Case Study

New York Based Community Bank Transforms Its Commercial Loan Origination

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Barriers to Growth

The client aspires to be a preeminent bank. It aims at providing premium services and a superior customer experience.

The Bank was on a growth trajectory and wanted to efficiently manage the growing volume of its Commercial and Industrial, Commercial Real Estate, and Small Business Administration loan applications.

As a starting point, it wanted to overcome the lengthy origination of loans without compromising on effective regulatory compliance and risk management. It also realized the value of engaging customers digitally and harnessing technology for offering a seamless digital experience. Further, the Bank was burdened with siloed and unstructured processes. It was unable to utilize the information residing in its legacy systems. It lacked a mechanism for tracking and monitoring loan applications, covenants, and customer documents. The bank lacked a defined workflow for the renewal and modification of SBA loans and there were no means of reviewing critical loan parameters.

In order to overcome these barriers to growth and to deliver quality services to its customers, the bank decided to automate its loan origination.

Goals of the Project

  • Unified platform for processing of loan applications with the elimination of redundant tasks, reduced manual labor, and streamlined processes
  • Seamless flow of information across departments
  • Mitigation of risk of future NPA’s and loan defaults with sensitivity analysis and stress testing
  • Structured sub-processes such as third party appraisals, attorney communication, fees management
  • Effective tracking and monitoring of covenants, loan applications, and customer documents
  • Well-defined workflow for termination and modification of approved loans
  • Defined process for small business loan renewals and modifications
  • Effective review of key and critical loan parameters for monitoring the lending process
  • 360-degree dashboard reporting/ visibility across systems, processes & departments