Automation for indirect loans is defined as using modern digital technology, such as robotic process automation (RPA) and/or artificial intelligence (AI) to process inbound loan applications to a bank from non-bank customers—typically those at a car dealership who need financing for their vehicle purchases.

At your bank, processing these inbound loan applications, even when they’re funded, takes a ton of time from your loan-operations staff. How much? We’ll tell you in a minute.

This is a classic opportunity for the type of banking automation defined above. That’s because, every day, your team must find, and sort through, a slew of new loan applications in one system, and then—you guessed it—manually transfer all of that data, field by detailed field, into another system.

Typically, the first system is the online loan origination system or LOS. And the second system is your bank’s core.

Compounding the problem is the sheer number of fields associated with an automobile purchase. There are things like the year, make, and model of the car. Its unique vehicle identification number or VIN. Its collateral value. The required insurance. And so on.

In this article, we’re going to show you how The Lab—North America’s banking automation authority—was able to recently automate the process of, well, processing inbound applications for funded indirect loans from car dealerships. We’ve even made a fast, fun video of the actual bot, which you can view right here:

Here at The Lab, we’ve created literally hundreds of banking bots for our clients, such as the risk-rating upgrade bot for nonperforming loans, and the adverse-action letters bot, which you can read about in the linked blogs.

For this one—that is, the indirect loan-application-processing bot—the activity which triggers its action actually happens outside the bank: It’s when a customer walks into a local car dealership and wants to purchase, and finance, a vehicle. At this time, the dealership’s sales rep will help them complete the online application into the loan origination system (LOS); these applications get sent directly to the bank.

And that’s when this bot gets to work.

Every day, the bot first logs into the bank’s intranet to get started. It logs in with its own username and password, just like a person. In fact, it will have a whole “keychain” of usernames and passwords because, just like a person, it will need to log into other systems as well.

From the bank’s intranet, the bot logs into the LOS. Important note: Banking bots from The Lab can use any LOS. They’re “LOS-agnostic.” So, while the bot in this example, and shown in the video, is using MeridianLink DecisionLender from TCI, know that bots from The Lab can use any LOS that your bank uses.

Once it’s in the system, the bot brings up all the applications, and then filters its results. It just wants to see those with the current date, and whose status is listed as “Funded.” Those are the ones that will need to be processed into the core.

Starting with the first funded loan, the bot then opens up the actual PDF application form which the customer had completed. The bot then reads and memorizes the entire thing. Every single field. So, while many people think that robotic process automation bots in banking are there solely to replace human effort, in many times, they can actually outperform humans, especially for low-level, repetitive tasks like this one.

Now the bot switches to the core. Again—we can’t stress this enough—banking bots from The Lab can work with any core your bank uses. It could be from FIS, Fiserv, or Jack Henry. In the video above, the bot is using XP2 from Fiserv.

Once in the core, the bot looks up to see if that applicant is already a customer of the bank. If so, that person’s record already exists in the core, so the bot will update it, instead of creating a new, redundant record. Pretty smart.

Whether the applicant is a new client or not, the bot then gets to work. It verifies all of the data. And if there are two applicants for the loan, the bot knows to use the higher credit score!

Working with the information it had memorized from the first application in the LOS, the bot then proceeds with its detailed work, at inhumanly fast speed. It fills out all the fields, including:

• Year
• Make
• Model
• License Plate
• Country Licensed
• VIN
• Source of Valuation
• Mileage
• Body Style
• Color
• Key Code
• Name on Collateral Title
• Seller’s Name
• Low Book Value
• High Book Value
• Current Collateral Value
• Verification Method
• Insurance Company
• Policy Number

…need we go on? This is just a small sampling.

Once it completes all the fields, it then moves all of the insurance and application documents to the proper folders in the bank’s shared drive.

And just like that, it switches back to the LOS, brings up the next application, opens the PDF and memorizes it, and keeps pounding away. It never slows down, takes a break, or even makes a typo, ever.

Once it’s done, it emails the bank’s loan team with a report of all its work, including any items it couldn’t process, which require human review.

Remember how we’d teased, earlier, that your people currently spend a lot of time on this clearly automate-able activity? Well, it turns out that a typical bank spends about 500 hours a year simply copying-and-pasting data from indirect loan applications into the core. That’s error-prone labor that takes a long time (negatively impacting customer experience) and is tedious and thankless (negatively impacting employee morale and turnover).

Don’t put your people on this task any longer. Automate it!

The best way to appreciate the speed and game-changing power of banking bots is to see it for yourself. We invite you to schedule your free, no-obligation 30-minute screen-sharing demo with The Lab. You’ll see real RPA bots in action. You’ll learn how we do all this from our U.S. offices in Houston, with nothing outsourced or offshored, and get all your questions answered by our friendly experts. Hedge your bank against employee turnover. Eliminate errors and resulting losses. Simply call (201) 526-1200 or email info@thelabconsulting.com to book your demo today!

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