Generative AI in Loan Origination

Introduction

In my previous post, I shared an overview of how Generative AI can revolutionize loan origination. Now, let's delve deeper into its practical application in Indian banks.

Loan Origination Process

Loan origination involves multiple steps, from gathering customer information to risk assessment, documentation, and disbursement. This process can be time-consuming and laborious.

Generative AI Capabilities

The following capabilities of GenAI make them well placed to transform origination process:

• create high-quality text, images, and videos;
• synthesize large datasets to generate new, meaningful insights, identify patterns, and
• make predictions for effective and faster decision-making.

Automating Financial Statements

Generative AI can automate the reading of financial statements, significantly reducing errors and boosting efficiency particularly considering data from multiple sources including unstructured data such as business proposals, relationship manager's interaction summary with applicant etc.

Caution to be observed to sufficiently test the numbers and scores as current versions of GenAI may be less effective with math operations as they are designed for creativity.

Credit Memos Automation

Automation of credit memos can be done with ease by GenAI, significantly reducing the time taken for a credit manager to prepare.

Data Collection

GenAI powered conversational interface can be a powerful tool in collecting data from customers in a self-serve mode or agent assisted mode.

Here It's crucial to limit GenAI's discussions to relevant context. In my experience, i have observed NLP bots discussing in inappropriate topics.

Assessing Potential

GenAI can be exceptionally useful in assessing potential based on social media following, content, customer reviews etc. for emerging gig workers and entrepreneurs.

Fraud Detection

In fraud detection, the pattern recognition and processing large datasets capability of GenAI comes in handy.

Transforming Consumer Lending

Autonom8's technology is transforming consumer lending by reducing the process from 15-18 days to just minutes, enhancing the customer experience.

Conclusion

Generative AI is well-positioned to streamline the loan origination process, creating happy employees, partners, and customers. However, it's important to tread with caution and ensure privacy and data security.