What’s AI got to do with it? The strategic impact of AI in indirect lending
The auto buying experience has certainly changed over the years. Remember when we received credit applications over fax machines, and a quick credit decision was a few hours or even a few days? Overnight funding packages were the norm, and paper checks exchanged hands. You can likely remember the sounds of the fax machine right now. Technology has come a long way, and it continues to change our workflows and add efficiencies that we never expected.
Credit unions are at the center of this shift as they find ways to embrace lending solutions powered by artificial intelligence (AI). At the forefront of this is Document Processing Automation (DPA), a new tool leveraging AI and machine learning to radically streamline credit union lending operations. Its added benefits are bringing lending workflows into the next generation of financial technology, offering much-needed efficiency.
The AI efficiency advantage
This is the time of virtual shopping, digital purchases, and self-driving cars. Buyers expect immediate responses with short wait times, and that includes financing. In the quest for operational efficiency, credit unions are turning to AI as a strategic ally. Believe it or not, traditional manual processes still sit in prolonged loan origination timelines, causing frustration among members expecting swift decisions. DPA eliminates this friction by automating the classification, analysis, and extraction of data from the vast number of loan documents, ranging from pay stubs and W-2s to financial records and insurance policies. The accelerated loan processing capabilities of DPA translate into a substantial reduction of processing time. What used to take days can now be accomplished in a fraction of that time, meeting member expectations promptly and reinforcing credit unions’ commitment to exceptional service. This streamlined approach enhances efficiency and positions credit unions as responsive and member-focused.
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