Monmouth, Illinois-based Midwest Bank is partnering with AI lending platform Lendsmart to scale its digital lending and home-buying options for customers.
The partnership will aid an efficient journey for customers by streamlining the process of acquiring a loan to buy a house, according to a statement from Lendsmart.
It will also seek to minimize lender risk and reduce operational costs.
“Our business was built on the relationships we have with our customers, and partnering with Lendsmart will allow us to offer them a superior experience when it comes to applying for a loan or moving into a new home,” said Chris Gavin, president and CEO of Midwest Bank.
Lendsmart digitizes much of the home-buying process, using Artificial Intelligence to accelerate steps in the mortgage application journey, resulting in instant approvals.
“With our technology, we’ll be able to help Midwest Bank significantly reduce loan origination processing time to close more loans and improve the borrower experience,” said AK Patel, founder and CEO of Lendsmart.
Increasingly, both large and community banks are investing in digital technology. In February, a study published by Capco and Wipro FullStride Cloud Services, revealed financials were preparing to increase investment in cloud technology over the next two years to boost revenue.
It found 62% of financial services executives believe deploying technology will improve financial performance, while 52% think it will drive future growth.
According to research, Generation Z tends to trust larger banks with greater resources and security with protecting their finances and information, although community banks can appeal to them by investing in shielded payments technology.