AI Transforms Mortgages: Approval in 10 Minutes

Commonwealth Bank of Australia announced a major success in utilizing Generative AI, leading to a 50% reduction in customer losses from fraud. The innovative technology also streamlined the preliminary approval process for mortgage loans, cutting down the waiting time to just 10 minutes.

By implementing features like Namecheck, Callercheck, and Customercheck, the bank managed to significantly reduce fraudulent losses. The introduction of an AI warning system also led to a 30% decrease in fraud cases reported by customers. Furthermore, the incorporation of AI in the bank’s application resulted in a 40% annual reduction in waiting times at call centers. Commonwealth Bank foresees AI being able to handle around 10% of the most intricate customer inquiries in the near future.

Bank officials highlighted that the integration of AI is still ongoing, with a shift from addressing immediate issues to boosting the overall profitability of the organization. Australia has already witnessed a decline in fraud cases, thanks to the collaborative efforts of banks and tech companies in combating criminal activities.

With over 50 AI scenarios developed within Commonwealth Bank, some of which have yet to be publicly unveiled, the focus in 2024 has been on creating the “most significant and effective solutions.”

AI is being leveraged to automate document completion for regular customers, slashing the time required for conditional mortgage loan approval to just 10 minutes, and trimming the annual reporting check for small businesses from 14 hours to 2.

Enhanced technologies are now scrutinizing over 20 million bank transactions daily, generating about 20 thousand alerts about suspicious transactions. This figure is expected to rise to 35 thousand in the near future.

To safeguard its AI systems, CBA has implemented 11 control mechanisms to mitigate risks related to inaccurate data or malicious activities. Moreover, the bank has committed to sourcing energy from renewable sources for its operations and data centers in Australia.

CBA continues to stand out as a frontrunner in AI advancements, being recognized in 2024 as the bank with the highest AI technology maturity in the Asia-Pacific region and securing the 2nd position globally according to the Evident AI index.