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4 Reasons to Consider Technology to Achieve Your Commercial Lending Goals

August 03, 2015

For lenders today, origination requirements continue to grow in complexity – given the economic climate, regulatory onslaught, rising costs and profitability pressures. In addition, industry consolidation demands commercial lenders offer more products, while attempting to outpace the competition by providing distinctively better service and strengthening customer relationships.

As a previous banking professional, I’m well-accustomed to market disruptors, especially in the wake of the 2008 financial crisis and new regulation and legislation aftermath. I’ve also witnessed the evolution of risk management becoming a holistic approach across most financial institutions’ entire enterprise and the unrelenting need for standardization. Out of these changes, more importantly, I’ve seen opportunity.

Why should lenders consider technology to grab hold of the opportunity to grow their businesses, profitability and reach?

Reason #1: Your competition is adding tools to the credit origination process. For many, early adoption is long gone. Early adopters, including many alternative lenders, are now looking to replace their legacy tools or consolidate them with more substantial platforms—geared to streamline their business requirements, and better position them to aggressively take aim at your customers with lower cost options and faster service.

Reason #2: Relationship managers can gain more selling capacity. Properly implemented, an origination and risk monitoring system can provide better insight into the customer relationship. Your relationship managers can harness the system data to predict which customers are potentially more profitable, eliminate the risk of missed opportunities – by highlighting cross-sell opportunities – and price loans more accurately and competitively. The efficiency gains result in shorter turnaround times and a more satisfying customer experience.

Reason #3: Research reveals implementing business process optimization solutions can bring annual savings of 15% or more. Deploying the right origination and monitoring solution equips you to eliminate the manual, labor-intensive tasks that cost you time and money, mitigate risk and fees that arise from human error, and streamline your enterprise workflow to increase operational efficiency and profitability.

Reason #4: Duplicate data entry can be nearly eliminated, reducing error rates and policy exceptions. With a centralized “quick application,” relationship managers will spend less time entering data. Duplicate data entry can be nearly eliminated using system logic, which reduces error rates and possible confusion. The right origination and risk monitoring solution can systematically define each next step and notify the proper team member in the workflow. Alerts and reporting are also automated, and can be distributed to relationship managers and stakeholders via email, text messages and system notifications, and requires no staff intervention.

If any lesson can be learned from the banking industry of recent, it’s that lenders must acknowledge, prepare and build the right strategy to turn challenge into opportunity to grow their businesses and achieve operational excellence. Federally regulated banks and credit unions have a competitive advantage that the competition simply can’t replicate overnight – the trust of customers or members. To maintain this advantage, however, it’s critical to continually innovate and enhance your delivery.

Curious to see what technology can do for your financial institution? We can help! Check out our eBook to help you build a business case for a commercial lending origination and risk monitoring system.


Erick Smith
Product Marketing Specialist at D+H
Erick Smith