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.