Accelerating Consumer Relevance in Mortgages

Overview

Market share and profitability for mortgage firms are deeply affected by rapidly evolving customer expectations, increasing regulatory complexity and competition from nimble challengers that use technology and analytics to race ahead. Customer expectations following digital disruption have already outpaced existing processes used by mortgage lenders. Meanwhile, new agile players are leveraging the power of analytics and AI with flexible technology to demonstrate higher relevance and gain greater market share.

Infosys empowers lenders to accelerate consumer relevance in the mortgage business by reimagining loan origination and transforming mortgage servicing. We help them modernize and accelerate these processes while delivering a seamless and omni-channel experience for end customers. Our proprietary solutions across artificial intelligence (AI), intelligent automation and advanced data analytics provide complete business process digitization. Moreover, we leverage deep industry knowledge to ensure compliance, reduce cost and improve operational efficiencies.

Accelerating Consumer Relevance in Mortgages

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To compete in these times, firms must focus on key imperatives like:

  • Providing dynamic E2E digital platforms that streamline customer journeys from search-and-shop till closing. This also caters to 15% of the millennial consumers who prefer online E2E mortgage origination processes
  • Mining the potential of advanced analytics to improve revenue growth, customer experience and costs
  • Deploying a suite of approaches for process optimization, automation and AI to increase profitability

A front-to-back transformation in mortgage requires optimization and intervention across complex process and technology ecosystems. This should aim to create capable platforms that drive faster and efficient application processing and delightful customer experience. Infosys helps firms create and operate such next-gen platforms to reimagine and transform the mortgage value chain. We have helped clients reduce the origination cycle time by up to 50% and operational expenditure by up to 30%.

Adopting our sophisticated technologies and solutions gives you the power to:

  • Compete with disruptive FinTech and non-bank players that have grown from 8% to 32% in the past 6 years
  • Increase the customer base by up to 20% through alternative credit scoring systems
  • Delight customers by faster loan approvals in half the time
  • Optimize loan processing time despite increasing application volume
  • Reduce the loan processing time by nearly 20% and lower default rates by about 25%
Accelerating Consumer Relevance in Mortgages
Reimagine loan origination

Reimagine loan origination

  • Omni-channel customer engagement
  • Seamless third-party integration
  • Smart decisioning workflows
Transform mortgage servicing

Transform mortgage servicing

  • Predictive analytics
  • AI-based loan loss mitigation
  • Self-servicing options
  • 360-degree customer view
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Challenges & Solutions

E2E digital platform

  • Simple, frictionless, digital, and intuitive application processes with omni-channel consistency
  • Drastic reduction in customer document requirements and pre-filling applications by leveraging the full range of internal bank data (like deposit systems) and external APIs
  • Robo-advisors to identify the right product
  • Self-service tools and channels, instead of customer contact centers, to resolve issues/queries
  • Automated customer alerts for status changes and document reminders
  • e-Notary, e-Disclosures, e-Signature, and e-Closing capabilities
  • Cognitive optical character recognition (OCR) for automatic analysis of income statements, missing information and task routing
  • Natural language processing to extract data from documents and use in-data processing

Process optimization and automation

  • Seamless integration of straight through processing (STP) with third party services like appraisals, income and employment verification
  • Smart workflows to support business and operational needs
  • Optimized verification process for faster underwriting
  • Automated anomaly detection through AI/ML early on in the underwriting process
  • AI-based pre-emptive treatment and effective collection strategies
  • Voice analytics to track the performance of outbound calls
  • Implement robotic process automation (RPA) to optimize operations, eliminate duplication and automate manual activities
  • Cognitive OCR and automated business rules for document validation for loan modification and liquidation
  • Dispatch of foreclosure proceedings and qualified loans to attorney through STP

Advanced analytics

  • ML modelling helps effectively segment borrowers, differentiate between engaged versus unengaged borrowers and assign separate queues for late-stage borrowers, thereby optimizing outreach
  • Customer data insights help deliver personalized content
  • Predictive analytics auto-detects probable loan default cases and applies the right collection strategy early on
  • Predict borrower prepayment risk
  • Mining of customer feedback (CSAT, NPS and complaints) helps identify common customer and process pain points to target dissatisfied customers who are at risk of dropping out
  • Detailed breakdown of multi-channel customer journeys to identify the key sources of leakage across the E2E journey (search to visit, visit to app start, app start to app complete) and prioritize opportunities for conversion and cross-sell
  • Strengthen risk models and scoring methodologies using a broad ecosystem of internal and external data sources (like social media) to increase the accuracy and speed of underwriting and risk scoring models
  • Analytics to optimize marketing mix across channels and reduce overall customer acquisition and lead generation costs
  • Mining servicing book helps identify potential re-finance candidates
  • Proactive identification of files that are at risk of violating compliance/regulations (like Reg B, Reg Z, TRID)

Shift from cross-selling to cross-buying

Create new strategies for non-intrusive, pull-based approaches that attract customers into long-lasting and multi-product relationships

Rapid technology adoption

Infosys helps lenders rapidly deploy next-gen technologies to become mobile and agile with:

  • Cloud infrastructure that streamlines product development by enabling developers to simply focus on building, testing and deploying applications without concerns about infrastructure demands
  • Innovative online financing platforms that are more user friendly and enable transparent, one-stop shopping through agile delivery models
  • Digital ecosystems that support integrated solutions along the entire value chain with the help of APIs, microservices and AI

Derive actionable insights

Infosys helps banks reduce errors in loan administration, payments and cashiering processes by:

  • Leveraging AI to drive preemptive data treatment and effective collection strategies
  • Deploying predictive analytics to automatically detect and track loan default cases and leverage the right collection strategy early on
  • Using natural language processing to seamlessly extract data from documents for data processing