Transform Lending Operations with Robotic Process Automation and Intelligent Document Automation

Robotic Process Automation (RPA) is a technology application that is used to automate business processes within digital systems.

Intelligent Document Automation (IDA) uses Optical Character Recognition (OCR) and Machine Learning (ML) technology to identify documents and extract information and insights from them.

Let’s see how these technologies can transform the operation in your lending business.

Loan Processing: A Long Journey

Lenders experience long and complex loan processing that involve many steps such as risk assessment, fraud control, and regulatory verifications.

The loan origination and underwriting journey is heavily dependent on multiple systems and 3rd party information providers.

Document processing is another major undertaking for loan officers during underwriting.

Most of these activities consist of repetitive tasks that are prone to human error and are time-consuming.

In a Moody’s Analytics Poll 56% of bankers say that their biggest challenge is the manual collection of data and back and forth with their clients.

While mortgage officers spend time completing these tasks, they lose the opportunity to focus on activities that would add more business value to the organization.

Digital Transformation in Lending

Today, lenders are streamlining their operational processes through automation and digital transformation.

In fact, lending digitization has become a major differentiating factor for competing organizations.

By using RPA technology, lenders can quickly accelerate their digital transformation and unlock value from other technology investments, according to Fabrizio Biscotti, research vice president at Gartner (2019).

Loan Document Automation with Kapti

An important element in an organization’s digital transformation journey is the use of loan automation tools to streamline the documentation process.

Intelligent document processing accelerates origination time and reduces processing costs by helping:

  • eliminate manual reviews,
  • perform deep data captures,
  • implement automatic cross-document validations,
  • execute verification with external sources, and
  • produce complete and accurate loan files

Automation software, such as Kapti, uses proprietary machine learning technology and optical character recognition (OCR) to significantly improve the entire loan document processing experience for lenders and borrowers, as seen below.

Figure 1: Kapti's automation flow, transforming documents to business insights.

Kapti differentiates itself by combining lending industry expertise with intelligent document processing.

It provides smooth, automated workflows for loan document collection and digitization.

Kapti additionally performs deep loan document analyses to create business intelligence reports through:

  • cross-document checks for identity, employment, and income documentation,
  • automated status alerts, and
  • flagging potential fraudulent content

Kapti’s ability to be leveraged across the lending spectrum by combining with RPA makes it a valuable automation tool for organizations interested in improving their lending processes.

RPA for System Integration in Loan Origination Process

In the lending industry, the loan origination process may involve using many disjointed tools.

Integrating these systems through Application Programming Interfaces (API) might not be the first option.

API integration with legacy book of record systems might not be feasible as these solutions were not build with an open integration in mind.

RPA is a non-intrusive technology to bring them all systems together.

RPA leverages an organization’s existing infrastructure without disrupting their IT systems.

It is also a highly scalable technology that can easily adapt to changing business environments.

By acting as the platform for a financial institution’s suite of automation tools, RPA can quickly integrate their core banking legacy systems with underwriting and loan origination systems.

This results in a simplified end-to-end process where organizations can read borrower data, create new loans, and update loan status and underwriting results on their core banking system.

Where do you start your RPA journey?

After recognizing the value of RPA-based solutions and intelligent document automation for financial institutions,, the next step is finding out how you can get started.

Here are four steps to consider before stating your journey:

1- Identify Repeatable, High-Volume Processes

RPA can make a huge difference to routine manual processes. These tasks that are simple to execute but have a meaningful volume, can produce the quickest ROI results.

2- Review Current Organization Environment

A financial institution is ready to implement RPA when it has a stable existing infrastructure. This enables RPA technology to improve the quality and efficiency of current processes.

3- Consider Nontangible Benefits

When vetting RPA opportunities, there are nontangible benefits that can drive significant value to the organization, such as: quality, customer experience, and employee morale.

4- Combine RPA with AI-based Software

RPA-based automation can be used in parallel with existing tools and services with suitable price points. Software that uses Artificial Intelligence (AI), such as Kapti, have specialized functionalities to improve mortgage loan operations and can be used in conjunction with RPA to maximize ROI.

 

About Kapti 

Kapti is an automation software for document capture and processing. With Kapti, you can intelligently classify, extract, analyze, and deliver critical data from documents. Kapti uses proprietary Machine Learning (ML) technology to intelligently generate insights from documents and enable decision making workflow automation. For detail information about Kapti please visit Kapti.io

 

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