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Rocket Mortgage unveils AI tool to enhance client calls

EditorBrando Bricchi
Published 23/04/2024, 18:12
RKT
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DETROIT - Rocket Mortgage, a leader in the retail mortgage lending sector and part of Rocket Companies (NYSE: RKT), has announced the launch of a new generative AI technology called Rocket Logic “ Synopsis. This AI-driven tool is designed to transcribe and analyze client calls, record sentiment, and identify client preferences to improve customer service experiences.

The introduction of Rocket Logic “ Synopsis aims to enhance the efficiency of Rocket Mortgage's client interactions by automating routine tasks and allowing team members to focus on building deeper client relationships. The technology is expected to save the servicing team nearly 40,000 hours annually through its transcription and sentiment tracking capabilities.

Rocket Logic “ Synopsis operates on Amazon (NASDAQ:AMZN) Web Services (AWS) and utilizes Amazon Bedrock. It is currently active for calls managed by Rocket's client experience teams, including those from mortgage brokers working with Rocket Pro TPO and the company's servicing team, which oversees 2.5 million serviced loans.

The servicing team at Rocket Mortgage, which handled 3.1 million client phone calls in 2023, has seen about 70% of client interactions become fully self-serve, thanks to AI integration. This shift has led to a significant reduction in the time required for team member intervention.

Werner Vogels, Chief Technology Officer at Amazon, commended Rocket Companies for optimizing its data platform on AWS and developing innovative AI solutions like Rocket Logic “ Synopsis.

As the tool evolves, it will harness data from call transcripts to enhance predictive capabilities, potentially offering solutions to clients proactively. This advancement has already resulted in a nearly 10% increase in first-call resolutions, translating to an annual saving of approximately 20,000 team member hours.

Rocket Logic “ Synopsis also aims to understand homeowners' communication preferences, such as favoring emails over phone calls, and make recommendations accordingly. This is part of Rocket Mortgage's broader mission to integrate AI-powered tools into the client experience, with the tool currently being rolled out to bankers.

This announcement is based on a press release statement from Rocket Companies. Rocket Mortgage, known for its digital-driven client experience, closed more mortgage volume than any other lender in 2022 and has been recognized for client satisfaction in mortgage origination and servicing by J.D. Power.

InvestingPro Insights

Amidst the launch of Rocket Mortgage's innovative AI technology, Rocket Logic "Synopsis," the company's financial health and stock market performance remain key interests for investors. According to InvestingPro data, Rocket Companies (NYSE: RKT) has a market capitalization of $24.81 billion. Despite the challenges in the mortgage industry, Rocket Companies shows potential with an expected net income growth this year, as indicated by one of the InvestingPro Tips. This aligns with the company's efforts to improve operational efficiency through AI integration.

Investors should note that Rocket Companies has experienced significant stock price volatility, another InvestingPro Tip, which could be attributed to the evolving landscape of the mortgage lending sector and the introduction of new technologies. The company's Price / Book ratio stands at a high 39.54 as of the last twelve months ending Q4 2023, which suggests the stock is trading at a premium compared to its book value.

While Rocket Companies does not pay a dividend, reflecting a focus on reinvestment and growth strategies, the company has seen a large price uptick over the last six months, with a 62.64% total return. This could be a signal to investors of the market's optimism about the company's future prospects, especially in light of its AI advancements. For those considering an investment in Rocket Companies, there are an additional 6 InvestingPro Tips available, which could offer deeper insights into the company's performance and potential. To access these tips and more detailed analytics, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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