The Future of Commercial Loan Underwriting Has Arrived!

Posted by Debbie Gross

Jan 12, 2018 2:00:00 PM

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Build a better mousetrap and the world will beat a path to your door.” – Ralph Waldo Emerson

The underwriting process for commercial loans has been evolving slowly for more than 30 years. Yet, for most community-based institutions, the basic components have remained constant – until now. Study after study over the past five years has indicated that borrowers want the friendly, local decisions and customer service that community-based institutions are known for. At the same time, they are demanding faster decisions and more efficient credit application methods.

Many lenders have been reluctant to adopt automation technology to assist the decision-making process, fearing the result would feel impersonal. Nothing could be further from the truth. A well-designed loan underwriting and decisioning system actually enhances a community-based institution’s strengths while helping it become more efficient.

When you analyze the process of loan approvals, from application through closing, you discover 10 key elements for an effective loan generation engine:

  1. Efficient entry points for web, mobile, branch, or loan officer input of applications
  2. Elegant work queues and workflows feeding sales management pipelines
  3. A system that is in harmony with your industry/business rules and credit policies
  4. Includes robust financial spreading technology
  5. Reaches out to other information systems as needed, such as personal credit bureaus, business risk scores, flood determination for CRE, etc.
  6. Seamlessly allows for transition from spreading and analysis to loan officer presentation
  7. Contains specific functions to serve multiple loan types (C&I, CRE, etc.)
  8. Facilitates all necessary approvals, including lenders, senior lenders, executive committees, and boards
  9. Integrates with loan documentation systems
  10. Retrieves and sends data to your core to eliminate dual entry 

Commercial lenders have desired such a system for years. They want a seamless, all-encompassing solution that is still somehow easy to use. They do not want a “Wizard of Oz” experience, where data goes behind a mysterious curtain and returns with an even more perplexing credit decision. For that matter, neither do your business clients. Both borrowers and lenders want to be able to experience technology that integrates with their current processes rather than redefining them. They want systems that make life better and more efficient, not more complex.

Systems such as this are now part of our reality. It’s time to explore how this incredible technology can improve the commercial lending experience for your business borrowers and your lending team.


Topics: Relationship Management, Commercial Lending

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