Former Brex COO Who Now Heads Unicorn Fintech Company Says GPT Is Already Upending The Mortgage Industry

December 16, 2024February 6, 2025 moneymetrics.org_admin Technology

Figure, a lending startup founded in 2018, announced today the rollout of an AI tool designed to make the home lending process more efficient. The company has partnered with OpenAI to develop an AI-powered tool that uses GPT-4 to help catch errors in lending documents.

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A Brief Overview of Figure

Figure specializes in helping consumers secure home equity lines of credit. Its all-online process condenses a normally 45-day process to just five days, making it a convenient option for those looking to access their home’s equity. The company has also made significant strides in the B2B space, with over half of its business coming from partnerships with companies like solar panel loan provider GoodLeap.

Figure’s Push into AI

Figure’s new push into AI is a key strategy under the leadership of its new CEO, Michael Tannenbaum. A seasoned executive with experience as COO at Brex, Tannenbaum has emphasized the potential for AI to transform the fintech industry. In an interview, he noted that "this was something that could really transform the way that fintech businesses work."

Key Features of Figure’s AI Tool

The company’s new AI tool is designed to help with ‘stare and compare’ instances in the lending process. This involves identifying unique property-level descriptions on multiple legal documents, a task that would normally require manual labor and take significant time. According to Tannenbaum, their new feature "massively decreases the manual labor and time it takes to verify the documents."

Security Concerns and OpenAI Partnership

Given the sensitive nature of personal information in loan applications, Figure had to work closely with OpenAI to ensure that its privacy agreement was ironclad. The company wanted to guarantee that its customer data was not being used in a way that compromised their trust.

"We went back and forth with OpenAI multiple times to make sure our privacy agreement was solid," said Tannenbaum. "We’re confident that our AI tool is secure and will help us provide better services to our customers."

Building Model-Agnostic Systems

While the company’s AI tool runs on GPT-4, Figure has made it a priority to build model-agnostic systems. According to Ruben Padron, chief data officer, this approach allows them to "constantly test and evaluate different models as they come out." This flexibility is crucial in an ever-evolving field like AI.

"We’re constantly evaluating new models and adapting our systems to ensure that we’re using the best technology available," said Padron. "Our goal is to automate the lending application process, reducing errors and bias."

The Future of Figure

Padron emphasized that Figure’s use of AI is just the beginning. The company aims to continue automating processes, reducing costs, and minimizing manual labor.

"We’re on a journey," said Padron. "We’re not there yet, but we’re making significant progress. Our focus is on lowering costs, eliminating bias, and improving our services."

The Impact of AI in Fintech

Figure’s use of AI has the potential to transform the fintech industry as a whole. By automating complex processes and reducing manual labor, companies can save time and money while providing better services to their customers.

As Tannenbaum noted, "AI is not just a tool; it’s a way of thinking about how businesses work." Figure’s commitment to AI is a step in the right direction for fintech companies looking to stay ahead of the curve.

Conclusion

Figure’s launch of an AI-powered tool is a significant milestone in its journey to revolutionize the home lending process. By leveraging GPT-4 and building model-agnostic systems, the company has set itself up for success in an increasingly competitive industry.

As the fintech landscape continues to evolve, Figure’s commitment to AI will likely have far-reaching implications for consumers and businesses alike. With a focus on efficiency, security, and innovation, Figure is well-positioned to lead the way in AI-driven lending solutions.

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