Loss mitigation is a term used by lenders to mitigate their losses, meaning they reduce them. If you are in the business of bearing default risk, if you can reduce the cost of defaults, then you can have a more profitable business regardless of the level of defaults.
The Use Of Technology For Loss Mitigation Customer Experience
In this modern era where everything is accessible at the click of a few buttons, the homeowners expect that easy access too. The information regarding the financial services should be received by them on their laptops, smartphones, tablets, etc. With the implementation of digital technology, the loss mitigation service providers will be able to deliver the best customer experience possible with successful business operations
The Use Of Data In Loss Mitigation
Data-driven technology companies are steadily outpacing traditional retail energy and healthcare industry leaders to name a few. Businesses worldwide recognize that data gives them a competitive advantage and are embracing digital transformation.
But today’s data revolution didn’t happen overnight. In its first wave, digital transformation tackled the challenges of data collection and storage. With the advent of IoT and cloud infrastructure, companies gathered unimaginable volumes of customer data.
Forbes estimated that on average, businesses generate around 2.5 quintillion bytes of data every day. Yet the result was a data mass of mostly unstructured and unusable data. In order to derive value from the big data, businesses turned to newer technologies to find patterns to make correlations, and take action on ad-hoc data.
The current wave of digital transformation focuses on data operations or data ops. A set of practices that bring speed, agility, and compliance to an organization’s data processes. This lets businesses gain insights from their data faster and more efficiently.
According to industrial research, agile data practices deliver greater business focus and increase overall growth by 20 percent.
Digital Technology Supports The Loss Mitigation Workflow
The implementation of digital technology is very astonishing than it may not seem. It will be highly beneficial for both the loan servicers and homeowners. As it saves tons of time and money for loan servicers and gives transparency to homeowners’ experience. Following are the ways digital technology supports the loss mitigation workflow:
1. Better Communications
Implementation of digital technology enables the loan servicers to simply the complex challenges that come in the process of loss mitigation by connecting the homeowners in new, positive, and productive ways. Enabling better communication involving signing, notarizing, collection of data, etc.
2. Increases The Efficiency
With the help of digital technology, the service providers will enable in staying in compliance with rigid deadlines and improving the application turnaround times. The digital transformation will support the customers in real-time. This will enable you to maintain your work process shipping costs, minus the wait times and other complex points arising through manual work.
3. Reduces The Operational Costs
Digital technology enables in reduction of the tons of operation costs involved per transaction in maintaining mail, shipping, paperback, and fourth. In addition to this, by implementing digital technology, you also contribute to reducing the global paper demand and saving the environment.
Conclusion
To sum up, the implementation of digital technology in loss mitigation has plenty of benefits, which few have mentioned above in this blog. Still, it will be correct to state that the implementation of digital technology in loss mitigation is a win-win situation for both parties. The servicers, as well as the customers both, will benefit from technology.
Are you looking to implement digital technologies into your loss mitigation? If yes, so, please feel free to contact us at support@aeologic.com
