Making Insight Actionable with Machine Learning

In recent years, you may have heard of “machine learning” being used for everything from diagnosing diseases to writing screenplays. But what is machine learning, and how does it work? Read on to understand the value of this emerging technology and how NestReady is using it to help financial institutions provide a seamless, end-to-end homebuying experience.

What is Machine Learning?

Put simply, machine learning (ML) is an area of artificial intelligence that enables computers to learn, make predictions, and draw conclusions without being explicitly programmed. Software solutions using ML technology have become increasingly important, and are expected to contribute to a $100 billion market by 2025.

By performing tasks previously reserved for humans, machine learning enables businesses to operate more efficiently and generate more revenue. In fact, a 2017 MIT survey found that 30 percent of businesses using ML technologies reported more efficient internal processes, while a Deloitte study found that the ROI of adopting ML technologies ranges from around 2 to 5 times its initial cost after just one year. In the banking industry, ML technologies have the potential to boost revenues for financial institutions by as much as 30 percent, and reduce costs by at least 25 percent. 

NestReady’s machine learning technology enables lenders to generate more qualified mortgage leads, drive conversion, and retain their portfolio for long-term growth.

Generating Mortgage Leads

Across all industries, companies that have adopted ML are seeing an average increase in leads and appointments of more than 50 percent, which accounts for 40–60 percent of total cost reductions. NestReady’s NestFinder platform illustrates how ML can help financial institutions use behavioral data to connect with more qualified leads where they spend their time.

NestFinder integrates a turnkey, white-label real estate search platform directly into lenders’ websites, offering clients a convenient one-stop-shop home buying experience. In turn, NestReady’s machine learning algorithm analyzes users’ origins and behavior (both online and offline) to identify the mix of actions and characteristics that correspond to the most motivated and qualified mortgage leads. Armed with these insights, loan officers can tailor their marketing efforts to reach out to the right prospects, with the right message, at the right time.

Increasing Mortgage Conversions

Of course, generating more leads is just the first step in using ML technology to drive more business. To truly move the needle, financial institutions also need to convert more leads into clients. 

NestReady’s machine learning models provide predictive analytics and actionable insights to help lenders increase their conversion rates. Using insights from NestReady’s ML technology, Oracle provides visibility into the customer lifecycle, and can predict when a homebuyer will purchase their first property, relocate to a new city, or become a renter. Oracle integrates directly with a financial institution’s CRM software of choice to suggest and automate follow-up actions, helping loan officers take the right actions to convert more clients.

Improving Customer Loyalty and Portfolio Retention

Acquiring a new customer typically costs between 5 and 25 times as much as it does to retain an existing customer. With that in mind, NestReady’s NestEngage platform uses ML technology to help financial institutions stay connected to past clients in order to drive future business and minimize churn. 

NestEngage provides each borrower with a unique home profile page that features market trends, neighborhood insights, and other homeowner tools to help them monitor the value of their home over time. The platform then uses machine learning to identify when a client is ready to refinance, sell, or buy another property. In addition, NestReady’s ML-driven portfolio monitoring system notifies lenders as soon as a home they financed goes on the market, ensuring that they’re the first professionals to reach out for renewal or a new mortgage. Finally, lenders receive instant updates about clients’ home sale status straight to their preferred CRM, helping them stay up-to-date.

 

To learn more about how NestReady’s machine learning software helps mortgage lenders convert and retain more clients, you can get in touch here. You can also follow us on Twitter, Facebook, or LinkedIn for product updates, industry news and more!