Why the mortgage broking industry needs to embrace rather than fear AI

For a sector that relies so heavily on the kind of repetitive work artificial intelligence was built for, the mortgage broking industry has been a shockingly slow adopter of AI, says Effi CEO, Mandeep Sodhi.

Perhaps this is because many in the industry still see it has a threat rather than an aid.

Deloitte’s 2020 Australian Mortgage report found almost half of respondents considered robo-advice and AI to be a major challenge to brokers.

This distrust of AI is robbing the mortgage broking industry of a valuable tool. It’s an attitude that needs to change fast if the valuable service brokers provide is to remain relevant.

In fact, mortgage broking is perfect positioned for benefit hugely from AI. No matter how smart artificial intelligence becomes it will never be able to replace the kind of valuable human to human interaction and understanding a mortgage broker can provide but, what it can do is take on the repetitive grunt work that saps time and energy from those interactions. This means more time can be taken getting to know a client really well enabling a broker to understand their need intricately so they can provide the best possible service for that client.

AI can also streamline and automate processes that take up client’s time like filling in numerous and repetitive forms and waiting on phone calls to scheduled meetings. This means that clients have more time to convey their needs to their broker and to get to know them.

The end result is a closer, more valuable relationship between brokers and clients. Developing this kind of relationship that means clients are comfortable picking up the phone to ask their broker questions or seek further advice and the broker has the time to answer them thoughtfully and thoroughly.

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Source: Why the mortgage broking industry needs to embrace rather than fear AI – The Adviser