Shinhan Bank Introduces AI for Real Estate Appraisal Review...First in Financial Sector

Inspection Time Reduced by About 70 Percent
Gradual Expansion Starting with Collective Buildings

Shinhan Bank announced on August 3 that it has become the first in the financial sector to introduce an “AI Inspection Agent” to support the review of real estate appraisal reports.

Appraisal reports are documents used to assess collateral value and other factors during real estate-backed loan reviews. Shinhan Bank previously relied on staff to manually check key information in appraisal reports received from external appraisal firms. However, the bank explained that it developed the AI agent to improve work efficiency and ensure consistency in review standards.

The AI inspection agent for appraisal reports leverages large language model (LLM), robotic process automation (RPA), and optical character recognition (OCR) technologies, enabling it to recognize the contents of appraisal reports and analyze consistency among key items as well as identify areas that require further review. Headquarters staff validate the inspection results provided by the agent, and final review and decisions are also carried out by employees. By combining AI analysis with human review, the bank aims to enhance work efficiency while ensuring the reliability of the inspection process.

According to internal measurements, the introduction of the AI agent has reduced the time required to review a single appraisal report by approximately 70% compared to previous methods. The number of reports that can be processed in a day has tripled.

Currently, the system is being applied first to collective buildings, and following verification of its accuracy and reliability, the bank plans to gradually expand its use depending on document format and type of real estate.

A Shinhan Bank representative said, “This initiative aligns with Chairman Jin Ok-dong’s emphasis on site-based AI implementation,” and added, “We will continue to monitor operational results and expand the scope of application in ways that enhance work convenience for both customers and employees.”

This content was produced with the assistance of AI translation services.