Despite concerns about upfront costs, a growing number of smaller financial institutions are preparing to implement technological upgrades, such as online loan closings and automated underwriting.
A recently released survey of community banks, conducted by the Federal Reserve, the FDIC and the Conference of State Bank Supervisors earlier this year, found that more than 25% of respondents plan to start offering online loan closings over the next 12 months.
Only 18% of the community banks surveyed already close loans online.
About 16% of the respondents said they are making plans to incorporate automated loan underwriting into their platforms over the next year, compared to the 13% that already do so.
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