Figure Technology Solutions Expands AI Capabilities for Loan Origination
SAN FRANCISCO, OCTOBER 2023—Figure Technology Solutions, the parent company of Figure Lending, has announced the introduction of a new generative artificial intelligence (AI) tool aimed at improving efficiency and reducing costs in loan origination. This development comes shortly after the company launched an AI-powered customer service chatbot.
The newly introduced tool, referred to as the "stare and compare killer," is designed to streamline document reviews, a task traditionally fraught with human errors, biases, and inefficiencies. Built on OpenAI's GPT framework, this tool leverages over six years of origination data to assist Figure's lending partners and customers in overcoming these challenges.
Figure claims that the tool has already shown a significant 93% improvement in manual upfront document review labor, which is anticipated to result in a reduction of more than $8 million in costs associated with loan origination. This reduction in manual processing not only eases the workflow for loan processors and originators but also enhances accuracy and satisfaction for both customers and employees.
Nicole Beaulieu, Chief Technology Officer at Figure, emphasised the importance of this advancement in a press release on Monday. "Our growing generative AI investment is a prime example of how Figure is building a technology platform to reduce costs and provide value to lenders and consumers alike," she said. Beaulieu noted that lenders are eager to reduce bias, lower costs, and eliminate manual work, making this AI-driven solution a critical asset.
Michael Tannenbaum, CEO of Figure, highlighted the company's broader vision, stating, "We consider our AI our lending partners' AI, so we designed it with them in mind – for their own funnels, processes, and customers. By lowering loan processing costs, we're lowering our product costs and thereby housing costs broadly."
Figure's platform, which facilitates the origination of home equity loans, currently collaborates with over 120 lending partners. So far, it has originated more than $11 billion of Home Equity Line of Credit (HELOC) loans, making it the largest non-bank provider in this sector. Tannenbaum also noted that the company's use of AI effectively positions them to address significant pain points in the lending process.
As Figure Technology Solutions eyes a potential public offering, these innovations underscore its commitment to leveraging advanced AI technologies to enhance the efficiency and customer experience in the financial services sector. The integration of such tools marks a notable shift towards more automated, precise, and cost-effective loan processing methods.
Source: Noah Wire Services