Aussie fintech DAIDEC Analytics has deployed a predictive analytics tool for brokers, which assesses and scores mortgage loan applications.
The new solution, D.Tag, uses machine learning to alert brokers on ways to speed up or improve applications, with the goal of speeding up their approvals.
The product is a component of the D.Suite system, which connects to customer relationship management (CRM) software, assesses loan requests and assesses their likelihood of approval. Brokers will be alerted if they need to review and spend more time on requests.
DAIDEC launches the product on the market after completing a pilot project with an anonymous group of brokers.
Roger Dench, chief executive of DAIDEC, said his company has focused on circumventing the bounce in requests (for example, due to requests for additional information) between the lender, broker and client.
The tool would have helped reduce the number of tasks that would normally be performed by multiple people during the mortgage application process.
“It takes around 100 tasks to get a mortgage approved and along the chain, time and cost inefficiencies can occur and be magnified,” Dench said.
“Each of these pain points can cause borrower frustration, explode broker costs, and delay lender approval.”
DAIDEC’s analysis for one client found that 16 percent of loans took 64 percent of their brokers’ time, and that was often the case in the home loan market.
“Brokers spend most of their time on bad loans – but they don’t know which bad loans are until it’s too late, and they block the system.” Mr Dench said.
He added that reviewing and evaluating referrals on loan applications from the D.Tag tool will be the “real source of income” for brokers as it could tell them if there are any issues. potential problems and more time needed.
“That doesn’t mean it’s a bad loan and it’s going to be rejected – we’re not playing in the credit score space – it’s just a warning to the broker that it’s going to take a little longer. time-consuming, and probably require specialist experience, ”Dench said.
“The D.Tag helps the broker by giving them insight into the quality of the application they have in front of them and the potential problems, so that they can, where needed, create a better application. , before the loan is submitted. The system anticipates and anticipates approval issues.
The product could help brokers tackle the uncertainty surrounding turnaround times, an issue that causes widespread angst in the industry.
“At this time, brokers cannot give their clients any confidence in how long it will take to get approvals as everyone is overwhelmed with volume and brokers cannot know which applications will be the most problematic. “said Mr. Dench. .
Although it has been marketed to analyze home loans, DAIDEC has stated that the D.Tag tool is easily transferable to business loans and will ultimately be applicable to similar jurisdictions offering mortgage products similar to Australia. .
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Sarah Simpkins is the managing editor of Mortgage Business and The Adviser.
Previously she reported on banking, financial services and wealth for InvestorDaily and ifa.