United Bank is using fintech Finastra’s AI-powered mortgage lending tool to improve the application process for borrowers. 

The new data tool, Data Insights 2.0, supports the fintech’s Originate Mortgagebot, an AI platform that allows customers to see rates, products and fees when completing loan applications. 

Using the data collected by the tool, United Bank updated its mobile app this year, Brenda Stoerkel, vice president and mortgage division manager for the the $7.7 billion bank, told FinAi News.

The bank declined disclose the cost of the tool. 

The updated tool, which is still in beta testing, evaluated where customers were spending the most time during the application process and added information to those sections to help guide them, Stoerkel said. 

She said the tool is simplifying complex processes for customers. 

“After we updated our site, we noticed improvements with our conversion rates immediately,” Stoerkel said. “We went from 48% to 69% very quickly.  We are currently at 83.67% for June, which is outstanding.” 

The bank did not disclose how many mortgages it originates on average each month. 

More AI tools 

In addition to identifying when borrowers abandon applications, the tool launched in June also tracks conversion rates, channel performance and demographic trends, Thomas Orr, senior product analysis specialist at Finastra, told FinAi News. 

Finastra is planning to implement a second phase of the tool this year, keeping a human-in-the-loop approach throughout, Orr said. 

Finastra will use the data from its clients to provide recommendations and strategies for addressing friction points, Orr said. 

Data Insights 2.0 compares clients with more than 1,000 mortgage originators, according to the release. 

United Bank also has implemented a program within Data Insights 2.0  to stop duplication of liabilities in the bank’s loan origination system, improving lender efficiency, Stoerkel said. 

Finastra works with 40 of the world’s top 50 banks, but its insights product also caters to smaller banks and credit unions, Orr said. 

FIs that use Finastra’s services include: 

• $1.7 billion Beacon Credit Union; 

• $3.5 billion Cache Valley Bank;  

• $1.2 trillion ING Bank; and 

• $1.2 trillion Lloyds Bank. 

“Finastra’s position serving both ends of the market is a genuine advantage: insights we see at scale inform product development across the portfolio,” Orr said. 

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