Insuranceciooutlook

AI and ML are Changing the Underwriting Process

By Insurance CIO Outlook | Tuesday, August 06, 2019

AI and ML The integration of AI and ML has enabled banking organizations to automate their conventional processes and facilitate better customer engagement.

FREMONT, CA – Artificial intelligence (AI) and machine learning (ML) have infiltrated multiple industries, and the banking and finance sector is not far behind. The adoption of emerging technologies has enabled fintech organizations to enhance their scalability and versatility. One of the best use cases for AI is in the underwriting process for loans.

Several banks and fintech organizations are investing in the development of AI-powered systems. The new banking business models include the digitalization of customer processes, including account opening and closing. It eliminates paperwork and form filling, thus reducing the time spent by customers on particular procedures. It not only offers better visibility but also gives customers more control over their transactions. The ML technology also provides excellent prospects for fraud management.

Banking organizations are increasingly utilizing AI tools for customer targeting and tracking trends for better marketing strategies. It has enabled them to classify products based on their category. The conventional processes are being automated through AI, ML, and robotic process automation (RPA). However, intelligent automation offers a new set of opportunities. It has enabled banking organizations to facilitate voice-based intelligent interfaces and enhance customer interaction. The data crunching is done by AI tools, which also provide insights regarding customer acquisition.

The incorporation of AI has dramatically enhanced the loan underwriting process, leveraging big data, and internet data to draw actionable insights and drive better decision making. AI-assisted systems have streamlined the loan underwriting by utilizing additional data sources and technologies.

By leveraging the AI-supplied data, organizations can eliminate misperceptions by underwriters. Also, by using the unstructured data, the AI systems have introduced speed and simplicity into the process. However, organizations need to ensure that customer experience (CX) is at the focus of intelligent automation.

The focus on CX will enable organizations to offer maximum customer engagement by speeding up the data review process. The lending process has been transformed by AI and ML, as it has enabled fintech companies to cut costs, automate processes, and shorten the approvals. As technology develops, the organizations will steadily digitalize their traditional operations, facilitating greater efficiency and customer engagement.

Source: https://www.bbntimes.com/en/technology/biggest-use-case-of-artificial-intelligence-and-machine-learning-tools-is-in-underwriting-process-of-loans

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