Banking chatbots — your new on-demand mortgage advisors

You and your wife have finally saved enough money to apply for a home loan. You’re sitting with a banker for the fourth time in two weeks, and you’re told that you’re going to need to find a pay slip from a job you worked at over a year ago. You pointlessly pat at your pockets and dig through your briefcase, but you know the truth: you don’t have the documents required to move forward. Visit five is in the cards. The headache you had last week returns, along with an unhealthy dose of stinging doubt and anxiety. This process should be easier.

This is sadly not an uncommon scenario. Applying for a home loan or mortgage is tedious and time-consuming. Many young professionals are looking for homes to raise their children and commute to work. Owning a home can be an extremely rewarding and lucrative prospect for anyone with the means to make it happen. Doing so, for at least 95% of us anyway, requires taking out a home loan from your trusted financial institution. Let’s examine how Chatbots are used to simplify this experience.

Helping Banking Customers

mortgageadvisorChatbots are indeed revolutionizing customer services in the banking industry, and home loans are no exception. Taking a home loan is often thought of as a rather personal experience – you often sit, one-on-one with a mortgage banker, and discuss your options after carefully scrutinizing large sections of personal banking information. Many see this as a daunting and often uncomfortable situation.

With a Chatbot, all of the questions, concerns, paperwork, and other aspects of taking out a loan are automated, meaning you can get all the info you need, and ask all the questions you want. Not only will having a conversation with an intelligent Chatbot put consumers at ease, it’s also a far more efficient way of collecting vital information. Talking with an in-person loan officer inside a branch is a huge time commitment, often involving multiple visits, tons of paperwork and signatures, waits in line or on hold, and scheduled appointments. Chatbots can answer your questions and offer advice and suggestions instantly.

The catalyst starts as a simple question or suggestion. Something along the lines of, “I would like to take out a home loan. What are my options?” Through suggestive artificial intelligence, the bot will ask several follow-up questions that will allow it to gauge where you’re at financially, then go over options available to you and discuss possible steps needed to secure your loan. If you don’t qualify for one, the bot can help you discover the steps needed to take in order to qualify.

You can also use Chatbots to check on the status of your loan at any time, simply by asking. Again, there are numerous steps that need to be taken during the home loan process – it’s difficult to track manually. Chatbots can keep you updated whenever progress is made, every step of the way. All you have to do is request a status update. And if a conversation with a real life loan officer is needed, a Chatbot will help you schedule the appointment with the closest and most qualified loan officer.

Helping Banking Employees

"The average bank needs to pour a ton of capital into processing
and approving a mortgage - this form of capital manifests itself 
as 'Inititian Fees,' but these fees rarely cover the cost required
to process a  home loan...sound like a loss-making proposition?
It is."
Chatbots can also be incredibly helpful for employees in the banking industry. Though taking a loan is tedious and difficult for customers, it’s certainly no walk in the park for loan officers. The average bank needs to pour a ton of capital into processing and approving a mortgage – this form of capital manifests itself as “Initiation Fees”, but these fees rarely cover the cost required to process a home loan. The average bank spends upwards of $6,000.00 processing a single home loan, and often ask for a $2,000.00 fee upfront. Sound like a loss-making proposition? It is.

The bottom line? Chatbots save customers time, yes, but they also save financial institutions money. The example you just read has been simplified for the sake of comprehension, but there are a myriad of other fees and expenses needed just to process a loan, often totaling well over the aforementioned $6,000.00. Chatbots are here to automate this painful procedure, making it efficient and cost-effective for customers, and financial institutions.

Financial Discovery with Chatbots

The idea of discovering financial services conversationally can be applied to many other facets of the banking industry – use Chatbots to apply for a new credit card, discover alternate investment options, get insurance quotes – all by having simple, natural conversations. If you want to learn more about how Chatbots are changing the world of banking, check out this informative page (and videos) we’ve put together!