Mariah RineyIndustriesLeave a Comment

Commercial Lending and Digital Transformation

The winds are changing in the world of commercial lending and general banking. A mere ten years ago, national banks were the end all be all in providing the most up-to-date information on your financial situation. However, as decentralized technology rises, more small, independent players are coming to invigorate the space with the same capabilities of delivery services digitally.

The idea of being more connected all the time is what consumers want, including on a business level. Excess time spent processing a deal is a risk to the deal itself. People, and thus businesses, can pick and choose based on experience amongst banks, and the offerings are often the same. So, what is the deciding factor? The experience and how fast they can get answers.

Where does Digital Transformation come in? Well, for banks to stay competitive, they have to consider a few things and take stock of how their company currently runs.

Manual Processes Take Up Time and Energy

Even in the modern world, much of commercial lending is done manually, which takes time and manpower to complete. Roughly 30-40% of lending time is spent on non-essential, and non-automated tasks according to a Deloitte study. Think of how much your team could accomplish if 1/3 to 1/2 of their time was freed up! Additionally, manual processes introduce more human error, thus creating backlogs of inefficiencies and incorrect processes. Many deals are lost to a simple human error. 

Legacy Technology is Weighing Companies Down

Many banks still use legacy systems which are incredibly complex, and hard to integrate. This can make it difficult to move away from legacy systems when they are holding your data, processes, and manpower hostage. Being able to introduce either an entirely new system and investing in changing over, or employing an ECM that integrates with your legacy system is your best bet. By connecting your current system with one that streamlines the process, you save time and money in the set up. Check out how Intellective modernization services can help you with this!

Underwriting Time Restraints

Traditional banks rely on manual underwriting processes that take time to fill out and process, prolonging the entire loan approval process. This lengthy process can be usurped by the newer, more nimble companies with automated practices. Outdated risk models can also make it harder to assess clients, and the long process that is not 100% accurate can make many shy away from using a traditional company. These long-standing systems have served commercial lending well, but don’t pivot well and can be difficult to update and keep up with modern lending trends.

Lack Lustre Analytics

Who doesn’t love a good dashboard? Whether it’s to show how your entire region is doing, or a single deal, a good analytical display can help alleviate pain points. Many companies drop the ball when it comes to understanding their consumers and their demographics. This can be because reports are hard to pull, require manpower, don’t integrate with the legacy systems above, or are just plain confusing. By implementing a system with automated, easy-to-read reports you raise the likelihood that your business decisions are accurate and are ultimately helping your company. By understanding your consumers and what they want, you can deliver on that better.

How to fix these issues?

A good business process that links content with everyday tasks is important. Bonus points if your departments are able to quickly and accurately pull the information they need.

Most banks using nCino need to store lending related documents in an Enterprise Content Management System (ECM) to ensure records management, governance and regulatory compliance. Until now, the only option for banks was to embark on projects to build customized interfaces between nCino and various ECMs. Often such projects are costly, time-consuming and risky. That’s why we partnered with nCino, the leader in cloud banking, to provide a better option, Intellective Unity for nCino.

Unity for nCino solves all of the pain points for companies struggling to stay up to date with trendy lenders. Plus, it integrates with many legacy systems, leaving you many options on how to proceed. Chat with one of our experts to see how we can help you leap into the future.

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