Tavant’s Sandeep Shivam: How Gen AI-Powered Coaching Revolutionizes Mortgage Servicing
Sandeep Shivam, AMP, is Product Evangelist and Associate Director with Tavant
Research indicates that U.S. call center services typically cost between $26 -$30 per hour for standard support. That number rises for organizations requiring more specialized assistance to $30 – $50 per hour. For mortgage servicing operations, the cost per incoming call managed by a customer service representative (CSR) is significant and a major contributor to lower customer satisfaction levels. Additionally, many customer calls are not resolved on the first call but instead result in the creation of a ticket to be resolved later.
As a result of the increasing costs and negative customer experiences reported, mortgage servicing companies are seeking technology solutions that leverage artificial intelligence (AI) to more effectively answer customer questions and resolve incoming customer inquiries. Intercom’s State of AI in Customer Service report indicates three-fourths of business leaders say they are planning to escalate their AI investments, as they see its potential to redefine customer service and many other business functions. As a result, mortgage operations have increasingly introduced AI-powered chatbots as more cost-efficient tool to resolve customer inquiries.
A recent J.D. Power report highlights the prevailing customer sentiment and emerging trends in AI-powered customer service. One of the biggest barriers to adoption of AI-powered customer service solutions is customers’ perception of online chat. Early iterations of chatbots left many customers feeling like they were simply wasting their time. The reported customer satisfaction levels with early versions of AI chatbots were mixed and most reported a much higher level of satisfaction when they interacted with a human. When speaking to a CSR, customers’ conversations felt more genuine and amiable. Chatbots lacked subject matter expertise and empathy toward customers. This raises the question: Is AI the right solution?
When implemented strategically, AI is indeed the right solution. Here are some early focus areas and methods for using an AI coach in the mortgage servicing industry.
AI-Powered CSR Coach:
Currently, when a mortgage servicing CSR receives a borrower call, they listen to the questions or concerns and then refer to their manual for potential resolutions. If the CSR cannot solve the issue, the call is transferred to a manager or another team, or a ticket is created to resolve the concerns later. This process occurs because CSRs typically have expertise limited to specific areas and are not well-versed in all aspects of mortgage servicing. This creates inconvenience for the customer, as their issue is not resolved immediately, and increases costs for the mortgage servicer due to the additional human resources required to solve the problem.
An AI-driven CSR Coach, an AI assistant designed to support CSRs, presents a potential solution to this challenge. When a customer calls, the AI-powered CSR coach listens to the customer’s concerns and provides the CSR with a response to share with the borrower. These responses are generated using large language models (LLMs). Additionally, the AI coach can perform actions within the system to save time for the CSR (e.g., emailing a receipt for a payment).
These enhancements increase efficiency and ensure a better customer experience while reducing costs for the mortgage servicer. Some areas where an AI-powered CSR Coach can be leveraged include:
• Information Need: When a borrower inquires if their last payment was processed, the AI Coach can quickly retrieve that information for the CSR. If the payment did not go through, the AI Coach can identify the reason and display it for the CSR to explain to the borrower.
• Customer Request: Suppose a borrower wants to schedule a payment. The AI Coach can prompt clarifying questions before taking the payment details. Once the borrower provides the necessary information, the AI coach will capture it in the system and provide a confirmation for the CSR to relay to the borrower.
• Document Request: Consider a scenario where a borrower asks for a payoff statement. The AI Coach will prompt the CSR to ask for the payoff date. Upon receiving the date, the AI coach will suggest sending the payoff letter to the borrower’s registered email address. Once the borrower confirms, the AI Coach can generate the payoff letter, email it to the borrower’s email address, and notify the CSR upon completion.
• Account Services: Borrowers may request actions such as unlocking their account, setting up alert preferences, or receiving statements by mail. The AI Coach can listen to the borrower and assist in performing these actions, and the CSR can simply confirm the completed actions to the borrower.
• Process Information: If a borrower’s inquiry calls for the process of changing their insurance provider mid-year, the AI coach can quickly reference the servicer’s manual and provide the necessary information for the CSR to communicate with the borrower.
The AI Coach can generate documents requested by the borrower (e.g., an Escrow Statement). Additionally, the CSR does not need to be an expert in all areas of servicing; instead, they can rely on the system to promptly respond to customer inquiries. This approach saves time for both the borrower and the CSR, providing quick resolutions and reducing servicer’s cost.
Now let’s examine how this AI-powered coach can assist the borrower.
Borrower Coach with Digital Experience: Most mortgage servicing companies offer digital platforms to their borrowers. Integrating a Borrower Coach into these platforms can be highly beneficial. This AI-powered system allows borrowers to either speak or type their queries. Here are some ways in which the Borrower Coach can be a great help:
• Navigate to the Right Screen: Digital platforms have number of screens, and borrowers may not always know where to perform certain tasks. For instance, if a borrower says, “Help me add a bank account,” the Borrower Coach can guide the user to the appropriate page and provide instructions on how to add a bank account.
• Get Documents: Beyond navigation, the Borrower Coach can also assist in retrieving documents. If a borrower requests, “Show me last month’s mortgage statement,” the coach can display the mortgage statement PDF on the screen.
• Provide Analysis: Borrowers often notice changes in their monthly payments and want to understand the reasons behind them, which typically results in calls to customer service. The Borrower Coach can assist in such scenarios. If the monthly payment changed after an escrow analysis, the coach could detail the changes to the borrower.
• What-If Analysis: The Borrower Coach can address questions such as, “What happens if I pay an extra $200 as part of my monthly payment?” or “How much interest will I save?” It can also help determine whether refinancing is more beneficial compared to continuing with the current loan.
• Timeline Information: The Borrower Coach can facilitate by answering questions like, “When will I stop paying mortgage insurance (MI) on my loan?” or “how much payment I should make to get rid of MI on the loan?”
• Borrower Education: The Borrower Coach can enlighten borrowers on various topics related to loan servicing. As an example, it can provide information on the types of hardship assistance that lenders offer if the borrower is experiencing challenges.
These AI-driven Coaches (Borrower Coach or CSR Coach) are not about replacing CSRs; rather, they aim to assist CSRs in resolving customer queries faster, leading to greater customer contentment. Borrowers receive quick resolutions while interacting with a human and maintaining a personal experience with the mortgage servicing company. The Coach provides a perfect solution where the human element offers empathy, and the AI delivers speedy resolutions.
(Views expressed in this article do not necessarily reflect policies of the Mortgage Bankers Association, nor do they connote an MBA endorsement of a specific company, product or service. MBA NewsLink welcomes submissions from member firms. Inquiries can be sent to Editor Michael Tucker or Editorial Manager Anneliese Mahoney.)
