NPLA Conference Session Recap: Future-Proofing Private Lending — Harnessing Opportunities Amidst Market Transformation

NPLA Conference, Austin, TX — October 17, 2023

Author: Mark Rothschild, Account Executive, Lending Technology at GoDocs

The final panel session at the NPLA Conference in Austin today, titled “Future-Proofing Private Lending: Harnessing Opportunities Amidst Market Transformation,” addressed the impact of new technologies and innovations on the private lending sector. The session featured a remarkable lineup of thought leaders, including Jeffrey Tesch of RCN Capital, Michael Tedesco of Appraisal Nation, Chris Branchetti of BCHH, Sam Kaddah of Liquid Logics, Erica Sikoski of Bridge Loan Network, and Shaye Wali of Baseline.

The session encompassed vital topics, featuring insightful questions that shed light on emerging technologies in the market, their impacts, primary areas of influence, strategies to thrive in this age of technology, and the role of blockchain.

How is AI changing the private lending market and what is the impact on technology?

The private lending industry is largely apprehensive about AI, primarily due to uncertainties and fear. This fear has resulted in a cautious approach towards tech updates. However, AI’s impact on automation can’t be overlooked; it holds the promise of saving substantial time and improving overall results in the lending process. Recognizing AI’s inevitable role in private lending operations is crucial as its potential benefits in enhancing efficiency and decision-making cannot be underestimated. As the industry evolves, understanding and embracing AI’s role will be critical in driving future advancements.

How has technology changed from us writing our own code to having AI and bots write code?

The progression of technology from manual code writing to the integration of AI and bots in code generation has brought notable transformations in the private lending industry. This shift has sparked faster iteration and problem-solving capabilities, allowing for a more responsive approach, and notably reducing the time required to devise solutions. A staggering 50% of code is now generated by AI, underlining the extent to which technology has taken over this domain. AI has played a pivotal role in augmenting productivity, especially through AI-powered note-taking applications that facilitate efficient meeting recording and transcription allowing individuals to focus on tasks that require human intervention and expertise.

In navigating this technological landscape, due diligence remains vital, especially concerning data privacy when integrating AI into operations. Because of the uncertainty, AI necessitates a thorough understanding of its reach and impact within the private lending space. Despite the advancements in AI, there remains a lingering hesitation in the market to fully depend on it. Lenders still place significant value on the human element in tasks like data analysis and property appraisals. Various industries exhibit varied levels of receptiveness to AI and technology, with the title industry being one such example where complete integration is struggling to find comfort.

Embracing technology, including AI, underscores the importance of safeguarding data through robust data protection measures. Careful consideration of data-sharing practices and the selection of trusted technological partners are critical steps in this transformative journey. Striking a balance between leveraging technology to optimize processes and preserving the human aspect remains key, emphasizing the need for organizations to adapt while valuing trusted partnerships in this ever-evolving tech-driven landscape.

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How quickly is blockchain coming?

The adoption and implementation of blockchain in the private lending sector are contingent on the establishment of a conducive regulatory environment. This aspect remains underdeveloped, hindering the full embrace of blockchain and the tokenization of services such as Title transactions. Without clear governmental guidelines, the industry faces a shortage of both adoption and capital investment in this transformative technology. The pace of blockchain integration largely hinges on regulatory initiatives and the establishment of a framework that encourages and supports its widespread use within the private lending landscape.

A Prevailing Theme of Caution and Curiosity

The dialogue emphasized a prevailing theme: the ever-evolving landscape of private lending in the face of advancing technology. The central takeaway is the need to navigate this transformation with both caution and curiosity. While fear may impede progress, embracing the potential of AI, particularly in automation, can truly redefine productivity and results within the lending process. Ultimately, informed and responsible adoption of technology is the key to unlocking a future where data privacy and efficiency harmoniously coexist in the private lending sector.

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Gaining a Competitive Edge with GoDocs

To maintain or gain the competitive edge and strive to be #1 in the lending industry, private lenders must continually adapt and evolve. Embracing next-generation technologies and solutions becomes imperative, and that includes harnessing the power of the loan document automation ecosystem offered by GoDocs. By leveraging GoDocs’ cutting-edge automation tools, private lenders can streamline their loan document processes, improve efficiency, reduce errors, reduce resources, and enhance operations to handle any loan type, any loan size, and any loan volume while mitigating risk automatically.

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