Sed ut perspiciatis unde. Process Transformation through Process Mining in Mortgage IndustryThe key driver for the growth in the mortgage industry is customer satisfaction fueled by faster service and competitive time to market. The challenges with mortgage industry are heavy documentation, timely decisioning, and compliance with strict regulatory guidelines. The mortgage industry also have time taking processes such which are handled either internally or outsourced to external vendors for example, property assessment, insurance, assessment of property damage.  It is time to review their business processes and streamline to stay ahead.Process mining is becoming a game-changer in a quest to bring process transformation by revolutionizing the way companies operate and serve their customers. Process mining applies data science to discover process map, analyze inefficiencies across IT systems used to run business, and improve workflow of processes.  Financial institutions can use the event logs from their information systems to get X-ray views of business processes and associated manual activities, system performance and apply analytics to identify bottlenecks and other areas of improvement.Process Mining helps analyze and identifies frictions, bottlenecks, and inefficiencies from the footprints of such complex processes and associated manual activities in the workflow. Like many other lines of business, the mortgage industry is facing increasing pressure to streamline operations, reduce costs, enhance customer experience, and ensuring compliance with ever-growing complex regulatory reporting.  Process mining offers a fresh perspective on achieving these goals by providing a data-driven and analytical approach to understanding, optimizing, and transforming mortgage processes.Below are key areas that business managers should consider while adopting process mining. What can we achieve? Key KPI’s addressed by Process MiningProcess mining can help mortgage companies address various key performance indicators (KPIs) by providing insights and data-driven solutions. Below are some KPIs and use cases in the mortgage industry that can be improved and explored through the application of process mining.1. Loan Processing Time: Insights using process mining:Process mining identifies bottlenecks, delays, and inefficiencies in the loan origination process. By streamlining and optimizing workflows, mortgage companies can reduce processing time, leading to faster loan approvals2. Cost per Loan:Insights using process mining: Process mining can pinpoint cost drivers within mortgage processes. By optimizing resource allocation, reducing manual work, and eliminating redundant tasks, organizations can lower the cost per loan.3. Application Rejection and Turnaround Time:Insights using process mining: Process mining can identify patterns of rejected loan applications. By analyzing these patterns, mortgage companies can refine underwriting criteria, improve communication with applicants, and reduce rejection rates. By automating document verification and reducing manual handling, organizations can accelerate the verification process.4. Compliance Adherence:Insights using process mining: Mortgage processes must adhere to numerous regulatory requirements. Process mining helps identify deviations and non-compliance issues, allowing organizations to proactively address them and reduce the risk of regulatory fines.5. Optimum Resource Utilization and Loan Origination Costs:Insights using process mining: By identifying inefficiencies in the loan origination process, process mining helps reduce the costs associated with acquiring new loans. Companies can use this information to optimize resource allocation and reduce over- or under-utilization. This includes cutting down on administrative work and reducing the need for rework due to errors. What can ensure the successful process transformation?Process transformation does not happen alone by utilizing process mining tools – they provide the first view to improve inefficiencies.  Transformation is the automation of manual tasks throughout the processes.  Organizations should consider following in conjunction with process mining to ensure complete action on eliminating inefficiencies. In summary, process mining provides mortgage companies with valuable insights and tools to address key performance indicators.  By optimizing processes and adopting digitalization and automation, mortgage organizations can achieve better outcomes in a highly competitive and regulated industry.  It enables mortgage companies to unlock the value of their data, improve efficiency, reduce costs, enhance compliance, and reduce time to market. This blog is co-authored by Sivasakthi Dhandapani ( Solution Architect at Tata Consultancy Services)Source link Save my name, email, and website in this browser for the next time I comment.By using this form you agree with the storage and handling of your data. * Δdocument.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() );Tech dedicated news site to equip you with all tech related stuff.I agree that my submitted data is being collected and stored.✉️ Send us an emailTechToday © 2023. 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