Expense Classifier & Mortgage Request Automation Tool.

Overview

Project: Expense Classifier & Mortgage Request Automation Tool

Client: Fintech

Industry: Banking

Technologies Used: Machine Learning, Data Visualization, Mobile Application Development, Automation Tools

1. Background

In a bid to enhance customer engagement and streamline internal processes, our client sought to improve their mobile banking app by introducing an accurate expense classification feature. This tool would help users manage their finances more effectively by providing insights into their spending habits.

Simultaneously, the bank aimed to reduce the time-consuming nature of mortgage request processing. Traditional methods involved extensive manual data entry, leading to delays and decreased customer satisfaction. Automating this process promised significant improvements in efficiency and response times.

2. Objectives

• Enhance Financial Management for Users:
• Provide automatic categorization and tracking of expenses within the mobile app.
• Streamline Mortgage Processing:
• Automate the population of mortgage request forms using existing customer data.
• Reduce processing times and improve operational efficiency.
• Identify Financing Opportunities:
• Detect when financing or refinancing options would benefit both the customer and the bank.
• Ensure compliance with credit score requirements and regulatory standards.
• Generate New Revenue Streams:
• Create opportunities for additional income through mediation of loans and mortgages with partners.

3. Solution

To meet these objectives, we:

1. Developed an Accurate Expense Classification System

• Machine Learning Integration:
• Implemented algorithms to automatically categorize and group e-banking transactions.
• Trained the system on extensive transaction data to achieve high accuracy.
• App Integration:
• Seamlessly incorporated the classifier into the mobile app.
• Offered users clear insights into their spending through intuitive visualizations.

2. Automated Mortgage Request Processing

• Data Utilization:
• Used existing customer information to pre-fill mortgage request forms.
• Minimized manual data entry requirements.
• Process Optimization:
• Streamlined workflows to expedite approvals.
• Integrated automation tools with existing banking systems for smooth operation.

3. Implemented Financing Opportunity Detection

• Analytical Modeling:
• Created models to identify customers who could benefit from loans or refinancing.
• Factored in credit scores and financial behaviors to ensure responsible lending.

4. Established a Mediation Platform

• Partnership Development:
• Formed collaborations with external loan and mortgage providers.
• Developed a platform to mediate financial products, generating additional revenue.

4. Challenges

• Data Privacy and Compliance
• Navigated strict data protection laws while handling sensitive financial data.
• Implemented robust security measures to protect user information.
• Achieving High Accuracy
• Addressed the complexity of varying transaction descriptions and merchant data.
• Continuously refined algorithms to maintain over 95% accuracy in expense categorization.
• Encouraging User Adoption
• Ensured the new features were user-friendly to promote engagement.
• Collected and acted on user feedback to improve app functionality.
• System Integration
• Ensured compatibility with the bank's existing systems.
• Overcame technical challenges to prevent disruptions during implementation.

5. Results

• Improved User Experience
• Attracted over 1 million users in Germany to the enhanced app.
• Empowered users with better financial insights, aiding in personal finance management.
• Operational Efficiency Gains
• Significantly reduced mortgage processing times.
• Streamlined processes led to quicker approvals and increased customer satisfaction.
• Additional Revenue Generation
• Launched a spin-off platform for loan and mortgage mediation.
• Created new income streams through partnerships with financial service providers.

6. Lessons Learned

• Data Security is Paramount
• Prioritizing data protection is essential for maintaining trust and compliance.
• Continuous Adaptation
• Regular updates and improvements are necessary to keep algorithms effective.
• User-Centric Design Matters
• Focusing on user needs and ease of use drives adoption and satisfaction.
• Value of Strategic Partnerships
• Collaborations can expand offerings and open up new revenue opportunities.

7. Conclusion

By integrating an accurate expense classifier and automating mortgage request processing, we significantly enhanced both the user experience and operational efficiency of the bank's mobile app. These advancements not only increased customer engagement but also opened new avenues for revenue generation. Our tailored solutions provided tangible benefits, reinforcing the bank's competitive edge in the market.

Ready to transform your banking services with innovative technology? Contact us or schedule a meeting with our CTO to explore how we can support your goals.