Research Reveals Mortgage Industry's Emerging Need for AI-Led Transformation through IDP
on Mar 9, 2022 8:51:47 AM
Infrrd and Apps Run the World Release Study About Impact of Intelligent Document Processing Solutions on Mortgage Industry.
Findings Reveal IDP Adoption the Most Significant Development in Mortgage Industry; Addresses Trillion Dollar Industry's Emergent Need for AI-led Transformation
SAN JOSE, California, March 6, 2022 - Infrrd, a leading provider of Intelligent Document Processing (IDP) solutions, and Apps Run the World, a leading technology market research company devoted to the applications space, announced today the release of a study revealing IDP adoption as the most significant development within the U.S. mortgage industry.
According to the study of 200 banking and financial services companies, including 79 banks, 119 independent mortgage firms and two insurance carriers, deployment of IDP applications has become one of the most significant developments in the U.S. mortgage industry. The mortgage industry has become an expansive, fragmented marketplace, which processes trillions of dollars of transactions annually.
IDP is a next-generation solution for extracting data from complex, semi- and unstructured documents. Unlike technologies that came before it, IDP can handle document complexities and variations with the help of artificial intelligence (AI) and machine learning (ML) technologies. IDP aids in efficiently capturing and extracting information and digitizing documents from bank statements and pay slips to tax returns and personal information when processing loan applications. IDP is having a major impact on the extraction and management of information from a range of mortgage-related application documents and turning it into actionable data.
Key findings amongst respondents include:
• 38 percent have invested in IDP solutions since 2019
• 66 percent reported use of IDP resulted in the elimination of manual procedures, a typical business process for a labor-intensive industry which, until recently, continued to rely on legacy protocols such as fax machines to transmit documents
• 87 percent said data extraction and accuracy have been among the key reasons behind their purchase of IDP solutions, a major attribute that resulted in a dramatic reduction in processing time for banks and mortgage firms
• 67 percent stated compliance was among the key benefits to using IDP (among companies with less than $10 million in revenue)
• Larger organizations prioritized better customer engagement and experience (CX) as one of the key criteria for measuring their technology investment. They cited their need to deliver better CX through IDP more frequently. To this end, 57 percent of respondents with $201 million and above in annual revenue report better CX as the benefit of using IDP while the same was cited in just 27 percent of respondents with less than $10 million in annual revenue.
Other areas of importance for adoption of IDP and subsequent benefits cited by the key stakeholders who participated in the study include the importance of document quality control (called out by 57 percent of respondents), compliance (expressed by 53 percent of respondents), increased efficiency (noted by 49 percent of respondents) and quantifiable savings (shared by 46 percent of respondents).
“This study reveals precisely why we recently unveiled our proprietary and patented Infrrd for Mortgage platform. We had the foresight in knowing our AI- and ML-driven IDP solution would be ripe for the mortgage industry. We continue to demonstrate our 100 percent data extraction confidence rate, and as a result, our clients are seeing dramatic improvement in the extraction and classification of their data. Our mortgage customers can expect to realize a 45 percent reduction in loan application processing time when using Infrrd for Mortgage, which will positively impact their business operations, operating efficiencies, and cost containment strategies. This is directly in line with what respondents are seeing and hoping to continue to reap from IDP adoption across their enterprises and businesses practices,” explained Amit Jnagal, Infrrd founder and chief executive officer.
Albert Pang, Apps Run the World president who served as the lead in conducting the study, added: "Many industries are looking to AI-led technologies to drive business and operational transformation. It is clear from this study that leading mortgage organizations are quickly realizing the benefits of IDP to drive efficiency, accuracy, productivity, and cost-containment. Partnering with Infrrd on this important research reveals firsthand the key findings which are prompting transformation at financial institutions and mortgage firms that consider IDP essential building blocks for their future.”
To read the report, click here.
San Jose, Calif.-based Infrrd is a leading provider of proprietary and patented Intelligent Document Processing (IDP) solutions, which leverage artificial intelligence (AI) and machine learning to enable enterprises to extract and manage data from semi-structured and unstructured documents in large volumes. Infrrd offers pre-built, highly configurable solutions for managing complex documents with reliable accuracy, such as invoices, claims, and bank statements while also allowing organizations to create and train new models. Enterprises across the globe use Infrrd’s solutions to enhance employee productivity, improve operations, accelerate business scalability, reap cost efficiencies and deliver exceptional customer experiences.