Time for an Upgrade: Five Things You Need to Know to Make Your Commercial Lending Transformation a Success

January 2012
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Time for an Upgrade: Five Things You Need to Know to Make Your Commercial Lending Transformation a Success

At a glance

As they start their commercial lending transformation, banks may invest a lot into application features and functionality when they should focus on data strategy.

Banks have reached the tipping point. With regulatory, market, and operational needs converging, lenders are recognizing that their commercial lending processes and systems will not carry them through the next business cycle.

While a number of banks have begun the commercial lending transformation process, some have not had the focus on data strategy that is needed to meet emerging regulatory reporting requirements cost efficiently. This inadequate consideration of data strategy has also affected banks’ abilities to achieve straight through processing and develop a differentiated customer experience.

We have observed that banks often invest much of their project efforts on application features and functionality. In the end, however, it’s their limited focus on data strategy that causes projects to falter. The potential risks of inaction are significant and can impact a bank’s ability to achieve its objectives. An ineffective and inefficient commercial lending loan origination capability and related data environment will put a bank at a competitive disadvantage.