Seeking a loan is something many individuals will need to do at different life stages. Loans are often used to assist in financing expensive purchases, such as cars, business machines, industrial equipment, and homes. Cash loans can also provide much-needed breathing room. Obtaining these funds requires more than just asking, of course. Customers must go through a loan approval process first.

This process is fundamental to a lender’s success. Any organization making funds available for a loan wants confirmation of one question: can the recipient meet the loan terms and make reliable payments? Lenders want to recoup the principal of the loan, of course, but they also generate revenue from interest. Granting loans to high-risk customers can lead to defaults and losses.

Challenges Facing Today’s Approval Processes

The approval process has traditionally been rife with challenges for lenders and customers. Customers want quick answers. Lenders want to conduct due diligence and assess risk while delivering good service. This process was mainly manual in the past and even in many organizations today. That leads to many issues, such as:

• Approvals can only occur during business hours when staff are at their desks and engaging directly with customers.
• Slow turnaround times due to delays in collecting important customer documents, signatures and other information.
• Manual data entry errors that lead to delays or costly mistakes.

Today, it’s possible to bring automation into this space to streamline loan approvals without exacerbating risks. Using platforms from Tungsten Automation and solutions in the Tungsten Marketplace, you can unlock customer-facing benefits and advantages on the back end. The Loan Approval Process Chatbot by Cognigy opens the door to these opportunities. Here’s how.

Improving Loan Approvals With a Chatbot

The Cognigy chatbot solution integrates AI agents directly into automation workflows powered by Tungsten platforms. These platforms include:

• Tungsten RPA, for using robotic process automation to accelerate rules-based tasks mimicking human interactions in software systems.
• Tungsten Capture is used to capture and extract high-quality data from digital documents and other types of paperwork.
• Tungsten TotalAgility is an advanced platform for intelligent workflow automation beyond what’s capable with RPA alone.
• Tungsten SignDoc for gathering secure and legally compliant electronic signatures from loan applicants.

These back-end integrations are invisible to customers but provide a powerful resource. Customers access the chatbot via your mobile application or web chat window. An AI agent guides inquirers through the application process, prompting them to provide particular information as needed. For example, the bot might ask applicants to submit proof of income as part of their application.

Once uploaded, the bot’s integration with Tungsten Solutions automates the extraction and classification of data from documents such as pay stubs. It populates the data into your business software used for calculating loan approvals. Meanwhile, the AI bot continues to guide the applicant, answering questions in natural language and providing a high-quality experience.

Benefits for Customers and Your Team

Customers can engage with the bot at any time. Once the application process is complete, you can grant automatic approval or pre-approval based on defined business rules. You can then transfer the application to a human worker for final consideration and approval. Customers can receive notifications following submission by voice call or digital notification. The benefits for customers are clear: faster results and a more engaging process all under one roof.

With solutions like this chatbot, you can reduce manual touchpoints across the application process. That frees up time usually devoted to menial tasks to allow workers to focus on more high-value work, such as evaluating edge case applications or making approvals for very high-value loans. Fewer errors and better quality data translate into saved time and money without increased risk of granting unsuitable loans.

With workflow automation and advanced AI agents on your side, financial service providers and lenders can improve outcomes on both sides of the experience.

Start Streamlining Your Approvals Process Today

Deploying a chatbot that offers seamless integration between Tungsten RPA, Capture, TotalAgility and SignDoc can benefit lenders considerably. Whether you handle loans for homes or other purposes, configuring the chatbot to align with your requirements is easy with consulting from Cognigy. Customers can apply for loans and even potentially receive pre-approval information without manual human intervention.

The loan approval process doesn’t have to be a challenging and slow workflow. Instead, it can be a source of value for your business. With a chatbot that provides AI guidance through the process, customers can have their questions answered while back-end systems receive the data necessary for approval calculations. Take the first steps towards reshaping this core process in your business today by exploring more about these solutions in the Tungsten Marketplace.