Faced with increasing market volatility, what can banks do to sustain and grow their commercial lending business? As bankers, you can future-proof your organization with adaptable and resilient business processes, automated workflows, and seamless operations that don’t compromise on risk and compliance.
How can banks update their business processes to make them more resilient?
If your bank is relying on manual processes to originate, underwrite, and monitor your commercial loan portfolio, now is the time to automate your lending business. Banking automation, with its advanced technology, adds efficiency by providing access to data from other systems, establishing consistent, repeatable workflows to your standard banking processes, and eliminating the flow of paper that can slow or stall momentum as paperwork passes from one employee to the next.
“Well-designed credit processes can reduce operating expenses by 15 to 20 percent and risk costs by more than 20 percent, while improving customer experience.”2
In what other ways can banking automation support your business during uncertain times?
Banking automation can help your bank stay on top of its loan pipeline.
“Building the demand and the pipeline for loans is the driver of profitability in most financial institutions. It’s also the part of the business that’s going to be most at risk in a downturn”1, says Ron Shevlin, Chief Risk Officer at Cornerstone Advisors.
Access to a pipeline dashboard is one way to track demand and monitor the application process. With a dashboard, Chief Lending Officers have immediate and easy access to current applications and can catch and address bottlenecks during underwriting and onboarding. As you review banking automation options, check whether a dashboard is included in the loan origination system.
Access to a pipeline dashboard is one way to track demand and monitor the application process. With a dashboard, Chief Lending Officers have immediate and easy access to current applications and can catch and address bottlenecks during underwriting and onboarding. That’s why a dashboard is a helpful management tool. As you review banking automation options, check whether a dashboard is included in the loan origination system.
What role do partnerships play in making traditional banks future-ready?
Bank fintech partnerships can help by offering vetted banking automation solutions that address the current and prospective needs of customers, employees, and regulators. These solutions add the efficiency and effectiveness that help sustain demand, address customer needs and expectations, and bolster risk management in the financial services industry.
“To achieve the level of speed and scale required to be prepared for the future, you can’t get it done without the help of bank fintech partnerships.”3
How does banking automation serve as a key component in the digital transformation of the banking industry?
Banking automation is a crucial component of a wider digital transformation movement sweeping the banking industry. This shift is not just about streamlining the present, but it’s also about preemptively equipping banks in the financial services industry for the future. Automation empowers banks to anticipate shifts in market conditions and customer demands, taking on a more proactive business approach.
A key part of this digital transformation is the emphasis on data. With data becoming an increasingly invaluable asset, banking automation allows financial institutions to fully leverage this resource. Banks can integrate and analyze data gathered from various systems, which leads to richer insights, informed decision-making, improved risk management, and enhanced customer experiences.
How can bank fintech partnerships fast-track the digital transformation of traditional banks?
Rapid advancements in technology make it tough for traditional banks to keep up. However, through partnerships with fintech firms and technology providers, banks can embrace cutting-edge solutions without bearing the burden of developing these technologies themselves. This not only fast-tracks the digital transformation process but also allows banks to stay focused on their core operations in the financial services industry.
How can partnerships contribute to enhancing customer experiences and operational efficiency?
Importantly, bank fintech partnerships have a direct impact on enhancing customer experiences. Today’s banking customers seek quick, seamless, and personalized online banking services. Banks, by harnessing the innovative solutions offered by their partners, can fulfill these demands. Consider the implementation of a centralized document management system. This system would allow for real-time access and sharing of critical customer documents among various departments. By eliminating the need for physical documentation and minimizing processing delays, this significantly streamlines back-end workflows, leading to enhanced operational efficiency and productivity. As a result, bank fintech partnerships not only bring technological advancements to the table but also help in creating a customer-centric culture.
To summarize, banking automation is not just about boosting efficiency. It’s a strategic move that prepares banks in the financial services industry for the future, fortifies risk management, and significantly improves the customer experience. And the journey of transformation is amplified with the help of bank fintech partnerships, allowing banks to harness technological innovations and deliver top-notch customer service.
If you liked this article, consider: Digital transformation for commercial lending
Sources:
1,3 What Banks and Fintechs Must Do to Survive the Recession, The Financial Brand
2 Credit Risk, McKinsey & Company
