Reinvent Commercial Lending Journey with AI/ML & GenAI

Why Commercial Lending Must Evolve Now?

Commercial lending has entered a new era. What was once a predictable, relationship-driven business is now being reshaped by technology, speed, and smarter risk management.

The global commercial lending market is on track to reach $29.4 trillion by 2030, with the U.S. already exceeding $17.5 trillion in loan values in 2024. Corporate and commercial banking together generate $2.3 trillion annually, making this a high-growth, high-competition space.

But as opportunity expands, so do the challenges. Modern borrowers expect faster, simpler, and more personalized experiences, while regulations tighten and credit risk becomes harder to predict. To stay ahead, banks need to rethink their entire lending journey from origination to monitoring with AI, Generative AI (GenAI), and unified platforms.

The Five Core Challenges Holding Banks Back

1. Complex Loan Origination and Lengthy Approval Time
   Manual document collection, fragmented processes, and multi-level approvals slow down loan decisions. Borrowers lose patience, and banks risk losing deals.
2. Outdated Credit Risk Models
   Legacy models fail to account for today’s dynamic borrower profiles (SMBs, startups, fintechs) and fast-changing markets. This leads to risk blind spots and regulatory strain.
3. Inefficient Loan Tracking & Covenant Management
   Without real-time tracking and proactive alerts, banks miss covenant breaches, risk exposure rises, and compliance audits become difficult.
4. Volatile Loan Structuring and Pricing
   Rigid pricing and structuring frameworks can’t keep up with market shifts, making it tough to stay competitive while maintaining profitability.
5. Intensifying Regulatory Pressure
   Global compliance frameworks (Basel III, Dodd-Frank, AML/KYC) demand precision and transparency. Manual tracking and reporting create cost and risk.

How AI and GenAI Are Transforming Lending?

AI-powered automation and GenAI-driven insights enable banks to reimagine their lending operations:

• Accelerate Origination: Automate document management, initial underwriting, and due diligence to cut approval times significantly.
• Enhance Risk Assessment: Use predictive analytics and GenAI to integrate real-time data, detect early risk signals, and improve decision-making.
• Modernize Monitoring: Centralized dashboards and AI-driven covenant tracking give real-time visibility into loan performance and compliance.
• Optimize Pricing and Structuring: AI models simulate market scenarios and borrower-specific risk, driving competitive yet profitable terms.
• Simplify Compliance: Automated reporting, content management, and anomaly detection ensure audit-readiness and reduce regulatory costs.

Real-World Proof Results Banks Are Achieving

• 45% boost in employee productivity
• 75% improvement in loan tracking and monitoring
• 40% faster turnaround time
• 50% reduction in operational expenses

A leading New York-based bank using AI-powered loan origination cut credit memo preparation time by 90% and manual data entry by 70-80%, while JPMorgan Chase saved 360,000+ hours annually by applying AI to review commercial loan agreements.

Maximizing ROI With Newgen’s Commercial Lending Solution

Newgen’s Commercial Loan Origination Solution (CLOS) helps banks scale growth and efficiency with a unified, AI-first approach:

• End-to-End Automation: From onboarding and underwriting to loan monitoring and renewals.
• AI/ML & GenAI Integration: For dynamic credit risk modeling, predictive insights, and document intelligence.
• Low-Code Flexibility: Quickly adapt workflows, compliance processes, and pricing strategies without heavy IT effort.
• Cloud-Enabled Collaboration: Secure, real-time collaboration across stakeholders and geographies.
• Compliance at the Core: Embedded audit trails, rule-based validations, and proactive anomaly detection.

Recognized in the Gartner® Market Guide for Commercial Loan Origination Solutions (2023), Newgen delivers measurable business value and a faster path to ROI.

Business Impact Banks Can Expect

• 80%+ faster loan tracking & monitoring
• 75% reduction in turnaround time (TAT)
• 90–95% improvement in compliance accuracy
• 50%+ cost savings through process optimization
• Higher customer satisfaction with streamlined experiences

Why Acting Now Matters?

The lending landscape is changing fast new fintech players, macroeconomic volatility, and evolving borrower demands are reshaping expectations. Waiting to modernize means higher risk, slower growth, and lost competitive edge.

Banks that adopt AI-first commercial lending now can:

• Protect margins with smarter pricing and risk analysis.
• Unlock faster loan approvals and better customer retention.
• Reduce regulatory exposure and compliance costs.
• Scale profitably in a growing global market.

Take the Next Step Toward Lending Excellence

If your lending journey is slowed by manual processes, outdated models, and compliance burden, it’s time to modernize with confidence.