Lending and credit automation: Before and after

Slow lending decisions and frustrating loan application processes are among borrowers’ biggest gripes with traditional financial institutions vs competitors such as online or alternative lenders. Ask the staff of banks and credit unions about the loan application, underwriting, and onboarding processes at their respective institutions, and you’ll likely hear some complaints from them, too.

When commercial bankers making $200,000 a year are driving all over town to pick up supporting documents just to get the completed loan application moving forward instead of calling on prospects, inefficiencies of a manual application system are personally frustrating. When commercial credit analysts earning $25 or more an hour are performing data entry for every tax return of a business entity tied to a loan application, the underwriting process is taking too long and requiring too many hours of labor by skilled workers for repetitive tasks.

“Automating the entire life of a loan – from application, through credit analysis, decisioning, onboarding, and beyond to annual reviews or even loan renewals – can save financial institutions substantial labor hours,” says Abrigo Vice President of Banking Neill LeCorgne. “It’s a generational opportunity to enhance earnings. That’s what 99% of bankers are trying to do. You’re always trying to enhance earnings.”

 

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