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Patrick True

Patrick True is Risk Manager, Lending Solutions Division. Patrick is a 25 year veteran of the financial industry. He started his career with Commerce Union Bank in 1986 as a commercial lending officer. As Commerce Union eventually became Bank of America, Pat managed portfolios up to $100 million dollars as well as central underwriting functions for the bank’s Tennessee small business and SBA lending units. He is a graduate of Belmont University with a master’s degree from Middle Tennessee State University. Pat began his current position in 1995 and now serves as a Risk Manager for ProfitStars’ commercial lending solutions. He is the author of numerous banking journal articles as well as a motivational book recalling eight years he worked as a riverboat pilot on the Cumberland River prior to his banking career.

Recent Posts

Integrated Portfolio Management Strategies Allow Credit ACE to Shine

Posted by Patrick True

Nov 17, 2017 11:00:00 AM

The rise of integrated portfolio management systems will have a significant impact on credit officers’ ability to evaluate the condition of their commercial portfolios and take quick action when needed. Throughout the years, we have discussed the Credit ACE formula associated with commercial loan management functions.

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Topics: Commercial Lending

5 Emerging Game Changers in Commercial Credit Risk Management

Posted by Patrick True

Nov 8, 2017 7:00:00 AM

As the financial services industry enters 2018, technological advancements within the sector are beginning to have a significant impact on the way credit risk managers, from chief credit officers to front line lenders, handle their responsibilities. Five emerging trends are likely to reshape the business of commercial lending in the months and years ahead. Many of you are likely already seeing some of these changes in your institutions. The business of commercial lending is in the midst of a renaissance that has the ability to significantly enhance communication between lenders, their clients, and their prospective clients.

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Topics: Risk Mitigation, Commercial Lending

The Next Wave of Fintech: Software as a Strategy

Posted by Patrick True

Aug 25, 2017 11:00:00 AM

Industry observers estimate that there have been as many as 4,000 fintech start-ups since 2010 in the U.S. and the UK alone. These companies reside in all sectors of financial technology, from lending to payments and beyond. This surge in development has generated a lot of excitement in both the retail and the commercial space. It has also triggered a new wave of discussions in the area of vendor management practices, where regulators are starting to focus their attention. No doubt, your financial institution has considered utilizing new third party software for many different functions in the past two to three years. But the market is now evolving beyond software.

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Topics: Commercial Lending

The Evolution of Small Business Lending – Online and Mobile

Posted by Patrick True

Jul 14, 2017 11:00:00 AM

 

The dynamics of small business lending have been changing rapidly over the past ten years. Born initially from the fintech lender movement, small business owners are now turning to online loan origination processes in greater numbers. Why? Having forged their expectations as consumers of personal loan and mortgage solutions in the early 2000s, these consumers-turned-business-owners now demand those same efficiencies in the enterprise arena.

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Topics: Commercial Lending

Not All Lines of Credit Are Created Equal

Posted by Patrick True

Apr 21, 2017 11:00:00 AM

Revolving lines of credit to small businesses help fulfill a critical need for cash flow. They bridge the gap between the time services are completed or goods are shipped and the time payment is made for the resulting invoices. For most small business owners, this time gap can be challenging, especially since it is unpredictable and can leave the business at the mercy of its customers. For small businesses in the U.S., this time gap averages 50 days, although it varies by industry. Filling the gap with predictable cash flow is a critical requirement for businesses that are growing, as well as businesses that have opportunities for quick-pay and volume discounts.

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Topics: Commercial Lending

The 20th Anniversary of “The Five Keys to Accounts Receivable Financing”

Posted by Patrick True

Apr 7, 2017 11:00:00 AM

Twenty years have passed since Paul Sims and I published an article in the Journal of Lending and Credit Risk Management (now the RMA Journal) entitled “The Five Keys to Depending on Accounts Receivable as a Repayment Source.” It is hard to describe the amount of change we have seen in financial services during those 20 years, and the challenges institutions have faced. While almost everything about the commercial lending process has changed since 1997, from technology to borrower/lender communication, the five keys are still just as relevant today as ever.

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Topics: Commercial Lending

The Five Most Meaningful Impacts of Lending Efficiency

Posted by Patrick True

Jan 13, 2017 1:00:00 PM

Since 2010, competition for commercial loans has increased significantly. More lenders have been chasing a limited number of loans during a slow growth environment. Alternative lenders of every shape and size have crowded the space, especially for small-dollar loans. More importantly, technology has shifted, resulting in greater pressure to meet the client online and to speed up loan approvals and turnaround times. Loans that previously would have taken two to three weeks from application through funding now take only a few days, or less. It reminds me of something Bill Gates once said - 

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Topics: Commercial Lending

Commercial Lending in the Coming Year – Trends to Watch

Posted by Patrick True

Dec 2, 2016 2:00:00 PM

The business of banking has changed dramatically since the beginning of our new century.  Competition for both CRE and C&I loans has intensified. Non-bank firms have introduced technology to enhance application timing and workflow. New risk management tools are available to better manage the debtor/creditor relationship. All in all, the landscape we see as we enter 2017 is dramatically different from what many of us ever experienced in the 1980s, 1990s, or even the 2000s. 

While there is no way to predict economic activity during the coming year, we can say that the following seven trends will almost certainly continue:

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Topics: Commercial Lending

Data Integration Key to Successful CECL Compliance Strategy

Posted by Patrick True

Sep 23, 2016 3:00:00 PM

Now that FASB Topic 326 - Financial Instruments – Credit Losses has been released, the real work begins. Financial institutions are beginning to perform due diligence internally and with vendors. Regulators are beginning to review the FASB standard to determine how they will address future reviews. Third-party vendors from core providers to specialty enterprise risk management firms are also fine tuning their services. A review of the new accounting standard will quickly lead us all to one key element necessary for success – data integration.

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Topics: Commercial Lending

How Information Technology Helps Create Credit ACE’s Within Your Institution

Posted by Patrick True

Jul 20, 2016 10:54:08 AM

Years ago, I introduced the Credit ACE acronym to describe a credit officer’s skill in managing a commercial lending portfolio. To be an ACE means to Anticipate potential future events and actions, to Communicate effectively with your clients and to Enforce legal agreements appropriately. Since the acronym was first used, advances in information technology have widely enhanced those capabilities. By working with financial technology vendors, financial institutions across the US are beginning to aggregate their financial data in order to see more clearly into each business relationship. From on-line applications and underwriting through documentation, collateral management and compliance, these institutions are beginning to benefit from seamless delivery of data from one system to the next. This will pay further dividends in the near future as institutions develop their strategies to comply with new regulatory standards associated with FASB guidance regarding current expected credit losses (CECL).

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Topics: Loan Pricing, Lending

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