Seven Strategies for Achieving Balanced Loan Growth – Part 2

7 Strategies for Achieving Balanced Loan Growth – Part 2

In part one of our series on the seven lending strategies to achieve balanced growth, we took a look at the ways in which CRM systems are valuable for understanding your customers. Today’s focus is on efficiency when it comes to managing your digital vault.

Efficiencies Needed within Accounting, Tax Returns & Financial Statement Processing

Beyond an effective CRM, financial institutions must also look for areas to streamline within their accounting and financial departments. By leveraging an automated tax return and financial statement processing system, institutions can eliminate the tedious work of inputting financial statement and tax return data into statement spreads, thus ensuring an accurate and consistent approach to analyzing financial risk each and every time. This allows analysts to be analysts; not just a data entry clerk. Financial institutions can then improve the quality and consistency of financial analysis.

Additionally, an institution’s statement spreading solution should include unprecedented insight into the commercial lending underwriting process and should facilitate reporting, data collection, global cash flow, covenants, a comprehensive credit memorandum and more – all in one central location.

Flexible formats are also important. Statement spreading analysis software should offer a wide range of formats and features to meet the institution’s financial analysis needs, including standard formats and specialized industry formats that must be built in. It should also have the ability to add covenants quickly and easily using standard templates without having to leave the application.

Banks and credit unions also gain commercial real estate insight. With a flexible, dynamic structure of the statement spreading software, underwriters and credit analysts will gain the reporting options they need to make sound credit decisions. Customized charts of accounts tailored to the real estate industry for example should contain multiple levels of analysis for various types of borrowers and properties, enabling institutions to group properties based on ownership or other types of underwriting criteria. Beyond CRE, this approach could apply to any specialized lending. 

The right statement analysis software should also offer a reliable source of comparative data and provide direct access to the complete database of the latest version of the RMA's Annual Statement Studies®, a source of comparative industry benchmark data that comes directly from the more than 150,000 financial statements of small and medium-size businesses across 600 unique industries.

Baker Hill NextGen® Statement Spreading is a proven 30-year solution that offers unprecedented insight into the commercial lending underwriting process. This core component of the Baker Hill NextGen® platform facilitates reporting, data collection, global cash flow, covenants, a comprehensive credit memorandum, and more—all in one central location.

Stay tuned for the next installment in this series. If you’d like to learn more now, download our full eBook with all seven lending strategies.

You might also like:

Seven Strategies for Achieving Balanced Loan Growth – Part 1