Business banking represents a key growth segment for deposit and loan revenue for most financial institutions. Business lending accounts for more than 30 percent of the nations’ bank loan portfolios, yet most banks still depend heavily on manual lending processes conducted across disparate solutions. This results in inefficient, inconsistent, expensive, and overly time-consuming business lending operations, frustrating both borrowers and lenders.
To win business and grow revenue in the marketplace, business lenders must adopt unified technologies across the business customer journey through digital and branch channels, offering a balance of self-service and human interaction. Automated workflows, financial and credit analysis, risk-based pricing, decisioning, peer comparisons, and document generation streamline operations and eliminate inefficiencies.
Today’s technology optimizes the loan origination process, enabling financial institutions to originate secured and unsecured credit cards, lines of credit, installment loans, and construction financing for businesses. Such solutions empower the institution with flexibility for structuring business loan products across collateral types, payment and rate types, and purposes.
Automated solutions enable lenders to accommodate a full range of business applicants and leverage known data to prefill the application, which avoids unnecessary duplicate data entry and enhances the customer and lender experience.
Automated solutions can analyze the borrower’s financial picture, considering any new proposed debt and providing sensitivity analysis to potential interest rate, revenue, and expense shocks. The solution automates decisioning based on the unique attributes of each financial institution’s policies, business rules, and credit risk models, identifying checklists and stipulations and alerting lenders to policy violations for process controls, compliance, and policy adherence.
Throughout the loan process, documents can be generated using automated selection logic, taking the guesswork out of which disclosures and documents are needed and when they are required for the loan origination process.
The loan pipeline enables lenders to manage and track loan status with approval hierarchies, including committee approvals, individual lender, team, region, and enterprise-level loan portfolios, ensuring adherence to defined service level agreements (SLAs). This Omni-channel delivery strategy provides balanced automation and human-powered experience for bank customers, leading to a better customer experience and ultimately a more profitable and efficient financial institution.