Being a Commercial Lending Superhero: Best Practices from Business and Technology

Every superhero needs a sidekick. Batman was a one man army, but at times he needed a sidekick like Robin. Commercial lending superheroes, too, require a sidekick and the right technology proves to be just that. Despite being a major revenue earner for banks, commercial lending is often a technologically neglected area. The right technology can help commercial lenders by seamlessly connecting front and back offices, dismantling silos, and resolving broken lending processes.

In commercial lending, processes are people intensive and operations are document intensive. What distinguishes a great commercial lending automation system from a good one is its ability to provide a configurable unified platform that automates operations while empowering people. Following are the attributes that make commercial lending automation the perfect sidekick.

Break the Build vs. Buy Paradigm

Lenders are often conflicted by the build vs. buy conundrum. Building a customized solution in-house is not feasible and procuring a ready-made solution has its limitations. A solution that offers the capability to build and buy proves to be the best. It also gives lenders the flexibility to modify the solution to accommodate future requirements with no additional investment.

Fix Broken Lending

Lenders depend on different systems to cater to the requirements of different parts of the lending cycle. Many banks still depend on paper-intensive workflows that not only make the lending process error-prone, but also impedes a seamless flow of information. The right technology offers a cost-effective tool to redress change aversion concerns within an organization and integrate application processes with front and back-end systems, while aligning them to those of customers and third parties.

Harness Straight-through Processing

Lack of integrated credit processes affects data quality, revenue, capital deployment, cost, and risk. It introduces several potential points of failure into the process. Straight-through processing of loan applications 1) harnesses automation of tasks and elimination of redundant data entry and 2) frees employees from needless manual intervention; thus unlocking productivity.

Thrive on Legacy Systems

Legacy systems often limit the capabilities of banks to manage data volume, comply with changing regulations, and live up to customer expectations. The right commercial lending solution allows lenders to establish seamless communication between legacy systems and all disparate applications. This enables banks to extend the life of legacy systems, while keeping a check on costs, complying with regulations, and delivering superior customer experience.

Comply with Ease

Constantly evolving regulations pose challenges to lenders. The right lending platform should cater to the standardization of regulations across banking processes and departments. It should be capable of generating standard and custom reports to simplify the extraction of audit information from centralized data stores; thereby, enhancing an institution’s regulatory readiness.

A solution that can effectively deliver on the aforementioned criteria can be a perfect sidekick for commercial lending superheroes. Such a solution not only empowers processes but also enhances customer experience. In today’s dynamic digital environment, the right technology sidekick caters to the end-to-end automation of lending processes; thus, improving both efficiency and efficacy.

To learn more about how the right technology can help commercial lending superheroes, attend the Finastra Innovation Session at RMA’s Annual Risk Management Conference in Boston, MA on November 14, 2017 at 7:15 a.m. to 8:00 a.m.

This session will focus on:

  • Selling to the board: Building a business case for commercial lending automation through business and technology alignment.
  • The nine yard journey to success: Practical cases and best practices for ensuring project success.
  • Making technology a competitive differentiator: One unified framework for automation of commercial (C&I, CRE), small business, SBA, consumer loans and online account opening across the bank.

This session will offer practical advice and best practices from two distinguished leaders; John Smith , EVP and CIO of United Bank and Fara Khan-Castro, SVP C&I and Credit from Ocean Bank, with Heather Knight as the moderator

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