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The saying “work smarter, not harder” applies to implementing AI into mortgage lending. The multifaceted abilities of today’s machine learning models allow brokers to automate repetitive tasks and workflows. Embrace AI’s potential to take Australian brokerage performance to a new level in three essential areas.
1. Analyse buyer behaviour and offer tailored solutions
In a survey of over 500 financial advisers, 42 per cent would use generative AI to customise advice for each client. AI can take massive amounts of buyer data, sift through it, apply real-world market scenarios to each portfolio, and make recommendations based on past performance and personal preference.
Australian brokerage professionals will stand out from their competitors with more than the basic recommendations customers can get from any amateur blog. Instead, they can apply real-world scenarios to the portfolios and build strong, lasting relationships with those they serve.
Predictive analytics helps identify the most promising leads and matches customers to the firm’s specialisation areas. AI algorithms look at historical data trends and determine which leads have the appropriate income levels and credit scores for real estate investments.
2. Halt the churn
Customer retention rates should improve as the return on investment (ROI) increases. People want to know their money is secure and that their broker will help it grow. Some of the most impactful AI uses can increase ROI significantly. While companies are tapping into their power for various uses, 19 per cent are using it for churn predictions and to brainstorm retaining current clients.
Since customer retention boosts company revenue, perhaps more than acquisition, anything a brokerage professional can do to earn investors’ confidence benefits the firm. Using AI analysis for risk assessment can prevent big losses to clients’ investments and create more rapport, leading to brand loyalty. It is adept at watching for patterns and finding the subtle shifts in activity that may indicate someone is about to leave their current stockbroker. The system then alerts the professional, who can contact the client for follow-up.
3. Utilise the power of AI chatbots
As natural language processing capabilities continue to improve, chatbots can replace frontline customer service representatives to answer basic questions and offer some technical assistance. By studying data and figuring out where they need the most help, a business can program a chatbot to be useful to its clients.
When mortgage brokers spend less time answering people’s questions, they’ll naturally be more effective. Their time is better spent learning about new markets and methods of increasing the value of portfolios. When the buyer earns more money, the broker’s fees increase, so it’s a win/win situation for both them and the brokerage firm.
Using AI while maintaining privacy standards
While AI is a valuable tool for analysing data and improving customised options, Australian brokers must consider data privacy. If a brand can use AI, so can scammers. They are becoming better at tricking customers and accessing details that should be private.
Common forms of AI scams include phishing emails, fake videos, and chatbots. The person might have access to some customer data and use it to extract more by pretending to be a broker.
Mortgage experts must ensure they comply with the Privacy Act 1988. They can only collect personal data if they need it to communicate with clients and need to get their consent to do so. Consulting with a professional may save firms fines and headaches if they are uncertain about regulations.
AI data analytics can be a game changer
Australian professionals can add AI to their basic analysis for a more detailed and personalised look that improves outcomes. To remain competitive in a digitised market, these mortgage brokers must utilise predictive and generative AI to show customers where to invest their money and how to earn a profit.
Enterprises should consider what tools they use and how AI can fill any holes in the process. Lead scoring, predictive growth models, and identifying customers ready to leave are just a few ways brokers tap into AI’s power. The best tools integrate with what a workplace already uses and meet any regulatory requirements to help mortgage brokers and their clients embrace excellent ROI.
Devin Partida is the editor in chief at ReHack.