Level 1: Manual Processing
- Human Involvement: 100%
- Description: All tasks, from document verification to decision-making, are performed manually by human loan officers.
- Pros: High accuracy, personalized customer service.
- Cons: Time-consuming, error-prone, limited scalability.
At this foundational level, human involvement is paramount, with loan officers responsible for every aspect of loan processing—from document verification to final decision-making. This hands-on approach ensures high accuracy and personalized customer service, leveraging the loan officer's expertise to navigate complex financial situations. However, the process is inherently time-consuming and susceptible to human error. Additionally, it lacks scalability, as each loan application requires individual attention, limiting the ability to handle large volumes efficiently.
The majority of lenders have evolved beyond these rudimentary processes, acknowledging their inefficiency.
Level 2: Basic Automation & Digital Tools
- Human Involvement: 75%
- Description: Utilizes, workflows, and Robotic Process Automation (RPA) using rule based logic for repetitive tasks like data entry and form filling, and further processing.
- Pros: Increased efficiency, reduced errors in routine tasks.
- Cons: Limited scope, still requires significant human intervention for decision-making.
Level 2 represents the first step forward from manual processing by integrating tools like simple e-sign "docusign like" solutions, and online data entry and form filling. This approach increases efficiency and reduces errors in routine tasks, freeing up human resources for more complex activities. However, it still requires substantial human intervention for the customer journey, and for internal decision-making and nuanced tasks, limiting its overall scope.
However, this stage only covers internal processing and is unlikely to impact your contact centers, or the level of resources dedicated to compliance checks, and credit analysts.
While this level of automation offers clear benefits, many organizations are already looking beyond RPA to more advanced AI-driven solutions that promise greater autonomy and precision.
Lightico Solutions available at this stage: eSign, Forms, Basic Document Collection, Payment gateways, API Access
Level 3: Advanced Automation
- Human Involvement: 50%
- Description: Incorporates workflows, ID verification, Optical Character Recognition (OCR) to digitize and process documents, enhancing data extraction and processes.
- Pros: Faster processing, better data management, no/low code workflows.
- Cons: OCR struggles with complex documents, still lacks contextual understanding.
At Level 3, the incorporation of workflow automation, no/low code builders, ID Verification, Optical Character Recognition technology, and more, marks a significant advancement in processing efficiency for auto lending. However, while this level offers considerable benefits, it still has limitations, particularly with complex documents and contextual understanding. Despite these challenges, this level represents a crucial step toward more automated and efficient document handling in the auto lending process. To achieve this level of automation, customers must purchase or build a Lightico solution.
Lightico Solutions available at this stage: eSign, Forms, Basic Document Collection, API Access, payments, Workflows and no/low code workflow builders, ID Verification, data extractions and CRM sync (ie Salesforce integrations).
Level 4: Intelligent Document Processing (IDP) & AI Analyst Co-Pilot
- Human Involvement: 25%
- Description: Combines OCR with ML and Natural Language Processing (NLP) to understand and process documents contextually. AI 'reads' the documents and data, ensuring accuracy and compliance, providing analysts with all the information they need to aid in decision making. AI acts as a co-pilot, assisting loan officers by analyzing data, highlighting risks, and suggesting decisions.
- Pros: High accuracy, adaptable to various document types, reduced manual oversight. Enhanced credit analysts decision-making reduced human errors, greater transparency.
- Cons: Higher implementation costs, requires human in the loop.
At Level 4, IDP which is the combination and integration of AI, Optical Character Recognition (OCR) with Machine Learning (ML) and Natural Language Processing (NLP) takes document processing to new heights. This combination allows systems to contextually understand and process a wide variety of documents, significantly reducing the need for manual oversight. This level boasts high accuracy and adaptability to different document types.
AI takes on the role of a co-pilot, either in the background as APIs or with a GenAI style user interface, assisting loan officers and credit analysts, by analyzing data, understanding documents, identifying risks, and suggesting decision paths. This significantly reduces "Stare and Compare" fatigue, eliminating errors, enhances the decision-making process for credit analysts, and increasing transparency. The AI provides valuable insights that aid in more accurate and efficient evaluations.
The benefits of AI processing documents to add contextual understanding and reduce manual intervention from analysts, make it a first, pivotal step in the direction of true Autonomous Consumer (Auto) Finance.
Lightico Solutions available at this stage: eSign, Forms, Basic Document Collection, API Access, payments, Workflows and no/low code workflow builders, ID Verification, data extractions and CRM sync (ie Salesforce integrations), IDP and AI Analyst Co-Pilot.
Level 5: Straight-through Review Processing
- Human Involvement: 10%
- Description: AI systems autonomously handle the review process, significantly speeding up the verification and validation stages without human intervention.
- Pros: Credit decision-making is 100% based on AI making decisions instantaneously.
- Cons: Potential for inadvertent bias, however, the AI learns to counter bias.
