Artificial intelligence could “level the playing field” for loan approval turnaround times and loan administration, a corporate technology lawyer has predicted.
Nick Abrahams, global head of technology and innovation at law firm Norton Rose Fulbright explained to The Adviser that artificial intelligence will gather relevant data, analyse it, and deliver targeted, actionable insights to the broker on their existing client base.
As a result, brokers could write more loans, expand their brokerage, remain compliant, and provide “exceptional” customer service, the global futurist added.
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“Potentially, artificial intelligence when used by lenders should mean reduced loan approval times,” Mr Abrahams said.
“Technology will level the playing field for loan approval turnaround times and loan administration. Therefore, the critical differentiator for the adviser will be the customer relationship piece, especially trust and value-add.”
Mr Abrahams’ predictions have preceded his appearance at the upcoming 2022 Better Business Summit in Western Australia, where he will elaborate on how the new wave of digital transformation will impact the way in which brokers operate as business leaders and why digital transformation is essential to the future success of brokerages.
He will also unpack the role of humans in a digitised business and economy and provide the tools and knowledge on how to transform brokerage operations to leverage and integrate emerging technologies.
With brokerages set to be largely data-driven in the future, businesses that could benefit include those that use the data about their existing customer base to provide highly targeted solutions that “delight” their clients, according to Mr Abrahams.
Furthermore, he encouraged brokers to use data and CRM-style marketing tools to refine the lead generation process to significantly reduce the time spent “chasing” non-performing leads.
Noting that there are numerous technological tools currently available that brokers could use to evolve their businesses, Mr Abrahams recommended that brokers use tools that focus on lead generation, loan administration, and data analytics.
“I see artificial intelligence impacting the administration of loans,” he said.
“Generally speaking, the experience of artificial intelligence being adopted in sectors like these has been one of enhanced productivity and upskilling of the workforce rather than mass job displacements.”
Brokers could also expect their customer base to change as the Millennial generation is more financially savvy than the previous generations, largely due to the impact of cryptocurrencies, Mr Abrahams posited.
“According to a recent Swyftx survey, 42 per cent of millennials have owned or own crypto,” he said.
“Crypto and decentralised finance have created a strong expectation of simple, easy-to-use financial services.”
In addition, conversations have been growing louder around the ethical considerations of artificial intelligence.
There has been particular focus on identifying and eliminating racial, gender, and other forms of bias in machines, how machines affect our behaviour and interactions (for example with artificially intelligent bots), guarding against mistakes and avoiding unintended consequences (as machines are constantly learning), and buffering businesses against cyber-security threats.
“There are various ethical considerations for artificial intelligence but much work has been done to ensure that ethics are considered,” Mr Abrahams concluded.
Better Business Summit 2022 heads west
The Better Business Summit 2022 will continue on to Perth this week after successful stints in Brisbane, Sydney, and Adelaide.
Themed “Digital Broker”, a variety of speakers will provide brokers with the tools and knowledge to harness technology to increase efficiencies and succeed in their businesses.
The Better Business Summit 2022 will be held in the following locations:
- Perth, 19 May 2022 at Crown Towers
- Melbourne, 2 June 2022 at Crown Towers
Click here to buy tickets to the summit for $249 and make sure you don’t miss out!
To read all about the state of play in mortgage technology and the newest tech tools and trends in the market, pick up the April 2022 edition of The Adviser magazine.
[Related: Too late to beef up cyber security after attack, brokers told]
