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Mar 15, 2023 SortSpoke

Why Auto Lenders are Using AI Data Extraction Solutions


Auto lenders have seen a sharp increase in demand over the last few years. Auto loans now rank as the third largest consumer credit market in the U.S. at over $1.4 trillion outstanding.  

This number has doubled over the last decade, and the Consumer Financial Protection Bureau (CFPB) predicts auto loan balances will surpass outstanding student loan debt in the first half of 2023.  

Going into 2023, TransUnion expects roughly 28.8 million U.S. auto loans to be originated (a 5% increase over last year). However,  while the prices and demand for automobiles are still strong, some industry experts are predicting a bumpy road ahead for auto lenders because of the following reasons:  

This is why leading auto lenders are taking proactive steps to solve these challenges by augmenting their workflows with Artificial Intelligence (AI) solutions. 

According to a survey conducted by Aite-Novarica, 45% of financial institutions are using advanced AI solutions to process loans, and another 40% plan to do so in the future.  

To understand why AI technology is generating such interest from auto lenders, we’ll have to take a closer look at the traditional origination workflow.

The Challenges Associated with Legacy Back Office Processes

Processing automobile loans is not an easy task. Depending on the type of loan, new car buyers may have to submit tax returns, utility bills, bank statements, VIN numbers, references, and more.  

To make matters worse, this information comes in all shapes and sizes. Some of these documents are typed, while others may be handwritten on pieces of paper and faxed.  

Once all of this documentation has been gathered and scanned, loan processors will review this information, manually extract data, then rekey it into in-house or third-party systems to make a decision.  

Unfortunately, these manual and repetitive processes can lead to a variety of issues during the loan lifecycle, including: 

  • Compliance and auditing challenges
  • Losing business due to long turnaround times
  • Slower origination cycle times due to data entry work
  • Higher operating costs, and more


How AI  is Solving Legacy Workflow Issues in Auto Lending

Today’s advanced AI technologies have come a long way since the days of Optical Character Recognition (OCR), which could only extract data from very basic, structured documents.    

Unlike OCR, SortSpoke’s Intelligent Document Processing (IDP) solution takes things one step further by extracting data from structured, semi-structured, and unstructured documents with 100% data accuracy.  

SortSpoke does this by using a combination of advanced AI/ML models + humans in the loop (your loan processors) to turn highly varied and complex unstructured documents into actionable data.  

For example, by augmenting your application workflow with SortSpoke, your loan processors can now easily extract information from any type of document and pull key attributes, such as:

  • Names and addresses
  • Phone numbers
  • Bank account, loan, and credit card balances
  • Currencies, VIN numbers, and much more. 

By implementing SortSpoke into your loan origination processes, you can now capture more data from unstructured documents to help you make better decisions.

But SortSpoke doesn’t just help you capture more information about your applicants.  SortSpoke also structures your data so users can upload it into core systems to meet compliance requirements and accelerate loan cycle times.

Benefits of Intelligent Document Processing in Auto Lending

Along with reducing the work required to process a loan, some of the additional benefits of using SortSpoke’s IDP technology include:

  • Handle spikes in loan volumes seamlessly by augmenting manual processes
  • Make better decisions by feeding models more accurate data
  • Attract and retain employees by eliminating low-value administrative tasks
  • Handle regulatory and compliance issues with ease by creating an audit trail of vital customer information 

See Why 20+ Financial Service Companies Trust SortSpoke

We understand every auto lender has its own unique processes and ways of conducting business.  We also understand many solution providers make bold promises but do not back them up.

Getting up and running with a SortSpoke trial account is easy.  No technical skills or templates are required. All you need to do is upload your documents, and within a few hours, our proprietary AI/ML models will start making recommendations on the data you need to pull. 

To see for yourself how SortSpoke can reduce your operational costs and boost employee productivity, book a no-risk, no-obligation discovery call with our team.

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