extraction,” Kathy says.
“We use a digital mailroom to manage the receipt of incoming paper or electronic information. It automatically classifies, captures and provides data and image output to a centralised enterprise content management and workflow platform,” she says.
Automating document storage, with searchable PDF documents, enables keyword searches to assess current and historical applications based on known and newly legislated risks.
Computershare's stages of loan application processing that can be automated for operational efficiency, speed and accuracy
It automatically classifies, captures and provides data and image output to a centralised enterprise content management and workflow platform.
3. Higher than average loan application processing cost
Every stage of processing loans contributes to overall cost. Improved workforce planning has a demonstrated cost reduction when processing applications on a like-for-like basis.
“Streamlining and automating individual stages of operations to reduce overall costs is where we really deliver value for our business partners,” Kathy says.
“Our loan application solution can also create and deliver customer communications to keep the customer informed throughout the process and notify them of any actions required to complete the loan application, such as identifying any missing application documents,” she says.
Solution: Automation can enable same-day approvals with data capture (pending required property valuation) to improve customer experience.
Investing in a reliable loan automation system enables transition to digitisation of the loan application process, preparing banks for the future of robotics and artificial intelligence (AI).
“Australian banking leaders who invest in automated software platforms will gain a competitive advantage into the future,” Kathy says.
“Automation can deliver significant value in terms of operational efficiencies, risk compliance and customer satisfaction, and the time to invest is now”.