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RESEARCH REPORT
RESEARCH REPORT
ROI analysis
“The orchestration of human and artificial intelligence coupled with financial industry insights is a beautiful symphony. We can empower ourselves as consumers and empower those on the front line who support financial wellness experiences in every interaction.”
The Return on Investment (ROI) resulting from an AI implementation within the loan journey depends on variables such as:
• Number of underwriters • Number of processors • Number of support staff
• Loan application volume • Funded loan volume • Number of loan officers
Overall, we determined that there are significant efficiencies and cost savings throughout the value chain (see Figure 4). We estimate that automation and augmentation may provide up to 25% incremental ROI , and revenue growth of over 10% for banks and other lenders, depending on the size of the organization.
– Kristen Hein, Global Head, TTEC Banking and Financial Services Practice
Figure 4: ROI value levers Financial institutions can see efficiencies of speed, scale, and cost throughout the loan journey by leveraging AI at key moments of truth.
+
AI
200 hours approx.
Hours of manual labor saved daily
Reduction by 40%
Cost of loan origination
Reduction by 80%
Loan origination time
20% incremental
Loan origination volume
Reduction by 50%
Loan processing duration
Reduction by 70%
Document collection and setting duration
$5M approx. also depends upon the financial entity Reduction by 50%
Estimated cost savings
Overall operational cost
ROI generated
20-25% incremental
Revenue growth
10.70% Incremental
Source: TTEC
Beyond just a cost discussion, ROI can be achieved by improving qualitative metrics including customer satisfaction, customer retention, cross-sell/upsell, and customer loyalty.
10 | AI/CX VALUE CHAIN ANALYSIS: BANK LOANS
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TTEC.AI |
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