When personal computers first appeared in banks, they added minimal efficiency, replacing functions like typing into forms, says John Watts, vice president and general manager of financial technology leader Baker Hill’s lending division. “But as soon as those computers became networked in the institution, that helped to take that institution to the next plateau of productivity and return on that technology investment.”
Streamlining your commercial lending processes is all about getting that deal to the table quicker. Getting a quick decision back to your prospect can be a key differentiator for your institution. As with so many other initiatives, the goal here is to increase productivity without adding additional employees, while improving the client experience. All the while we want to do this without the fear that credit quality is being jeopardized.
Looking at the phrase “risk appetite”, there is more to it than just looking at the types of loans the credit union is willing to lend money for. Step one would be to determine their market area and the types of industries it determines is a part of their overall risk strategy. Step two would be to establish on-going risk management to underwrite the credit and step three to establish effective portfolio management after a loan is made.