Based on the 2022 Annual LexisNexis Risk Solutions Study, fraud costs across U.S. and Canadian financial firms have risen by 22.4% compared to their pre-pandemic levels. This has made the business of loan underwriting even more crucial.
There are different forms of fraud that occur with loan underwriting. This could be through the provision of false information on loan applications, applying under a false identity, or the misrepresentation of income or assets to apply for a loan.
Beyond the financial impact, underwriting fraud also damages the reputation of lenders and erodes trust in the financial system.
It, therefore, makes sense for businesses to invest in strong fraud preventive measures to mitigate the risk of fraud to their operations and more importantly their financial stability. That is why ServiceFirst, provides companies with a loan underwriting outsourcing solution to cover that need.
Along with its host of high-quality, innovative, and cost-effective outsourcing services is ServiceFirst’s loan underwriting solutions. These are geared to empower clients to focus on their core competencies, while ServiceFirst takes care of the backend work. This has been ServiceFirst’s expertise in the loan underwriting industry since 2015.
Why outsource loan underwriting
There are several reasons and strategies why outsourcing loan underwriting makes sense. Here are a few:
Automation of the loan application process: With automation tools like interactive voice response systems and chatbots, the process of loan application can be streamlined. This speeds up processing times to improve efficiency.
Use of data analytics: Trends and patterns in customer behavior can be identified by a contact center. Data gathered may be used to improve the process and optimize the rate of loan approval.
Predictive modeling implementation: The analysis of customer data will allow a contact center to assess the probability of a loan default and identify risk factors. Underwriters are then allowed to make informed decisions. This will reduce the risk of issuing loans to high-risk borrowers.
Utilization of AI-powered chatbots: Chatbots powered by AI may help provide personalized customer support and service. This enables potential borrowers to get the information they seek quickly. With reduced wait times, customer satisfaction is improved, and underwriting teams are freed-up to work on more pressing and complex jobs.
Provide development and training: Ongoing training and development can be conducted by contact centers to upskill underwriting teams. This will enhance the quality of loan underwriting and improve the team’s efficiency.
Why partner with ServiceFirst
Aside from empowering financial partner institutions with the capacity to work on growing their business by freeing them up of the laborious task of loan underwriting, ServiceFirst has created proven loan management and database systems to make the business of loan underwriting more efficient.
Here are some of the platforms exclusive to ServiceFirst:
Panda, Vertical, EPIC & Eagle
One Click tools & Zebra
Contact ServiceFirst at firstname.lastname@example.org for a free demonstration.