MoneyThumb's PDF Insights is a popular product with lenders who need a safer and more efficient way to make lending decisions. Therefore, the Rules of Thumb blog likes to discuss topics of interest to lenders. Today's blog post covers a recent survey of the sentiment of lenders when it comes to transforming to digital conducted by the mortgage lender, Fannie Mae.
The survey is titled How Lenders Asess Their Digital Transformation Efforts. Nearly 200 senior lending executives were surveyed so that we could have a better understanding of how lenders balance front- and back-end digital transformation investment, as well as how they assess the success of each. If you would like to read the full 29-page report in PDF form, follow this link. For your reading convenience, we have created a rehash of the results of the survey below:
- Digitization is rapidly changing how organizations create value and compete. The main takeaway from the survey performed by Fannie Mae was that the majority of lenders are more concerned with improving the front end prospective borrower's experience than on their own back end operational efficiency. As a result, the lenders found more success with front end changes they made in their digital transformation efforts.
- Lenders were also asked to identify the most important areas they focus on when improving the front-end borrower experience. Most lenders cited reducing cycle time, providing more user-friendly loan application platforms, and training personnel to be consultative as the most important focus areas. By contrast, reducing borrower costs were generally considered less important.
- While most lenders cited the implementation of a Point-of-Sale (POS) system as a successful example on the front-end, it is more difficult to implement a single solution to transform backend operations. Lenders who were surveyed said that they found it relatively straightforward to calculate returns on the implementation of a POS system, but that calculating returns on back-end digital transformation efforts are often harder to measure, and, any returns might stay negative for several years as these efforts generally do not yield immediate cost savings.
Taking these survey results into consideration, the beauty of PDF Insights for lenders is that it is extremely helpful with the backend process that plagues lenders in the age of digital transformation. Our software serves as your first set of eyes by automatically processing bank statements. Then, through a side-by-side feature, it empowers an underwriter to manually review the actual bank statements, while also instantly pulling insights and calculations. This dramatically increases the speed and accuracy of the human underwriting process.
Unlike competing solutions, this software doesn't need to be told upfront which bank or format is being used, yet correctly processes over 99% of U.S. bank statements. The output from each statement is delivered in a standardized format, even for statements from different banks. Through simple API Integration, PDF Insights automatically initiates and conducts a statement reading process. It then identifies high-level calculations, such as total deposits and total withdrawals, plus line by line transactions. It can also identify targeted transaction types, such as large deposits or large fees.
In addition to text-based PDF statements, PDF Insights also processes scanned or faxed image-based PDF statements. Our proprietary OCR algorithms review questionable fields, look for patterns to self-correct and then flag transactions that are still unknown or questionable for manual review and correction. PDF Insights can be installed as a web service that can be called to convert several bank statements at the same time (e.g. 3-6 months). This web service can be locally installed on your bank’s servers to function as a powerful batch processing engine for your custom workflows.
Our automated statement reconciliation feature compares transaction totals to summary information on the statement. If all information on the statement is consistent, PDF Insights will identify the statement as reconciled, meaning you don’t have to spend time manually reviewing statements to identify inconsistencies.
If you are a lender who has yet to try out this great product from MoneyThumb that will help your organization make more informed and safer lending decisions, below is a video demo of how PDF Insights works.