At the heart of these concerns lies a substantial fear: losing the human interaction that many of those working in the industry consider to be so pivotal to the entire mortgage process.

Yet the role of AI in the mortgage industry is not to replace the unique and integral relationship between brokers, their clients and lenders. Instead, AI can be used to enhance and support lenders and brokers by streamlining the application process and improving business efficiencies.

Given the complexity surrounding the mortgage process, being able to speak to a broker for reassurance and guidance will always be a vital part of taking out a mortgage.

Speaking to a real person

The idea that technology and AI will replace this human interaction is misguided. A mortgage is a significant commitment; one that is not to be taken lightly and many borrowers will continue to prefer to speak to a real person about their mortgage needs.

However, where AI could revolutionise the mortgage industry, is by analysing and processing the vast amount of data and documentation required to get the mortgage application over the line. This includes information such as customer payslips, bank statements and tax returns.

By having AI take care of the administrative burden, brokers can free up time to focus on generating new business and offering the personalised service that borrowers often value.

AI can also offer insight into customer preferences and behaviours. This can be used to identify potential leads and maximise sales opportunities as well as enable brokers to adjust the way they work by helping them to use their time more efficiently and achieve better success rates.

Used correctly, AI will help brokers and lenders differentiate themselves in an increasingly competitive market. 

The true cost of AI?

Implementing AI and new technology does of course come at a cost, but this is also an area of discussion that is generally misleading. Sceptics of AI often consider the technology to be prohibitively expensive and lacking in accuracy, perceiving it as backward-looking rather than forward-looking. This is simply not true.

Of course, the implementation of any technology will require some level of investment, but Sikoia’s AI-powered tool for example, works with current systems and can be implemented in a way that requires minimal changes to existing processes and behaviours.

Admittedly, this type of technology would have been costly and unreliable a few years ago, but today, AI can fill that gap efficiently and affordably.

Plus, the cost savings made by streamlining business processes, eliminating the need for manual checks and therefore, the risk of human error, means both lenders and brokers will have more time to focus on growing their businesses.

This can lead to higher productivity and may mean there is less of a need to add more staff to handle increased volumes of paperwork.

Tangible benefits

While it is totally understandable that those unfamiliar with how AI works in practice would raise concerns regarding the cost or value of implementing the technology, it is important that those working in this space continue to educate the sector on the benefits of AI in order to dispel the myths associated with the technology.

The fact of the matter is, AI has the potential to streamline the entire end-to-end mortgage process and improve the experience for customers, brokers and lenders alike.

Those who embrace the technology will see their business transformed through greater market intelligence, lower processing costs, personalised customer interactions and improved business efficiencies. Those who don’t, risk being left behind.

Alexis Rog is CEO and co-founder at Sikoia