The Analysis News & Opinions
AI webinar highlights key considerations
Artificial significant benefits
intelligence (AI) can bring to the
management industry through increased efficiency at all stages of the process, according to a leading expert. Looking at the issue of blocked-order management, whilst
speaking on a
webinar run by HighRadius in association with CCRMagazine, Bill Sarda, manager – solution engineering, strategic accounts – EMEA at HighRadius, said that in a traditional form of credit management, 90% of orders would be released based on the judgement of an analyst. For example, a customer might regularly pay late, but to an acceptable degree to the seller. Even for the 10% there are remaining
bottlenecks, which raises the question of when AI can be used in a more predictive method of credit management. In terms of periodic credit review,
many parts of the process are suitable for automation, such as downloading reports from the reference agencies, inputting data from external sources into the model, and automatically updating scores and limits. This can take significant work from
analysts, but a significant number of small accounts can still be neglected for lack of time, and AI can help. AI can take into account both internal and
external factors, such as bankruptcies, shifts in credit ratings, and dips in the stock exchange, and can do this on an ongoing basis. Mr Sarda concluded that traditional
automation had seen a benefit of about 25% to 30%, whereas AI could see this move to 45% or 60%. HighRadius has itself seen one customer
reduce its onboarding time by an average of 67%.
Last month, figures from Cifas showed a significant increase in the use of false documents in mortgage applications. According to Cifas, mortgage fraud by
Stephen Kiely, editor of CCRMagazine,
said: “AI is a hugely important new issue for the industry, with the potential to bring greater efficiencies and productivity. The importance of AI can be measured in the increased focus that analysts can give to the accounts that actually matter. “Webinars are an extremely valuable
tool, allowing professionals to access the information and insight they need from the comfort and convenience of their office. “So we are delighted to have worked with
HighRadius on such an exceptional learning opportunity, to bring the industry useful information about one of the most important trends that is coming to this sector at the moment. “It is essential that the industry should stay
up-to-date on these topics because they offer such potential benefit that it seems inevitable that they will increasingly become a very commonplace part of the credit professional’s portfolio of tools.” l To view the webinar online, then please visit
www.highradius.com/uk/ resources/webinars/
production of a false document has increased by 14% in the first six months of 2019 compared to the previous six months, while fraud by submitting altered documents has risen by 32%. Mortgage applications may not traditionally
be the area you would associate with fraud; this significant increase shows that it is a vulnerable sector of the market. And, while lenders and brokers will never
stop people trying to commit fraud, they can stop them succeeding by ensuring their Know Your Customer processes are fit for purpose. All mortgage fraud – whether that is to
exaggerate income to get a better deal, or for more sinister reasons such as money laundering – has been perpetrated on the back of forged documents, but there has never been a fraudulent case linked to electronic verification. That is because electronic identification
offers the most efficient and reliable way to check if someone is who they say they are and their documents are real. Banks and other lenders should be looking
to switch to electronic verification now, not only because it will help put a stop to mortgage fraud, but because in January the Fifth Anti- Money Laundering Directive comes into force and stipulates that electronic verification should be used by regulated sectors wherever possible.
Martin Cheek Managing director, SmartSearch
credit- Opinion
A response to statistics on the rise in mortgage fraud
October 2019
www.CCRMagazine.com
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