AI phone systems are transforming how commercial loans are processed, cutting approval times by 40% and reducing errors by 30%. They automate communication, verify information in real-time, and provide 24/7 multilingual support, making the process faster and easier for both lenders and borrowers. Key benefits include:

• Faster Approvals: Loan processing times reduced by nearly half.

• Fewer Errors: Manual mistakes cut significantly.

• Higher Completion Rates: Abandonment rates drop by 30% with automated follow-ups.

• Cost Savings: Lenders save up to 60% on staffing costs.

Over 85% of small business loan applications remain incomplete due to lengthy processes and manual steps. AI phone systems address this by automating follow-ups, simplifying data collection, and integrating with CRM platforms to ensure smooth workflows. Lenders using these tools report higher customer satisfaction, faster loan cycles, and increased ROI.

Quick Tip: To boost loan submissions, combine AI-driven calls with human expertise for complex cases, use multilingual support, and track metrics like completion rates and processing times.

Agentic Process Automation for Loan Processing in Banking

Main Obstacles in Application Completion

Over 85% of small business loan applications are left incomplete, making this a major challenge in the lending industry. Let’s break down the main reasons behind these high abandonment rates.

Why Applications Get Abandoned

If completing a loan application takes more than five minutes, abandonment rates jump by over 60%. Among younger applicants (ages 18-34), 22% quit due to overly complicated processes.

Here are some of the main hurdles:

"A lot of small businesses when you request a bunch of stuff in an email or you just say 'give me these things,' they may not have the financial background, that financial education to know how to answer those questions."
– Alexandra McLeod, CEO and co-founder of Parlay

Tackling these issues is critical to improving completion rates and creating more efficient loan processes.

Effects on Lenders and Borrowers

Abandoned applications hurt both sides of the equation. For lenders, manual verification errors range from 6.5% to 10%, which impacts credit assessments, drives up costs, and damages trust.

For borrowers, the consequences include delayed funding, frustration with complicated requirements, and a 78% higher denial rate for younger applicants. These delays can lead to cash flow problems, especially for small businesses.

"Our research highlights a clear access issue amongst younger generations trying to borrow. Not only are a significant amount wrestling with cumbersome application processes, they're also being rejected for loans based on factors that suggest blinkered financial assessments."
– Jack Spiers, Banking & Lending Director at Tink

Small regional lenders, which hold 70% of commercial real estate loans, often rely on outdated processes, making it even more crucial to simplify applications and improve accessibility.

AI Phone Calls: Solutions to Application Problems

Modern AI phone systems tackle common challenges in loan application processes by blending automation with personalized support. This approach helps keep applicants engaged and reduces drop-offs.

Automated Communication Systems

AI phone agents revolutionize follow-up processes by automating tasks while ensuring precision. This combination makes the system more efficient and reliable.

In addition to being available all the time, addressing language barriers is a key factor in reducing application abandonment.

Multi-Language Support and Custom Guidance

Tailored communication is essential for meeting the needs of diverse applicants. Modern AI systems use advanced multilingual capabilities to overcome language barriers, which has been shown to boost customer retention by 20%.

For example, Convin's AI system can effortlessly switch between Hindi, English, and Hinglish. It verifies applicant details, asks specific follow-up questions, provides step-by-step instructions, and adapts explanations to individual needs.

CRM and Platform Integration

Seamless integration with CRM and other platforms ensures smooth data flow and reduces errors. Phonecall.bot is a great example of this, supporting over 20 CRM and calendar systems.

Here are some of its key features for commercial loan processing:

These integrations ensure smooth communication and accurate data handling, keeping borrowers engaged and the process running efficiently from start to finish.

Tips to Increase Submission Rates Using AI Calls

Planning Automated Follow-ups

Set up AI-driven calls to maintain regular communication with applicants. Tools like Phonecall.bot's AI agents can manage detailed conversations while collecting all necessary information.

For example, Casca successfully reduced their loan cycle times by 5 days by automating KYB checks and credit analysis. This kind of structured follow-up integrates seamlessly with broader AI-driven workflows.

Data Collection and Management

Consistent follow-ups are only effective if paired with solid data management. AI phone systems need to gather data efficiently while staying compliant with strict regulations.

"Given the scale of call centers' interactions, the potential for non-adherence is high. Without the right approaches in place, call center compliance can easily become a difficult business process with costly risks." - Qualtrics

Key compliance practices to follow:

• Data Protection Framework: Use protocols that meet standards like PCI DSS and TCPA to safeguard sensitive information.

• Quality Management System: Utilize AI monitoring tools to review interactions, flag compliance issues, and provide real-time coaching or resolution workflows.

• Privacy Controls: Clearly explain how data is used in privacy notices, maintain human oversight for complex decisions, and securely destroy data when no longer needed.

Human Support Integration

Pairing AI with human expertise creates a balanced system. While AI handles routine tasks, humans step in for more nuanced issues.

Configure your system to alert human agents for cases like multiple verification failures, unique credit situations, special requests, or high-value applications. This hybrid approach ensures applicants receive the right level of support while keeping the process efficient and personalized.

Success Measurement and ROI

After improving operations, it's essential to focus on measuring success and calculating ROI accurately.

Key Metrics to Track

To gauge the effectiveness of AI-driven phone calls, keep an eye on these KPIs: application completion rate, conversion rate, average application cycle time, and cost per loan originated. These metrics not only highlight operational efficiency but also help pinpoint areas causing delays. For instance, PeoplesChoice Credit Union simplified its process into three steps, doubling its application completion rate and boosting funded loans by 102%.

"PeoplesChoice embarked on a journey with SavvyMoney to transform our members' borrowing experience. By greatly simplifying the process, we doubled our application completion rate and positioned ourselves to compete with FinTechs and other online providers. Embracing the simplicity of the deployment and the application process was the key to increasing our loan volume." – Dan Dallaire, Chief Operating Officer

These metrics provide a clear picture of how AI integration can deliver cost savings and improve efficiency.

Evaluating Cost Savings

ROI assessment should include both direct financial gains and indirect benefits. Reports show some companies achieving a 13% ROI on AI projects - well above the 5.9% industry average. For example, DirectMortgage saw loan approvals speed up by 20× and cut processing costs by 80% with AI.

When calculating investment, consider these categories:

• Technology: Capital expense

• Infrastructure: Capital expense

• Training: Operating expense

• Maintenance: Operating expense

One wealth management company reported impressive outcomes: a $6.7 million reduction in operating costs, 166,000 fewer manual calls, and a 5% boost in customer experience scores. By tracking both numerical data and customer feedback, businesses can refine processes and maximize the value of their AI investments.

Conclusion: Improving Loan Processing with AI

AI-powered phone calls are transforming loan processing by automating communication and ensuring accurate data collection. With AI phone agents, lenders have seen loan approval times decrease by up to 40% and errors cut by 30%, thanks to precise verification and focused follow-ups. These results make a strong case for lenders looking to adopt AI-driven solutions.

How to Start with AI-Powered Calls

To successfully incorporate AI phone calls into your loan processing workflow, focus on these key areas:

• System Integration
  

  Connect AI platforms, like Phonecall.bot, with your existing CRM to ensure smooth data transfer and operational efficiency.

• Compliance and Quality
  

  Set up AI agents to adhere to data regulations while delivering high-quality interactions. They should accurately verify applicant details, evaluate eligibility, and systematically gather essential information.

• Performance Monitoring
  

  Regularly analyze metrics such as approval times, error rates, and completion rates to fine-tune the system and enhance its effectiveness.

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