Bankers, Start Your Engines! 4 Loan Origination Software Lessons From the Indy 500
You’re probably asking yourself what loan origination software has to do with the Indy 500. (We’ll get there, don’t worry!)
First, let’s talk about traditions. Each May, the Indy 500 is held at the Indianapolis Motor Speedway and—along with it—many great annual traditions for the city of Indianapolis.
The month of May is filled with events, including the mini-marathon that winds through downtown and includes a lap around the IMS, festivals, and concerts, a parade, checkered flags on display everywhere, and finally, the Indy 500 (which is appropriately nicknamed the “Greatest Spectacle in Racing”).
Read on to learn more about how the Indy 500 inspired me to think about loan origination software and transformation in digital lending.
My Indy 500 Tradition
My first time attending the Indy 500, I’ll admit I was skeptical. I wasn’t a massive fan of racing, and the thought of sitting on a metal bleacher in 100+ degree heat for hours wasn’t appealing. But even though I’m still not a superfan of the sport, it became a tradition for me to attend year after year with my father. It’s something I look forward to every May.
If you haven’t had a chance to attend the Indy 500 in person, I would recommend visiting Indianapolis on Memorial Day weekend to take it in.
Not only will you be able to witness the pomp and circumstance of race day in Indy, but there are some important themes surrounding the Indy 500 that align well with loan origination software and the digital transformation of lending.
Here are a few of my lessons learned:
Lesson 1: Great Drivers Have Great Pit Crews
While the winning driver is looked at as the superstar of the Indy 500, they aren’t able to cross the yard of bricks first without an excellent pit crew to support them.
The same is true for developing and implementing a digital lending technology strategy—you can’t just implement loan origination software and be done. You need the right people and processes to be successful. Many view technology as the driver when in reality, it’s more like the pit crew, helping support and guide your people and processes.
Lesson 2: Start with the End in Mind
The common goal of each of the field of 33 drivers is the same—be the first to cross the finish line. Even though this might sound simple, it influences every decision leading up to and throughout the entire race.
When it comes to your commercial or small business lending process, it’s just as important to understand your result and start with the end in mind.
To put it another way, you should know what “done” means.
This ensures you are thoughtfully pursuing digital transformation with a vision of what you’re looking to accomplish instead of looking to origination software or other technologies to solve problems simply.
Lesson 3: Speed Is Critical
Speed isn’t just celebrated at the Indy 500. It’s a critical component of winning. The same is true in business lending.
Automating your business lending process with tools like origination software or a loan processing platform is essential for providing quick, consistent credit decisions, ultimately helping community financial institutions stay competitive.
Providing a quick decision not only gets loans off the street but develops the trust needed with your business customers to continue growing their relationship with you.
Lesson 4: Traditions Evolve
With over a century of traditions surrounding the competition, they are an essential aspect of not only how the race is run but also the month leading up to the event, including the ceremonies before and after the epic 200 laps around the brickyard.
From “the most famous words in racing” to the winner drinking milk, there are many traditions that fans look forward to each year. And even though these long-running traditions are important, they also evolve over the years.
In the same vein, when looking at digitizing your commercial lending workflows or small business lending processes, it’s crucial to not focus on how things have always been done and instead focus on how you’d like them to be done moving forward.
Your loan origination software and other digital tools should fit into and optimize your ideal processes.
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Posted on Wednesday, May 26, 2021 at 2:15 PM
by Mitch Woods