Banks can take full advantage of the gaining momentum in commercial lending – developing new offerings and services, faster loan approval processes resulting in increased revenue, role based governance for efficiency, accountability and risk management, multiple touch points and for customer delight.
On the other hand, function and process silos, inadequate documentation, and people and version complexities will make Banks with legacy systems lose out business to its competitors.
The right way to modernize bank’s commercial loan origination is to carefully asses existing IT systems and choose the right platform that aligns to the business plans, internal processes and future roadmap and growth.
The following 3 points will help Banks undertake this modernization journey successfully:
1. Modernization effort needs be all-inclusive. A thorough assessment of the bank set-up to assess customer information management, proposal management and loan structuring, exposure management, process, task and approval management, audit trail, customer engagement management and reporting.
2. Business alignment needs to revamp. The organization structure and roles, business policies and practices, processes and hand-offs, Control mechanisms and Boundary conditions and constraints need to be geared to reap maximum benefit.
3. Unstructured lending process need to be automated. Enterprise Content Management approach coupled with workflow capabilities and Business Process Monitoring approach coupled with digitized data are clear frontrunners in the modernization efforts since both these approaches aim at bringing in automation of the loan approval process and help in management of the largely unstructured proposal data. Mindtree recommends BPM based approach for growing organizations to take advantage of digitized data, work flow management, analysis and reporting. A BPM approach caters to a bank’s current situation and also future growth plans.
I encourage you to view this webinar by my colleagues Shobhit Mathur and Shubha Narasegowda, experts in commercial banking technology, discussing the steps required to carry out a successful corporate lending modernization.