At Level 3 of loan automation, there is process automation for both borrowers and lenders through the use of an integrated digital platform. The platform now also provides underwriting and decision support such as a full underwriting assessment report generated by the system, but humans still make final decisions. Some banks are already using systems at this level of automation to handle gathering data from the applicant, completing the loan application forms, and gathering documentation.
Automated loan systems can also fulfil KYC and AML requirements, client onboarding, and documentation validation. These systems automatically extract data from documents or gather data from third-party systems, and hence all the data required for an application is automatically gathered, processed and validated.
In other words, information about all five the Cs of Credit can be gathered by such systems, but credit decisions are made manually. The loan officer still performs final checks and reviews and makes the ultimate decision, but their time isn’t allocated to administrative tasks. Rather, their expertise is applied at the decision-making level only, allowing them to be more productive.
Identify products that can be automated with little or no human intervention
Implement a digital lending platform and decisioning tool that will automate the end-to-end processes for the identified products