Resources

Glossary

AI - training computer systems to be able to perform tasks that normally require human intelligence

Auto lending - Auto lending is the process of applying for a loan to finance the purchase of a car.

Automated document processing - a machine learning model to extract data from documents.

Business process management (BPM) - the discipline of using various methods to discover, model, analyze, measure, improve, optimize, and automate business processes.

Compliance - conforming to a rule, such as a specification, policy, standard or law.

Consumer Lending - Consumer lending is the category of financing centered on individual and household consumers. It includes home and auto loans, as well as personal loans.

Consumer Financial Protection Bureau - The CFPB is a U.S. government agency dedicated to making sure you are treated fairly by banks, lenders and other financial institutions.

Community Reinvestment Act - The CRA, enacted in 1977, requires the Federal Reserve and other federal banking regulators to encourage financial institutions to help meet the credit needs of the communities in which they do business, including low- and moderate-income (LMI) neighborhoods.

Digital Transformation - the adoption of digital technology as part of change management in an organization. Common reasons to undertake an initiative are to improve efficiency, value or innovation.

Dodd Frank Act Section 1033 - Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act provides, among other things, that subject to rules prescribed by the Bureau of Consumer Financial Protection, a consumer financial services provider must make available to a consumer information in the possession of the provider concerning the consumer financial product or service that the consumer obtained from the provider.

Employment verification - the process of verifying a consumers employment status using documents such as W2s, paystubs, Military LES and SSI award letters.

Equipment financing - the process of applying for a loan to finance equipment which can be vehicles, factory machines, farming vehicles or any other equipment.

Financial statement fraud - deliberate misrepresentation of financial data to deceive the p lender in order to obtain access to more credit and/or better terms than they actually qualify for.

Funding Process - Also known as the Loan Origination process usually (but not always) consists of six steps: Pre Qualification, Loan Application, Application Processing, Underwriting,Credit Decisioning, Loan Funding.

HELOC - A Home Equity Line of Credit also known as a HELOC, is a line of credit secured by your home that gives you a revolving credit line to use for large expenses or to consolidate higher-interest rate debt on other loans such as credit cards. A HELOC often has a lower interest rate than some other common types of loans, and the interest may be tax deductible.

Human error - natural mistakes made by people undertaking repetitive tasks

Human-in-the-Loop - the process whereby humans double check and validate the results of OCR and/or machine learning models, adding cost and time to the data collection process.

Identity fraud - when an individual presents themselves as someone else using stolen, fraudulent or forged documents.

Income Verification - the process of proving your income in order to demonstrate eligibility for a loan. Generally this is accomplished by providing a paystub, W2, bank statement, military LES, or SSI award letter.

Loan origination system (LOS) - software that automates and manages the entire loan process. Beginning with the application, to underwriting, approval, pricing and funding.

Loan stacking - the process if of getting approved for multiple loans or lines of credit at the same time in order to reach some financial goal.

Machine learning - a type of artificial intelligence (AI) that allows software applications to become more accurate at predicting outcomes without being explicitly programmed to do so. Machine learning algorithms use historical data as input to predict new output values.

Optical character recognition (OCR) - a technology enabling computers to “read” text off of documents and turn it into into machine-readable data.It is usually priced per page and can be riddled with mistakes.

Regulatory Compliance - Regulatory compliance is an organization's adherence to laws, regulations, guidelines and specifications relevant to its business processes.

Robotic process automation (RPA) - the process of designing software to do human tasks which helps lenders accelerate the lending process and significantly increase revenue.

Underwriting process - the point in the lending process when the lender verifies the individuals income, assets, debt, credit and property to determine their eligibility.

As Featured in American Banker

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