Level 5: Straight-through Review Processing represents a significant leap in the loan processing landscape, with AI systems autonomously handling the review process. Human involvement is minimized to just 10%, for cases that the AI flags or has difficulty in processing. AI accelerates the verification and validation stages, making credit decisions instantaneously. This level of automation offers unparalleled speed and efficiency, but it also carries the potential for inadvertent bias. However, the AI continually learns and adapts, working to counteract any biases and improve decision-making accuracy over time.
Lightico Solutions available at this stage: eSign, Forms, Basic Document Collection, API Access, payments, Workflows and no/low code workflow builders, ID Verification, data extractions and CRM sync (ie Salesforce integrations), IDP and AI Analyst Co-Pilot, AI Decision Engine.
Level 6: AI Customer Engagement - AI Chat and AI Voice Channels
- Human Involvement: 5%
- Description: AI chatbots and voice assistants handle complex customer interactions involved in the loan lifecycle, conducting customer service interactions, and managing inquiries.
- Pros: Improved customer service with immediate responses, faster processing, and reduced human errors.
- Cons: The need for continuous updates to handle evolving customer needs.
At Level 6, AI chatbots and voice assistants take charge of handling complex customer interactions involved in the loan lifecycle, including customer service interactions and managing inquiries. With only 5% human involvement, these AI systems provide immediate responses, speed up processing times, and reduce human errors, significantly enhancing customer service. However, to maintain optimal performance and meet evolving customer needs, continuous updates and improvements to the AI systems are necessary. However, if a lender works with a solution provider focused on AI for the lending market, substantial savings but in resources and money can be saved.
This level signifies a near-autonomous end to end process, marking the early step to complete Autonomous Consumer Lending.
Level 7: Fully Autonomous
- Human Involvement: 0%
- Description: AI systems autonomously handle the entire loan processing cycle, from document analysis to final approval decisions, with minimal human intervention.
- Pros: Maximizes efficiency, eliminates human bias, operates at scale.
- Cons: Requires advanced AI capabilities, significant regulatory oversight, potential trust issues with applicants.
At Level 7, AI systems autonomously manage the entire loan cycle, from customer interactions on any channel and on any device, customer facing and internally focused document analysis to final approval and loan servicing correspondence, with minimal human intervention. This approach maximizes efficiency, eliminates human bias, and scales operations effectively.
This marks the pinnacle of innovation, propelling the industry into a new era of fully autonomous lending journeys.
Move Beyond the LOS and DMS Experience
In the current Auto motive sales and financing atmosphere, changing interest rates, and persistent post-pandemic demand, even 4 years later, has made it critical for auto lenders to manage deal jackets efficiently, while still maintaining exceptional customer experiences .
Efficiency is best measured when your costs and resources are lower than the output revenue or benefit. If An auto lender's margins are eroded by extensive staff to originate, underwrite, and service a loan, this eats into the bottom line.
While the aim should be to achieve full Autonomous customer journeys, financial service organizations need to take action now. Here is where starting with level 4 takes shape, and Intelligent Document Processing (IDP) emerges as a key technology step.
IDP offers significant advantages to credit analysts by automating data extraction, allowing them to focus on complex evaluations. This automation not only reduces human error by providing precise data but also ensures regulatory compliance, freeing analysts to concentrate on in-depth credit analysis.
Beyond Loan Origination Systems (LOS) and Dealer Management Systems (DMS), IDP has untapped potential to enhance customer experience through faster processing and quicker approvals. It also aids in fraud detection by flagging inconsistencies for further investigation and streamlines underwriting, facilitating faster and more informed loan decisions.
Autonomous Consumer Finance with AI Chat & AI Voice
Using AI in customer communication channels is not new. Early generation implementation can answer customer inquires, and simple "routing" based on the customers input, sentiment, and requested action. In reality, these chats and voice prompts only acted as guides, not being able to actually complete actions that would typically require a human associate to complete.
When aiming to achieve fully autonomous consumer finance, true AI Chat and AI Voice Channels combined with a platfrom that executes, loans and servicing, represents the pinnacle of AI integration in the loan lifecycle. With minimal human involvement anticipated at just 5%, AI chatbots and voice assistants take charge of complex customer interactions, managing inquiries, conducting customer service tasks, and providing real-time support throughout the loan process.
This transformation allows for immediate responses and faster processing times, significantly enhancing customer service and reducing human errors. Combined with the IDP Co-pilot, lending organizations can expect significant savings, increasing the value of each loan.
Discover the Transformative Power with Lightico's AI-Powered IDP & Autonomous Consumer Finance
Refined Document Classification: Lightico's AI adeptly categorizes incoming documents, from pay stubs to utility bills and W2s, simplifying document management. This organizational strength expedites identification and retrieval of essential paperwork during loan processing.
Efficient Data Extraction and Association: Seamlessly extracting pivotal borrower information such as names, salary details, and addresses, Lightico meticulously associates them with relevant attributes within documents. This streamlines data extraction crucial for contract generation and assessment, enhancing accuracy and expediting processes.
