Change Your Credit Strategy with the Cloud

Emily Bogan
Head of Commercial Product
nCino

Financial institutions continue to face real challenges in their credit operations. With increasing competition from alternative lenders, banks and credit unions are quickly finding themselves behind on the credit analysis curve because they lack the proper tools and resources to carry out fast, service-driven loan experiences to their customers. These issues can largely be attributed to not utilizing the most efficient or cost effective processes to get the job done.

Today, the credit analysis process presents obstacles and impedes competitiveness due to disparate, outdated systems and drawn-out practices. Siloed systems create manual work that slow down operations and staff, and create a barrier to actionable insights. In turn, it becomes difficult to provide borrowers the fast decisions they crave and the digital experiences they expect.

In an increasingly interconnected world, it’s more important than ever to recognize cloud computing as a strategic imperative, rather than a daunting prospect. Change is hard; and updating or replacing key operating systems is not something financial institutions should consider lightly. However, a transition to the cloud is more than an IT project. It’s a real opportunity to solve problems that, if unaddressed, can be debilitating to a financial institution over time. Moving to the cloud is a major stride toward weaving together all key steps of the lending process, including credit analysis, underwriting, and decisioning.

Cloud-based systems advocate for a single-platform environment, which is coveted by much of the financial services industry. It equips financial institutions to house important data centrally, which eliminates the need to rekey information across multiple systems and streamlines how data is stored and retrieved. This translates to a unification and automation of workflows, regardless of complexity.

The cloud helps digitize key stages of a loan far beyond simply providing an online application option to borrowers. For example, automated decision engines expedite approvals for clear-cut requests, triggering prompt responses from a banker for queries that may fall outside the institution’s defined credit policies. Processing efficiencies for underwriting that support the front-end experience are also abundant. And, to avoid slowing down the process, loan reviews and approvals can be routed with little-to-no human touch on the back end. Additionally, the doc prep work, even eSignatures, can be powered through the cloud, still originating from just one platform.

Financial institutions stand to gain much from the innate flexibility and configurability offered by the cloud. Lending processes can be tailored to financial institutions’ specific needs, factoring in unique policy parameters, risk tolerance, permission preferences and distinctive workflows. The lending process meets the needs of the institution, and allows for more consistent decision-making at both the customer level and across the entire portfolio.

nCino is scheduled to present at the upcoming RMA Annual Conference on November 13. This presentation will explore opportunities for enhancing credit operations with the cloud. nCino will also discuss how the world’s leading financial institutions are embracing these technologies to make faster decisions, meet customers’ needs, and streamline operational efficiencies.

Join us for more in-depth discussion on this topic during the panel session, “Enhancing Credit Operations with the Cloud,” at this year’s Annual Risk Management Conference in Boston, MA.

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