3 ways document verification software helps expedite the lending process

While loan application volume is down in some areas of the market, economic pressures are also emphasizing why it’s so important lenders continue to invest in technology during a downturn.

Intelligent automation, including document verification software, enables lenders to make more informed lending decisions, assess creditworthiness more accurately and process more loans more efficiently.

According to research from Freddie Mac, lenders who maximize the use of digital tools report 40% fewer loan defects and a seven-day shorter loan production cycle time compared to those with lower usage of technology offerings.

Document verification software is invaluable to lenders in today’s increasingly complex and challenging lending marketplace.

What is loan verification software?

Today’s lending process requires constant, careful review of documents, making accurate and efficient verification essential to success. Intelligent verification software enables lenders to leverage data analytics and machine learning to confirm the authenticity and accuracy of borrowers’ documents, helping expedite the underwriting process and reducing the risk of fraud.

Processing documents is an essential but time-consuming task when making credit decisions and automated document verification software helps streamline that process.

This software uses advanced algorithms and artificial intelligence to automatically analyze and authenticate borrower data and documents, eliminating the need for manual authentication and reducing errors.

By leveraging document verification software, financial services providers can make quicker decisions, improve turnaround times and provide a seamless borrowing experience for customers.

How does loan verification software streamline the loan approval process?

The time-saving benefits of automated verification for lenders significantly improve operational efficiency by reducing manual verification time and effort. Plus, faster loan application processing ultimately leads to quicker decisions and turnaround times.

By minimizing manual tasks within the lending process and automating various time-consuming and labor-intensive processes, document verification software helps lenders to simplify their operations and improve efficiency.

Document verification software enhances loan processing speed by automating manual tasks, quickly verifying the authenticity and accuracy of borrower documents and reducing the need for manual examination by human eyes. Instead of manually inputting data, these tools allow lenders to extract information from documents quickly and accurately. This eliminates the need for physical document handling by digitizing and storing documents securely.

By automating the verification of borrower identification data and documents, lenders can also help ensure authenticity and compliance with regulatory requirements. This frees up valuable time and resources for lenders to focus on more strategic and high-value activities.

How can document verification technology improve security and reduce applicant fraud?

In addition to minimizing the risk of human errors, document verification software helps ensure higher data accuracy and reduces the chances of processing fraudulent or incorrect applications.

Document verification software detects fraudulent or tampered documents by analyzing elements like security features, fonts, watermarks and digital signatures to assess authenticity. This helps lenders by flagging suspicious documents to identify fraud attempts and mitigate risks.

These tools also play a crucial role in verifying borrower identities. By automating the identity verification process with document verification software, lenders can swiftly and accurately authenticate data and documents submitted by borrowers while improving overall security in the lending process. 

For example, Ocrolus’ identity verification solution automatically verifies borrower identity documentation and proof of residency information using advanced computer vision and contextual analysis.

Our technology classifies, captures and analyzes many types of documents such as driver’s licenses, passports, social security cards, state ID cards and more, comparing the information on the documents with various databases and known templates.

This robust verification process helps lenders establish the true identities of borrowers while reducing the risk of fraudulent activities.

How can document verification software help enhance the borrower experience?

By supporting more intelligent risk management practices, document verification software helps aid in regulatory compliance and provides a more secure lending environment for lenders and borrowers.

At the same time, these tools simplify the document submission process for borrowers, making it more convenient and efficient.

Instead of lenders manually sorting and validating physical documents, automated document verification tools enable lenders to upload borrower documents and data in various formats easily.

With just a few clicks, borrowers can securely upload documents including income statements and other necessary documentation, saving time and effort. Ocrolus AI-driven document automation takes this one step further with the ability to process even unstructured or semi-structured information submitted through cell phone images or written documents. This streamlines the document submission process for the borrower while eliminating the need for extensive paperwork and reducing the chances of documents being lost or misplaced by lenders.

Automated document verification tools improve the borrower experience by eliminating the need to physically visit lending institutions or send documents through traditional mail. This change saves both time and money, providing a hassle-free experience for customers.

By simplifying the document submission process, businesses leveraging automated document verification tools can enhance the overall borrower experience, leading to higher satisfaction and improved customer relationships.

These tools also help improve transparency in the lending process. Borrowers can easily track the status of their submitted documents, ensuring they are kept informed and up-to-date. This level of transparency reduces anxiety and uncertainty and improves borrower satisfaction.

Conclusion

During economic downturns, it becomes even more crucial for lenders to continue investing in technology.

Prioritizing technology investments, especially during challenging times, enables lenders to adapt and thrive and provide outstanding services in a constantly evolving lending industry.

By embracing intelligent document verification software, lenders can reduce costs, mitigate risks and expedite the underwriting process. And by offering borrowers a simplified, convenient and more transparent submission process, lenders can build stronger relationships and improve overall customer satisfaction.  

Takeaways

• Document verification software helps lenders automatically validate the authenticity and accuracy of borrowers’ documents.
• Document verification software helps lenders mitigate risk by detecting signs of document tampering and fraud.
• By reducing manual verification, document verification software helps expedite the loan approval process and enhance the borrower experience.

Ready to fast-track document and identify verification?

Book your demo to discover how Ocrolus empowers lenders to quickly and confidently validate borrowers’ documents with our automated solutions.