As new CRA rules take effect, forward-thinking banks are turning to AI and geospatial analytics to future-proof their CRA lending strategies. But what many banking professionals may not know is how these tools can also dramatically increase returns by driving more efficient targeting and engagement in underserved communities.
Did You Know?
According to a report from the National Bureau of Economic Research, banks that use AI-driven analytics to identify underserved populations have been able to achieve 10-15% higher loan approval rates. Moreover, AI tools are proving to be essential in cutting down the time it takes to process loan applications in these communities, leading to a faster turnaround and better customer satisfaction.
Opportunity to Monetize:
PathFinder’s AI solutions not only help banks stay compliant but also open up new lending opportunities in previously overlooked areas. By automating outreach and using data to predict where loan demand is growing, banks can focus on the most promising leads. This means a higher loan approval rate and a 10x ROI for every dollar spent on marketing and compliance efforts in underserved areas.
Monetization Insight: Leveraging AI for CRA lending can result in faster loan closures and increased profitability, with banks reporting an average return of $5 for every $1 invested in AI-driven lending initiatives.