Using leading AI applications, TD is providing
mortgage pre-approvals and term life insurance application
approvals within seconds
TORONTO, May 16, 2024
/CNW/ - At a time where technology is evolving rapidly and
every second matters, TD Bank Group (TD) announced two new AI
solutions to help accelerate the mortgage pre-approval customer
experience along with the approval experience for customers
applying for term life insurance. As part of the Bank's commitment
to ensuring customers continue to be at the core of its identity
and purpose, the two new solutions help to deliver enhanced and
more efficient service for some customers applying for mortgage
pre-approvals at TD and for the approval process for term life
insurance applications at TD Insurance.
"The field of AI and Machine Learning is evolving, and as
a leader in the industry, we continue to leverage the technology to
help deliver faster digital banking and insurance experiences to
our customers," said Luke Gee, Head
of AI and Analytics, TD. "We're thrilled to announce two new
solutions that can help drive value for our customers by making
their experiences faster and easier to navigate."
Faster Mortgage and HELOC
pre-approvals
In August 2023, TD introduced a
new AI model to provide faster credit decisions on some mortgage
pre-approval applications. The model assesses mortgage and home
equity line of credit (HELOC) pre-approval applications and can
provide pre-approvals for some applications to customers often
seconds after they're submitted.
Developed by Layer 6, a leading AI research and development
centre at TD, the model works alongside the Bank's underwriters.
Applications that aren't approved by the model are reviewed by
underwriters, who now have more capacity to focus on more complex
files.
Since August 2023, the model has
granted thousands of pre-approvals to some customers in
seconds.
"At TD, we know that buying a home can be stressful for
Canadians, especially during a period of high interest rates," said
Greg Brand, Vice-President,
Homeowners Journey at TD. "We're helping to make the homebuying
journey easier by being able to provide some pre-approvals often
within seconds for some of our customers, who will be able to find
out sooner if they can afford their dream home."
Transforming the process for
Term Life insurance approvals
In March 2023, TD Insurance
launched a machine learning model to help streamline the term life
insurance application process for its customers. The model reviews
and approves some eligible term life insurance applications seconds
after they're submitted.
Over the past five years, TD Insurance has seen a significant
increase in the number of customers applying for life insurance,
which has led to longer application and approval wait times. To
ensure customers remain front and centre, TD Insurance is now using
predictive modelling to review and approve nearly half of the term
life insurance applications it receives, which has resulted in
shorter wait times for customers.
Developed by Layer 6, the model reviews customer answers on the
insurance application, including height, weight, and several other
factors to provide approvals for eligible applications submitted to
TD Insurance. Applications not approved through the machine
learning model are reviewed by underwriters, who can now focus on
the more complex and nuanced applications.
Since its launch, TD Insurance has become a leader in approving
applications through machine learning modelling.
"Our machine learning model has helped us transform the term
life insurance application process for our customers, significantly
shortening wait times so we can continue to deliver legendary
experiences," said Valerie Gillis, SVP, Life and Health and
Credit Protection at TD Insurance.
These new AI powered solutions are the latest in the Bank's
ongoing AI evolution. Other highlights include:
- Growing top AI talent: Following the Bank's 2018
acquisition of Layer 6, a globally recognized AI leader, TD has
grown the AI and Machine Learning colleague base by almost 1,200%
from 15 colleagues to nearly 200 colleagues.
- Increasing AI output: Almost 50 AI solutions have been
developed or are currently in development by Layer 6 for multiple
lines of businesses at TD.
- #1 Patent Filer: TD is the number one Canadian financial
institution patent filer. The Bank has filed more than 450 patent
applications related to AI.
- AI Award recognition: In 2023, Layer 6 won the ACM RecSys Challenge, a leading global
competition where major tech companies and academic institutions
have the opportunity to benchmark their AI capabilities against the
world's best. TD also placed first in 2017 and 2018.
- In 2023, a Layer 6 research paper that explored tabular data
understanding and generation, while drawing on recent advances in
Generative AI, won runner-up for best paper at a NeurIPS
Conference workshop, the leading academic event focused on machine
learning research.
Today's announcement is part of TD Tech and Innovation Day, an
annual event showcasing the Bank's unique technology and innovation
story. This year's theme is Human-Centered Innovation which
highlights the people behind our innovation and the customers,
colleagues and communities we innovate for.
About TD Bank Group
The Toronto-Dominion Bank and its
subsidiaries are collectively known as TD Bank Group ("TD" or the
"Bank"). TD is the sixth largest bank in North America by assets and serves over 27.5
million customers in four key businesses operating in a number of
locations in financial centres around the globe: Canadian Personal
and Commercial Banking, including TD Canada Trust and TD Auto
Finance Canada; U.S. Retail, including TD Bank, America's Most
Convenient Bank®, TD Auto Finance U.S., TD Wealth
(U.S.), and an investment in The Charles Schwab Corporation; Wealth
Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD
Insurance; and Wholesale Banking, including TD Securities and TD
Cowen. TD also ranks among the world's leading online financial
services firms, with more than 17 million active online and mobile
customers. TD had $1.91 trillion in
assets on January 31, 2024. The
Toronto-Dominion Bank trades under the symbol "TD" on the
Toronto and New York Stock
Exchanges.
SOURCE TD Bank Group