Fintech firm unveils AI-powered mortgage broker

British fintech firm Nuvo has unveiled what it claims is the world’s first ever artificial intelligence-powered mortgage broker. First trailed in February, the system is now live.

According to the company, its new chatbot platform can help consumers find the most affordable mortgage within fifteen minutes by tapping into both internal and external APIs.

The chatbot is aimed at providing an easy and efficient customer journey, by harvesting data quickly and securely from a variety of sources, according to the company.

Quick answers

Thanks to integration with Open Banking PSD2, the chatbot aims to slash fact-finding times by taking data from trusted sources, such as the Office for National Statistics.

It is also able to tap into property insights data to provide customers with accurate mortgage rates. Nuvo said its platform “allows for seamless transfer of data between the various systems required by brokers to source a mortgage”.

Not only does the software provide expert, tailored advice, but it also analyses mortgage applications to ensure that customers never end up confused, according to the company.

Nuvo said that it’s on a mission to disrupt the mortgage industry by “breathing new life into a previously obsolete and lengthy process” and “forcing financial services to become more aligned with digital advances”.

Easy-to-use system

As well as the ability to apply for a mortgage quickly, the chatbot can also function as a mortgage calculator that gives house-hunters “a feel for their options in less than a minute”.

The firm said its chatbot “allows customers to ask questions at any point during the mortgage application process”, meaning they can get accurate information and advice almost instantly.

Users can view and compare search results to find the most relevant deal, before making a final decision. Nuvo said this eliminates the “need for a traditional broker”.

Transforming the financial sector

Richard Hayes, co-founder and CEO of Nuvo, said the chatbot is about helping a new breed of consumer to find their perfect home.

“Millennials now expect to be able to transact digitally. Whether searching for a first mortgage or looking for a hassle-free remortgaging process, the mortgage sector so far has not been able to innovate to meet the demands of the customer. Nuvo seeks to change that,” he said.

“First-time buyers, who are often millennials, accounted for 28 percent of the mortgage market last year. The shift in customer expectation, coupled with our talented tech team, has converged to allow us to create the 15-minute decision, and our introduction of the Fast-Time Buyer [sic].”

Internet of Business says

The introduction of tools such as this may be a boon to time-poor customers whose use of mobile devices has reduced the time they wish to devote to online tasks. Consumers increasingly want to move faster, and have less and less patience with processes that introduce friction or delay gratification.

In this case, Nuvo should be congratulated for using trusted data sources, such as the ONS.

However, the increased use of AI in public-facing services must come with a caveat – in general terms – in this first wave of mass popularity: transparency and trust are essential. Where data is sourced from, by whom, and for what purpose will be critical questions. Do AI services give preference to one provider over another, for example? Where is data sourced from, and why?

These questions apply to a range of connected devices and services too. For example, if a shopper orders something via an Alexa-powered device, why might one product be more favoured than another, or appear first in the list? Are retail platforms open and fair, or might they be introducing bias towards favoured partners or suppliers? Fans of friction-free commerce may not care, but that may be part of the problem.

And for marketers, many now have to play the algorithm game to compete for the attention of machines, rather than impressionable humans.