The digital transformation lenders actually want

Forget artificial intelligence. Forget about scanning a retina instead of having a customer sign loan documents. While futuristic-sounding technology is exciting, it’s not what lenders or borrowers are asking for. The type of technology that makes originators and their customers happy is far less thrilling. Here’s what is thrilling: your institution is closer to a meaningful digital transformation than you think.

In an Aite-Novarica Group survey of commercial lenders, many said "digitalization" is the #1 technology change their company should adopt to increase profits. That likely doesn’t surprise you, but their definition of digitalization might. The lenders surveyed defined "digitalization" as streamlined onboarding and underwriting processes that would provide them with more time to cross-sell and upsell. Survey participants also mentioned mature and heavily adopted tools, such as their CRM, loan origination and core servicing systems as needing to be updated. The also expressed a desire for their institution to enable single sign-on (SSO) and commit to e-signatures. Overall, their requests are pretty far from expecting bots to take over.

Most financial institutions have access to the tools they need to offer customers a fully modern lending experience. The problem isn't budgeting, getting IT more involved, or customer adoption of web-based processes. Often the biggest hurdle to digitalization is an institution's reluctance to switch paradigms and forego outdated practices.

What if your technology could approve and fund reasonably sized commercial loans to credit-worthy customers without your assistance? What if the tech solution could do so from a mobile application, so the customer had access to proceeds when they need it? Your existing technology can likely support automated approvals within your specified parameters, borrower portals on mobile devices, and integrations with other systems to ensure the loan moves seamlessly toward servicing. Would you be willing to configure your tools to do more and therefore provide employees with more time to focus on bigger deals?

Now is the perfect time to visualize how you can provide a best-in-class process, with a focus on superior customer service. Review your current technology providers and ask yourself if you have the solutions and tools to make your digital transformation happen. Then examine if your institution is ready to make meaningful change to allow technology to improve processes for borrowers and lenders. With both the technology and an open-minded approach, you'll make quick strides. And if you don’t yet have single sign-on and e-signature, consider those great places to start on the road towards digital transformation.

About the author, Ron Meyer

Ron Meyer is a Senior Business Advisor with Linedata Lending & Leasing. Experienced as both a bank executive and advisor focused on technology solutions, Ron has the knowledge needed to help financial institutions manage risk, increase efficiency and grow while maintaining high compliance and security standards.