Our Viewpoints

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Reinventing Lending: Achieving Faster Value with Technology

February 08, 2016

You’ve made your list of operational resolutions for 2016 – establishing conforming procedures and lending practices, minimizing loan losses, ensuring proper risk-rating of credits and correct allocation of reserves – but how do you grow organically and profitably in the process?

Commercial lending teams who want to stand out from the competition know that meeting the credit needs of potential borrowers depends on speed and efficiency. Those who want to lead, win new business and grow must capitalize on technology to enable their platforms to allow lenders to develop strong, lasting relationships.

Transforming an entire financial institution’s lending business to a technology-based model may seem overwhelming, but the reason is compelling: strengthening relationships is the key to commercial lending growth.

Technology can bring significant benefits to commercial loan origination and commercial loan portfolio management, and eliminate the competitive and regulatory gaps within all segments, including small business, commercial and industrial, commercial real estate, and construction lending.

Unable to attend our D+H-sponsored webinar on February 25 – Reinventing Commercial Lending: A Case Study in Achieving Faster Value, hosted by CEB Tower Group? Click here to access the recording.

Also, consider these perspectives from other banks and credit unions on the transformative power of financial technology:

  1. Mari Suokko, Credit Analyst at Southport Bank, observes “As an industry, we’re starting to see a trickle of regulations impacting commercial lending.” Her bank’s choice of an automated commercial lending solution has helped it harness them. No matter what changes, the institution’s Fintech solution makes the modifications it needs to stay compliant. In addition, the solution is backed by a support team that’s not only responsive, but also dedicated to the needs of today’s banking industry.
     
  2. Building a successful commercial lending team with a small number of qualified employee resources can be a challenge; an efficient technology solution can have a huge impact on pricing and the bottom line. According to Erica Erdozain, VP of Commercial Lending for Seattle Metropolitan Credit Union, their selection of a commercial loan origination system from D+H “is going to allow us the flexibility to quickly grow our organic portfolio with smaller full-time employee resources compared to how most have to start their departments in terms of staffing.” In addition, it allows multiple departments to work on a file simultaneously and collaborate on the work, creating even greater cross-team efficiencies.
     
  3. Angel Gonzalez, VP Commercial Banker at CenterState Bank, found that many of their operational functions were siloed, and could be more efficient as shared services. Since implementation, “the underwriting and back-office operations of our commercial lending practice are now centralized.” He feels that investing in an automated technology solution enabled a greatly improved, more agile workflow.
     
  4. According to Doug Blank, VP Credit Administration at Your Community Bank, the switch to an automated loan origination solution has led to markedly faster task management and servicing. “We’ve doubled in size without adding credit analysts. We’ve landed some large deals recently because of our quick turnarounds and ability to get better information in front of our approvers.”

Efficiency in the front office, backed by execution in the middle office, highlights the need for an efficient underwriting structure that adapts quickly to changing lending needs. A trusted and innovative technology partner can help banks and credit unions cut processing time, shrink costs, and reduce credit and compliance risk by helping them leverage the right data to power growth.

At D+H, we offer flexible, secure lending technologies that are designed to simplify the lending process so your loan officers can focus on what’s important – establishing deeper relationships and driving profitability and growth. Our compliant, end-to-end solutions can be configured to meet your business needs and integrate with other systems, giving your customers and members a seamless experience no matter how their needs evolve. By sharing our insights and expertise of the lending industry, we’ll partner with you to develop the right lending solution that supports your long-term goals.

Author

Erick Smith
Product Marketing Specialist at D+H
Erick Smith