Lending DocAI: Google’s Latest Tool & Its Impact On The Mortgage Industry
When Google decides to unveil a new product, you know that the entire tech world is listening.
At the beginning of the week, Google Cloud announced the launch of Lending DocAI, a tool dedicated to speeding up the KYC process when applying for a mortgage and/or a loan.
Using intricate machine learning algorithms to automate document review and data extraction, the tool aims to offer businesses a faster route to turning prospective leads to paying customers.
While this breed of technology might sound new to most, it is worth mentioning that this the continuation of project Document AI – Google Cloud’s more general version of a tool for applying optical character reader (OCR) over documentation.
“Our goal is to give you the right tools to help borrowers and lenders have a better experience and to close mortgage loans in shorter time frames, benefiting all parties involved,” writes Google product manager Sudheera Vanguri. “With Lending DocAI, you will reduce mortgage processing time and costs, streamline data capture, and support regulatory and compliance requirements.”
Google has had a turn in the way they construct and market their tools. Back in February, Google Cloud CEO Thomas Kurian foreshadowed the development of industry-specific solutions that harness AI in order to allow the company to “sell not just to IT but to business owners.”
Loans & Mortgages: How AI Is Revolutionizing An Entire Industry
Google’s tool release sheds light in an industry that has played second fiddle in the fintech/AI revolution that has been unfolding right in front of our very eyes.
Verticals and industries such as banking, finance, insurance and crypto have been stealing the spotlight and making headlines when in reality, the entire business world is going through an overhaul.
Pre-AI, the loans and mortgage industry was one of the most stale and hard-to-navigate industries known to man. From a consumer standpoint, getting a loan was notoriously slow and complex.
The lengthy application process coupled with the bureaucracy involved, created an emotionally charged relationship between provider and consumer.
The introduction of AI is not only simplifying the process for the consumer but it’s finally giving the lending industry the modern facelift it so desperately needed.
The application process was not the only pain point addressed by AI. The entire architecture and thinking process behind a loan application was based on a flawed premise.
Let’s take credit scores for example. Credit scores were a rudimentary way of assessing a client’s suitability for a loan. They were based on someone’s credit history, essentially predicting if the person requesting the loan would be able to repay it.
Times change and so is the way people live their life. People spend a lot of time studying nowadays, which means they might reach their mid-20s without any real credit history to build a credit score. Does that mean you shut down such a big part of the market?
No. That means you work hard to reinvent the method you assess your potential customers with. Credit scores are obviously outdated and don’t take into consideration a lot of variables that define today’s society.
Enter artificial intelligence.
What artificial intelligence manages to achieve is to incorporate and assess non-numerical factors in an applicant’s creditworthiness evaluation. Numbers and their lack of are too one-dimensional. Nowadays, companies need insights, not scores in order to have a holistic view of their prospective clientele.
Machine learning algorithms are analyzing data such as consumer behaviour in other industries and social media activity. By doing so, they are able to form a customer profile that showcases their financial intentions and behaviour.
Lending institutions can therefore open the scope of their business operations and consider applicants that would have otherwise been denied early in the application process.
Google’s Lending DocAI Impact On The Lending Industry
The pandemic is responsible for accelerating the digital transformation of the lending and mortgage industry.
Product releases like Lending DocAI are only adding and legitimizing this transformation, showcasing that the change everyone was so eagerly anticipating is actually happening.
A modern, easy-to-navigate and consumer-friendly lending industry can become a cornerstone in people’s quest for financial independence and freedom. The outdated structure of the lending industry was holding people shackled. This new technology is the foundational piece for the microlending company of the future.
This new generation of companies will make lending services more accessible, more available and easier to interact with. This is the beginning of greater things to come. Stay tuned for more artificial intelligence updates because we most certainly will.