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Making your lending process efficient

Sageworks
March 5, 2015
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For most banks and credit unions, a current strategic focus is loan growth – increasing the portfolio by both acquiring new borrowers and expanding services offered to existing borrowers.

In this competitive environment, to win prospective loans, regardless of whether it is a new or existing borrower, the institution has to respond with efficiency. And if the lending process is fraught with inefficiency…it will be difficult to get back to the prospective borrower with the same speed as other institutions.

 

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Inefficiency in the portfolio could take the form of:

• Duplicate data entry, where staff have to enter the same data into multiple systems

• Returning to the borrower multiple times to collect all the necessary documents

• Storing borrower documents in disparate systems so it’s unclear what information has and hasn’t been collected

• With multiple people working on a single credit, it can be difficult to know at what stage the loan is presently, forcing the parties to provide frequent status updates

• An analyst having to re-spread the financials for a borrower, when new information is collected

• Manually aggregating data needed for loan committee presentations

• Manually adjusting loan proposals if the loan committee recommends changes

Sharing files between different branches or offices because the bank is not using a shared or real time data management program. Many of these inefficiencies can also inhibit effective borrower communication; different parties working on the loan may not have transparent information, so the borrower may receive only piecemeal updates.

The first step in rectifying these inefficiencies and the impact they have on the borrower’s experience is identifying these bottlenecks and opportunities where bankers can either (1) get the data they need more quickly or (2) share that information throughout the organization as need to make a quick and accurate lending decision.

 
About the Author

Sageworks

Raleigh, N.C.-based Sageworks, a leading provider of lending, credit risk, and portfolio risk software that enables banks and credit unions to efficiently grow and improve the borrower experience, was founded in 1998. Using its platform, Sageworks analyzed over 11.5 million loans, aggregated the corresponding loan data, and created the largest

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About Abrigo

Abrigo enables U.S. financial institutions to support their communities through technology that fights financial crime, grows loans and deposits, and optimizes risk. Abrigo's platform centralizes the institution's data, creates a digital user experience, ensures compliance, and delivers efficiency for scale and profitable growth.

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