e-book: Winning the Game of #Commercial #Lending
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| C.U.P. for Commercial Lending | www.newgensoft.com WINNING THE GAME OF COMMERCIAL LENDING
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Transcript of e-book: Winning the Game of #Commercial #Lending
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WINNING THE GAME OF COMMERCIAL LENDING
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For me, winning isn't something that happens suddenly on the field when the whistle blows and the crowds roar. Winning is something that builds physically and mentally every day that you train and every night that you dream.
- Emmitt Smith
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Commercial Lending Arena Has Changed!It’s like playing one ‘away’ game after another, over and over again. Commercial lenders are increasingly finding themselves in unfamiliar territories. Regulatory regime continues to get stricter. Access to lending is crossing over traditional boundaries of geographies and business models, resulting in increased competition. Customers are increasingly becoming more demanding. Your own employees expect more, in terms of working environment as well as technological enablement.
Winning the game of Commercial Lending requires
you to fundamentally transform for better agility, responsiveness
and customer-centricity.
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Perfect Storm Of Challenges
Commercial Lending Process is complex.
The cross-functional nature of commercial lending processes makes them complex. Additionally, for proper risk and portfolio assessment, these processes involve participation of subject matter experts and risk officers at various stages, making these workflows even more complex.
Every client is unique.
Banks need to profile prospects and customers in a detailed manner and also as precisely as possible. This uniqueness of customers and their requirements make it difficult for banks to assess risks and service them duly without adequate information support.
Products and offerings tend to vary.
Unique customer needs also mean that lenders need to offer variations in their products to satisfy those needs. These variations pose further difficulties for banks in applying their policies and rules without the requisite support from systems and processes.
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Inefficient operations and broken processes.
For lenders, one thirds of operational costs are due to reworks, waiting times and delays - owing to siloed systems and broken processes. Customer servicing and retention suffer, and lenders struggle with outdated processes and systems despite the best intent.
Rise in Competitive forces.
Newer competitive forces are vying for the growing lending segment. While there’s enough competition from banks of various sizes and scale, lenders face additional competition from alternate lending and P2P lending players, albeit marginal but with potential to grow further.
Regulatory regime continues to get stricter.
Post the financial crisis, banks have become more risk averse and the regulatory requirements have become even more stringent. Banks need to be able to perform Portfolio Management, Credit and Risk Management while ensuring compliance.
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There's only one reason for doing
anything that you set out to
do. if you don't want to be the
best, then there's no reason going
out and trying to accomplish
anything.
- Joe Montana
What Stops You?
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Same Ol’ Formations!
The universal truth is you cannot win new battles the old way. Most commercial lending organizations today struggle with the same old legacy systems patched with applications and point solutions over and over again for the past couple of decades. What’s more, these monolithic systems imposed their own way of doing things, preventing lenders from differentiating themselves in the market. Despite all great intentions of innovating and keeping ahead of the market, these old formations keep making them look the same old lending organization frozen in old times. Flexibility is missing, and configurability elusive.
Today I will do what others won’t, so tomorrow I can accomplish what others can’t.
- Jerry Rice
#1
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Incomplete Passes Galore!
Broken processes, lending applications falling through the cracks, important communications getting lost midway, critical information getting misplaced, and indispensable documentation falling out rendered untraceable. You get the drift. These incomplete hand-offs and broken workflows hurt the organization day in and day out. Any attempts to build a strong process are rendered futile by the siloed systems and applications. Most times, the negative impact of these disjointed processes on customer relationships is not even measurable for the same reason - lack of traceability.
God bless those runners because they get you the first down, give you ball control and keep your defense off the field. But if you want to ring the cash register, you have to pass.
- Sid Gillman
#2
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Not Backing Quarterbacks!
Every organization has superheroes. Some overcome the systemic issues and work hard, but then get burnt out toiling over and over again. Some are knowledge workers, who just don’t get the required ammunition to demonstrate their potential - buried in the mundane and routine. You can set formations, you can devise plays, but it shows on the playground in front of the whole crowd when your quarterbacks, your offense and defence aren’t backed up - by support system and collaborative measures. Customers can see that, you can see that. Unfortunately, such orchestration and knowledge worker empowerment needs more than backend systems and front-end applications.
