Streamlining Your Commercial Lending Process

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Streamlining your commercial lending processes is all about getting that deal to the table quicker.  Getting a quick decision back to your prospect can be a key differentiator for your institution.  As with so many other initiatives, the goal here is to increase productivity without adding additional employees, while improving the client experience.  All the while we want to do this without the fear that credit quality is being jeopardized.

So, how do you get started?  The first step is to take a good look at your current state processes and identify bottlenecks and inefficiencies.  In order to determine how optimization would impact your growth goals start at the beginning of the process and assess how your business development is supporting your growth goals.

Who’s doing what?  Review all of the roles and their responsibilities at your institution today.  Make sure your resources are aligned with the correct responsibilities.  One of the quickest lifts is looking at intersection points and removing duplication or changing the communication channel.

What Are the Key Elements of Streamlining and Automating?


Inconsistency = Inefficiency. Ideally, the commercial lender would quarterback a deal through the process, but the reality in today’s commercial lending world it sometimes feels more like we’re constantly chasing things down.   With consistent standards and practices, benefits can be realized across the lending process.
Please note that the goal here is not to change the process for the sake of change, but to create consistency without unnecessary complexity.  The last thing we want is the frustration that comes with employees not adopting the new processes or technology.
When we talk about consistency and standardization keep in mind that this doesn’t mean you can’t have different execution based on circumstances. In fact, it’s important that we continue to recognize that things like portfolio composition or client base can dictate how we engage with a client or prospect.  If we look at bringing consistency to all facets of the lending and decisioning processes, we end up with a more efficient process across the board.

Minimize Data Entry Points

There needs to be a single solution or point of data entry to manage the entire commercial lending process. This should allow for a collaborative effort from start to finish so lenders and analyst are not duplicating effort entering the same data points. Automation should enable your institution to originate and close loans at a higher volume.

System Integration

The ability for lending solutions to integrate with your institution’s core systems is essential. You want to be able to leverage all of your data with accurate, up-to-date key data to ensure decisions are made based on sound analytics.


Regulatory demands require higher levels of transparency. Therefore you want a comprehensive approach that gives you more control over credit policies and greater transparency.

Improved Client Experience

Improved client experience is realized through faster turnarounds on new and renewal lending decisions.  This includes that time-consuming credit authorization write-ups. Nurturing client relationships will help you positively impact retention rates with your most profitable clients.

Communication / Collaboration

What communication channels are being used today and how are team members are collaborating with each other? Look the most efficient ways to share information.

Sound like a big job?  It is, but there’s help through business process consultations and leading FinTech solutions. With the help of the right partner, your institution can be well on it’s way to increased productivity and a streamlined lending process.

This post is part of The Ultimate Guide to Selecting the Right Loan Origination System.