We have been hearing a lot about artificial
intelligence (AI) and its tremendous impact on health care, financial services,
transportation, retail, energy and many other industries. The promise and
possibilities of AI are extraordinary – from the ability to diagnose diseases
to the development of driverless cars.
On a daily basis, most of us are already experiencing
AI-powered technology. AI makes it possible for us to chat with customer-service
bots, talk to Apple’s Siri and navigate our commute using a traffic app, for
example. But despite all the recent buzz about AI, the technology is not new: AI
has been used in countless ways for decades, such as flying commercial jets on
autopilot and indexing internet web pages via bots.
When applied to certain industries in particular
– such as manufacturing – AI and machine
learning have the potential to drive incredible efficiencies and workflow
optimization. And now, Black Knight is bringing this technology to the mortgage
industry. With loan origination costs hitting new
highs, and net profits declining for lenders, this is certainly a welcome
development for our clients.
A Virtual Assistant for Lenders
Black Knight is already leveraging this advanced technology to
help mortgage lenders address two of the biggest challenges they face today:
cycle times and origination costs. Last year, Black Knight introduced AIVA – an AI virtual assistant for lenders. Powered by machine
learning, AIVA performs manual, repetitive tasks at scale to help expedite turn-times – which
leads to reduced operational costs.
AIVA mimics cognitive thinking to read, comprehend and draw
conclusions. “She” is able to remember patterns within data the same way humans
recall what they have learned on the job. For example, the AIVA Compile Loan
Skill can review forms, such as W-2s, asset statements, paystubs and tax
returns, and then use the knowledge she has gained to anticipate the type of
information that should be in each field of the next form she reviews. As a
result, once trained with a client, she is able to pre-evaluate these forms at
scale, and even identify any missing data and other anomalies.
The Power to Elevate Your Operations
Additionally, AIVA’s Compile Loan Skill contains another key
capability that helps reduce what is typically a very time-consuming, manual process.
Loan applications contain hundreds of data points from various document types,
including PDFs, screenshots, TIFFs, etc. Mortgage professionals are tasked with
reading, comprehending and sorting through this wealth of information under
tight deadlines. With the Compile Loan skill, AIVA reviews an applicant’s documents,
identifies the key data points and then classifies the documents into a
complete, indexed file – all within a few minutes.
By performing error-prone, manual tasks, AIVA enables employees
to focus on projects with greater strategic value, such as addressing
exceptions and solving problems, which results in improved transaction turn
times as well as reduced risk. Additionally, as AIVA helps accelerate and
streamline processes, lenders benefit from reduced expenses.
Skills can also help enhance the consumer experience during the loan
application process. As a potential borrower uploads documents, such as
personal identification and bank statements, AIVA can quickly review the
information, identify unusual transactions, determine missing data and provide
near real-time feedback to the consumer. This significantly reduces
communication delays between the lender and loan applicant, accelerating the overall
Demonstrates AIVA’s Value to Lenders
MarketWise Advisors recently conducted an analysis of AIVA, evaluating
her “real-world” impact based on actual findings from a top 50 lender. The
analysis included a review of existing processes, a time and motion study and
Results from the study were compelling. Some of the key findings
The impact of using AIVA to
review and extract data from income, asset, insurance and other documents
decreased origination costs by up to $437 per loanWhile every lender’s situation
is unique, the case study indicated an average annual projected financial impact
of $3.13M as a direct result of AIVAA top 50 lender using a
specific set of AIVA skills could redirect up to 53,000 man hours to focus on
other priorities during the first year; that number increases to 108,000 hours
by year fiveThe
projected average annual return on investment for the lender in the study was
483%, meaning that for every dollar invested in AIVA,
the expected financial impact is a return of $4.83, which is expected to increase
exponentially as AIVA’s skills evolve to incorporate more complex tasksAIVA can
produce significant indirect impacts, including reduced error rates and
increased loan quality, consistency and compliance
The full report, “Artificial Intelligence – Next Frontier for
Mortgage Technology,” is available here.
Artificial intelligence and machine learning are
the future of delivering enhanced productivity tools and capabilities to lenders.
As AIVA continuously builds her skillset, she can help lenders manage larger
volumes of loans and further drive down origination costs. Black Knight is excited
about this groundbreaking technology and how it is helping lenders address
their most vexing problems – turn times and costs.
Black Knight (NYSE:BKI) is a
leading provider of integrated software, data and analytics solutions that
facilitate and automate many of the business processes across the homeownership
life cycle. As a leading fintech, Black Knight is committed to being a premier
business partner that clients rely on to achieve their strategic goals,
realize greater success and better serve their customers by delivering
best-in-class software, services and insights with a relentless commitment to
excellence, innovation, integrity and leadership. For more information on AIVA,
please visit www.WhoisAIVA.com.