I think I could describe the perfect quarterback. Take a little piece of everybody. Take John Elway's arm, Dan Marino's release, maybe Troy Aikman's drop-back, Brett Favre's scrambling ability, Joe Montana's two-minute poise and, naturally, my speed.
- Peyton Manning
#3
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Cookie-Cutter ‘Plays’!
Agility, more importantly the mental agility, wins games. A flexible, smart-on-the-ground, and responsive lending process wins over customers. We all know that. Still, lending organizations end up with cookie-cutter point solutions that only seem to solve the problem at hand at a time, but fall short in increasingly dynamic situations. Every customer is unique and lending processes are complex. Same rigid point solutions driven processes hurt business and alienate customers. Lack of configurability of processes is one aspect of it, however, inflexible and cast-in-stone decision matrices, rigid business rules and frozen routing workflows inflict pain every day.
I think the running game is very important to every offense. Being balanced is extremely important. There's times where you have to throw the ball. You could be down late in the game, you need to come back; you have to be able to pass it when they know you're passing it.
- Tom Brady
#4
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Dragging Old Lethargic Legs!
Speed is not just a virtue, but a necessity today. Your customers expect you to be fast, regardless of your old stead. You may have reasons that are almost compulsive for you to persist with the old, siloed, lethargic and unresponsive legacy systems and applications, but your customers have no reasons to persist with you beyond a point. Lending organizations struggle with processes that are not integrated in the first place, let alone straight-through processing. Collaterals are still handled manually and somehow linked with loan applications. Front office still waits on middle office and back-office to revert indefinitely on customer requests.
It's probably similar to being in New York City and having a cab driver behind you and you're driving too slow. It's not the most pleasant thing.
- Barry Sanders
#5
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It’s Time To Act! It’s time to embrace the reality, acknowledge the options, and act before it’s too late.
Time to look for configurability.
Time to look for agility and flexibility.
Time to look for orchestration capability.
Time to look for unified yet dynamic approach.
Time to look for a platform that will yield your processes the power to win.
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A
Configurable
Unified
Platform
is what Commercial Lenders need in order to win in the increasingly dynamic, digital and customer centric arena.
Winning The Game Of Commercial Lending
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There’s no time to lose. Get your own C.U.P. now. Transforming your lending to digital starts with some simple, short steps:
Quickly assess where you are in your digital journey.
Identify a back-of-the-napkin long term goal to begin the thought process.
Discuss with your key stakeholders, and identify the gaps in your platform(s)
Get your own C.U.P.!
Take a test drive! Contact us!
Watch now!
Hear from Nancy Foster from Bridgehampton National Bank as she shares their Commercial
Lending automation journey.
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Recommended Reading
Learn what are the key considerations for selecting your commercial lending platform. Download our Ebook.
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WINNING THE GAME OF COMMERCIAL LENDING
About Newgen Newgen Software is a leading global provider of Business Process Management (BPM), Enterprise Content Management (ECM), Customer Communication Management (CCM) and Case Management, with a global footprint of 1300+ installations in more than 61 countries with large, mission-critical solutions deployed at the world's leading Banks, Insurance firms, BPO's, Healthcare Organizations, Government, Telecom Companies & Shared Service Centers.
Newgen's Quality Systems are certified against ISO 9001:2008 and Information Security Standard, ISO 27001:2013. Newgen has been assessed at CMMi Level3.
Write to us:
USA & CANADA: [email protected] INDIA: [email protected] APAC: [email protected] EMEA: [email protected] UK: [email protected]
For sales enquiry, dial:
USA & CANADA: +1 (202) 800 7783 INDIA: +91 11 40773769 APAC: +65 3157 6189 EMEA: +973-1-619-8002 UK: +44 (0) 2036 514805 www.newgensoft.com