Seamless Interaction via Natural Language: Lightico’s natural language interface empowers loan officers with effortless document interaction. This intuitive feature enables swift retrieval of pertinent borrower details, augmenting the pace of decision-making.
Q&A Data Query Capabilities: Interact with your documents through a natural language interface, making it effortless to find and retrieve the information you need. Common Questions can be pre-configured, or manually entered.
Photo ID Authenticity Verification: Trust in the authenticity of photo ID documents with Lightico's robust verification capabilities.
Data Validation: Ensure the accuracy of data within your documents by cross-referencing with customer records reducing the risk of errors.
Document Indexing and Storage: Let our AI take the guesswork out of where your documents belong. Lightico automatically indexes and stores documents appropriately based on their type and content.
AI-Powered Workflow Engine for Unmatched Efficiency
Automated Operational Excellence: Lightico’s AI-integrated no-code/low-code workflow engine creates a cohesive customer experience and in-house or outsourced development productivity. Build once and deploy everywhere. When regulations and internal compliance demands change, make the change one time and have it reflected in all channels instantly.
Accelerated Development Cycles: Leveraging pre-built AI models, and Lightico's center of excellence, Lightico expedites development cycles, allowing swift integration and deployment of customized lending functionalities, reducing time-to-market for new products, processes, and customer facing use cases.
Continuous Adaptive Learning: Lightico’s solution continuously adapts and evolves through learning from past processes, optimizing workflows, ensuring ongoing efficiency, and accuracy enhancements.
Benefits & Impact of IDP in Auto Finance
Reduced cost: Lightico IDP significantly minimizes the financial burden associated with manual data entry tasks such as repetitive "stare and compare" reviews, printing, posting, rekeying information, and processing. By automating these labor-intensive processes, Lightico IDP not only reduces salary and overhead costs but also enhances overall operational efficiency and accuracy.
Improved completion rates: Lightico IDP workflows streamline the document capture process, ensuring that all necessary documents are promptly and accurately captured at the point of sale. By reviewing these documents in real-time, any errors or discrepancies can be swiftly identified and rectified on the spot, rather than being flagged for separate and delayed processing. This proactive approach not only enhances efficiency but also reduces the likelihood of errors slipping through the cracks, ultimately leading to a smoother and more seamless journey for both applicants and loan processing personnel.
Improved time to completion: Lightico IDP produces efficient loan processing timelines, with fewer delays and bottlenecks that can often slow down the approval process. By automating data extraction and verification tasks, documents are processed promptly and accurately, reducing the waiting time for applicants and improving overall operational efficiency.
Reduce fraud – Lightico IDP's advanced capabilities in automatic data/document verification/validation and cross-referencing of information are instrumental in effectively mitigating the risk of fraud. By harnessing the power of AI and machine learning, Lightico IDP ensures a robust validation process that significantly reduces the likelihood of fraudulent activities slipping through the cracks. This comprehensive approach not only enhances security and trust in the lending process but also provides a seamless and reliable experience for both applicants and loan processing personnel. Trust in the accuracy and authenticity of data is paramount.
Improved accuracy: IDP has a considerably higher level of accuracy than human review. This advanced technology eliminates the margin of error that often accompanies manual data entry processes, ensuring that the extracted information is precise and reliable. By leveraging AI, IDP not only enhances the accuracy of document interpretation but also minimizes the risk of human oversight or misinterpretation. This increased level of precision not only boosts operational efficiency but also instills confidence in the data being processed, ultimately leading to more informed decision-making and improved outcomes in the loan origination process.
Improved compliance and auditing: With IDP, fail-safe processes are implemented to ensure that every case is automatically reviewed in strict accordance with compliance requirements. This meticulous approach eliminates the risk of human error, providing a robust system where regulatory standards are consistently met. By leveraging the power of AI and machine learning, IDP offers a seamless and reliable method of auditing that instills confidence in the accuracy and integrity of the data being processed. This comprehensive compliance framework not only enhances security and trust in the loan origination process but also guarantees a smooth and error-free experience.
Higher Customer NPS and Satisfaction: Customers get what they want faster, with less hassle, leading to improved customer retention and higher conversion rates. This streamlined process not only enhances customer satisfaction but also fosters loyalty and repeat business. By providing a seamless and efficient experience, customers are more likely to return for future transactions and recommend your services to others. Additionally, the reduced wait times and simplified procedures contribute to a positive impression of your company, ultimately resulting in higher conversion rates and a stronger customer base.
Higher Agent and Employee Experience (EX): By automating mundane tasks and simplifying complex processes, Lightico IDP empowers agents with the tools they need to excel in their roles. This not only boosts productivity and efficiency but also enhances job satisfaction, leading to improved agent retention rates. With streamlined workflows and automated functionalities, agents can focus on high-value tasks, fostering a positive work environment and ultimately contributing to a more engaged and motivated team.
Demo: AI Origination Document Collection and Analysis Demo
The Business Impact of AI-Powered Digital Completion
