Datanomers: Automated Underwriting for Loans: The Next Frontier

Automation of underwriting for commercial loans or insurance

Identifying and qualifying lead opportunities and then underwriting loan applicants, is a tedious process of gathering information, processing applications, asking for more information where required, and reviewing it again, to make a decision. There are several FRP products - two of which are FRP-Productivity and FRP-Predictive. FRP-Productivity helps automate this tedious process partially by collecting relevant information automatically from public (the Internet) and private (the intranet) sources. This reduces the underwriting expense by about 10-15 percent, which is a significant saving. FRP-Predictive’s machine learning analyzes applicant’s financials and Internet data to predict loan outcomes to reduce your defaults 5-15 percent.

Better loan decisions

Banks and non-banks lend trillions of dollars annually and can sustain losses due to default and fraud as high as 10 percent or more. Not only do these losses impact the bottom-line directly, but lenders are also required to tie up precious capital in loss reserves. What if this tremendous drain on business could be lifted? FRP Predictive uses conventional financials plus internet data to make better decisions about lending to healthy commercial entities. Typically, it reduces defaults by 5-15 percent, which potentially amounts to hundreds of billions of dollars globally.

Could you please cite one or two case studies on how you have enabled clients to overcome hurdles and attain desired outcomes with your innovative solution?

Banks—big and small—and insurance majors have benefitted immensely from FRP’s FinTech ecosystem. For example, a medium-sized bank, headquartered in NYC, uses FRP’s scores to help make better lending decisions. Datanomers adapts its solutions to fit a customer’s process so that the CIO of the organization doesn’t have to spend a lot of effort in integration. This was a big advantage for this customer. We engineered the solution to fit at the tail-end of the process, where FRP-Predictive’s expert guidance on loan outcome helped the company lower their default rates. The test and turn-up process was so seamless that this customer is exploring other AI solutions from our portfolio. A Canadian bank, with a large North American footprint, is deploying FRP-Productivity for automating the underwriting process.

What does the future hold for your organization? Any footprint expansion plans or platform enhancement strategies that you can shed light upon?

Datanomers is a Technology company with innovative FinTech Applications. We constantly think about applying our technology to other use cases and industries to solve problems. For example, we are working with two major commercial insurance companies to automate risk assessment. Through our NLP technology, they have streamlined and simplified risk assessment by merely uploading survey risk reports, which is a large document about 100-150 pages.

Our Insurance Risk Profiler identifies and highlights key information about the financial risks associated with an applicant, helping the underwriters determine and establish a risk profile for them. It also predicts whether a company should insure the applicant or not. This helps them with significant productivity gains and cost savings through automation.