Like many sectors, the finance and mortgage industries are undergoing a significant transformation due to the uptake of artificial intelligence (AI).
AI is helping Australian consumers safely interact with their financial data in real-time and access innovative services. The tool is also assisting brokers optimise their work, allowing them to focus on what’s important instead of admin tasks and time-consuming repetitive chores. AI is not a blip or a trend; rather, it is another example of the ramping up of the tech-driven revolution.
Here are some of the ways technology is helping brokers – and consumers – exchange information quickly, seamlessly and securely.
AI is your friend, not foe
Those in the know understand that companies need to have a plan regarding learning about and implementing new technologies. Nick Aronson, VP APAC country management at fin tech firm FIS, said companies need to adapt now to how AI will revolutionise workplaces and beyond.
“Brokers should find ways to incorporate AI tools into their work through investing in this technology or identifying a strong technology partner,” he says.
“The right technology aids brokers in their ability to quickly adapt to the ever-evolving mortgage landscape and manage this increasing workload.”
AI-driven algorithms enable quick and accurate credit decisions, allowing lenders to process applications faster while reducing the likelihood of human error.
How technology is helping Australian consumers and businesses
While not strictly an example of AI, Open Banking is often used alongside AI to create efficiencies and improvements for brokers and their customers.
Take up of Open Banking is slow but steady: between October 2022 and March 2024, Open Banking experienced a 30 per cent growth rate. A recent survey shows that even though many Australian consumers may not be aware of the term ‘Open Banking’ they want the efficiencies and improvements it brings. In the UK, in the six months to June 2023, more than 1 in 9 British consumers actively used Open Banking, a 7% increase from December 2021.
The Hound platform uses Open Banking to automate income verification by directly accessing a client’s product and interest rate information, reducing wait times and streamlining the loan application process for brokers and their customers.
Open Banking is still in its infancy and but feedback shows that it is an area full of potential with much growth to come in. In fact, a new whitepaper believes Open Banking will be the major driver of the Australian digital economy and future.
The AI advantage
Integrating AI with open banking data can help create tailored financial products and services that best suit a customer’s financial situation and goals.
AI algorithms can process vast amounts of financial data to identify patterns and trends, offering consumers and businesses deeper insights into their financial health, helping lenders to assess creditworthiness more accurately. In fact, AI analytics tools can process and analyse up to 300 times more data than traditional methods.
As AI evolves, it will create even more innovative solutions, revolutionising how brokers interact with clients and improve their workflows.
Interested in creating efficiencies using Hound’s platform? Talk to us today.
