Automating underwriting can increase turnaround time exponentially, pushing the needle from weeks or months to a few days.
But do you wonder what robotics & automation have to do with securing a loan? According to recent developments in tech-driven underwriting. The current pandemic exposed painful inefficiency of underwriting loans processes, financial organizations & companies turning to automation to move things.
Here’s how RPA assists Traditional Loan Underwriting:
Smooth Banking during a crisis
With the turnaround time of receiving credit taking longer, businesses desperately need it due to crises arising due to pandemics. It’s a terrible situation for the economy where a small loan could make a difference. The problem is heavy reliance on manual processes making the situation complex and unsustainable.
Automating underwriting increases turnaround time exponentially. This can bring much-needed funds into the hands of individuals & businesses requiring it without sacrificing the underwriting quality, which is essential for financial institutions to be sustainable.
Resolve Complexity of Federal Loans
There are many federal opportunities for loans, but these options come with their setbacks, data points, methodologies, and a lot of paperwork. Training humans for these complexities is time-consuming, but AI can catch on to the mundane, rote pieces of underwriting, leaving humans ideal for higher-order tasks.
Robotic Process Automation (RPA) facilitates the loan process from end to end, removing human intervention and reducing errors due to factual inaccuracy. RPA-powered software can help individual information from multiple sources and systems and create a complete picture of an individual or organization’s loan worthiness to combat the glut of data.
RPA also assists government organizations in responding to queries more quickly due to natural language processing & the evolution of chatbots.
Implementing RPA for sustainable loan processing
Using automation helps cut down human errors, fast-track processes without sacrificing accuracy & provide valuable communications between loan applicants & loan providers. It’s a transforming way to think about credit & how we respond to a future economic crisis.
Explore the New Age Career in CRU with Imarticus Learning:
Get an in-depth understanding of dynamic banking & non-banking financial corporations (NBFC) loan markets with the Credit Risk and Underwriting Prodegree from Imarticus Learning.
For those who wonder what after B.Com, this program lets you acquire tools that help you understand India’s credit landscape, get some diligence, conduct financial analysis, and learn the entire loan assessment process.
The students get a hands-on learning experience as you explore five comprehensive case studies. These case studies are linked to a different aspect of the curriculum, providing you with an opportunity to apply skills and gain an in-depth understanding of how credit risks & underwriting works.
After completing the course, you’ll be rewarded with an industry-recognized Certificate of Excellence in credit risk and underwriting. The Certification represents the skills and knowledge students have imbibed during the course and can be used to boost the portfolio and resume.
If you’re looking to explore careers after graduation and heading for employment opportunities in the BFSI sector, take some time off to pursue a risk management degree or earn a globally accepted credit analyst certification. Designed to enhance business and analytical skills and provide an overview of the Banking, NBFC, and Credit spheres, this course is turbo-charged to help you meet and exceed employer expectations.