The article describes a client who used an online lender that uses AI technology to approve loans quicker, as well as some statistics based on how AI can save time.
What is AI?
Artificial intelligence technology uses algorithms, data, and predictive models to automate the process of finding and delivering specific information. AI is known for powering the world’s largest companies such as Google, Facebook, and Amazon.
“Artificial Intelligence” is not one thing. It consists of various advanced technologies that include machine learning, pattern recognition, natural language processing, and robotics. These technologies can be applied in areas like finance and banking to make a loan application process much faster by automating some tasks.
How will AI change the future of lending?
AI is one of the most significant technologies to come out of Silicon Valley in recent years. By processing millions of loan applications and it’s algorithms, online lenders can now assess an applicant’s creditworthiness in a matter of seconds. This will allow for a faster loan approval process as well as lower borrowing costs. AI also has the potential to make lending more ethical by offering more transparency for borrowers.
The current lending industry is in need of a change and AI has the potential to provide just that. Algorithms will be able to determine the customer’s risk better than humans, and finding genuinely affordable loans will not be as difficult. In this way, AI can speed up a loan process that currently takes up to 12 days while minimizing customer risk.
Benefits of using an AI lender
The AI lending industry has been the forefront of technology over the last few years, offering a multitude of benefits for people. If you are looking to implement a new strategy for your loan approval process, an AI lender might be just what you need. With all its benefits, it’s no wonder that many lenders have already started incorporating it into their business model.
The benefits of using an AI lender are numerous. There are many lenders out there with unfair practices, such as hidden fees and requiring a large down payment. With an AI lender, there is no need for money upfront and no monthly fees. You don’t have to worry about the lender changing their rates or increasing your interest rate suddenly.
Should you use a traditional lender with or without AI technology?
Despite the use of AI technology, some lenders believe that it’s better to use their traditional methodologies. A lender may consider a borrower’s credit score and loan history before approving a loan. For example, if the borrower has money problems, then the lender would be more likely to approve the loan. However, with the use of AI technology, they would be able to make an accurate decision on whether or not to approve a loan in seconds due to previous results of similar loans
Traditional lenders and online lenders use many different methods to determine their lending decisions. Depending on your credit score, type of loan, and collateral, a traditional lender may be more or less favorable than an online lender.
Is one lender better than the other?
There are many online lenders available, so which is the best? There really isn’t one lender that fits everyone. A lender like SoFi is more expensive than other lenders, but they offer a lot of perks. For example, they have no fees and they’ll cover your loan if you ever default. There are a few other lenders like this as well. It’s usually up to borrowers to decide which lender works best for them!
Each lender has their own advantages and disadvantages, so it is important to do your research before deciding which one to choose. If you’d like a better loan approval rate, you should look into online lenders who offer the best loan options with short-term interest rates.