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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

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