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Commercial Lending: Why It’s Broken, How to Fix It

November 10, 2015 | stratabeatit

The complex, manual loan processes that bog down financial institutions and result in a poor commercial lending experience for customers was the subject of a recent Aite Group/Provenir webinar. Automation is held up as the antidote to the process pain points that are felt across teams responsible for orchestrating the end-to-end lending life cycle.

Aite Group’s senior analyst David O’Connell provides fascinating insight into the current state of the commercial lending market, its resurgence of recent years and the impact a future interest rate rise would have.

He explores the root cause of the operational challenges lending institutions face as they strive to be competitive and meet customer expectations.  These include too much time spent on data re-entry and housekeeping activities. Lenders, he suggests are in a ‘production environment.’ Extremely complex processes support the creation of in-depth commercial lending documents.

They aren’t stuck in this situation, David suggests. Automation can increase productivity across numerous functions, reduce costs associated with paper-based processes, increase deal volume and improve customer service. Through it, commercial lending operations are more scalable and can benefit from data sets that are better and more visible, which also helps with regulatory compliance.

Dip into the webinar for more on the operational challenges faced in commercial lending and how to meet them head-on.

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