Strategies For Lending Process Efficiency and Loan Growth

Lending Process Efficiency and Loan Growth Strategies

Growing the loan portfolio and managing risk are key to the financial health of any financial institution. They must have processes in place to assess credit risk where part of the reliance of information is directly from borrowers/or guarantors in order to assess their financial positions. At minimum, they need to understand various loan growth strategies and risk management strategies centered around efficiency. There is also the necessity to review past performance of client accounts, other services and third-party external data. All of this data brings us to the need for efficiency.

How much more efficient would your lending processes be if all data necessary to extend credit and monitor risk was easily available and accurate immediately whenever needed.  Financial institutions typically have disparate systems and utilize apps for spreadsheets where data is stored but is very difficult to mine due to lack of integration.  Redundant data entry is typical within each system and since there is manual entry in some cases, this exposes the chance for errors in the data.  Wading through all these different data sources is time-consuming and affects the not only the client, but also the bottom line. Processes and procedures can be updated to try to streamline the workflow processes and will increase efficiency but manually compiling data is the biggest inefficiency to the lending processes.

Financial institutions need to review all of the systems and data repositories where required data is stored and determine how this data can be integrated for easier access and reporting.  Most might think of a data warehouse which is the ultimate solution but there may be ways to look at what other systems might be integrated that would able to provide a good portion of what is required.  Efficiency takes time but anytime you can streamline processes and data, efficiency will take care of itself and the bottom line.

Learn more about how our risk management software can deliver strong insights from your various data repositories.