How Banks Can Make It Faster And Easier
Financing business loans is not only a significant source of revenue for banks, but also a wide-reaching way of supporting the community and the regional economy. Traditionally, however, the process has been cumbersome and labor-intensive for both banks and borrowers, needing the attention of representatives of both parties for each time-consuming step.
Simplifying and automating these steps can speed the process, freeing up bank personnel to focus on outreach and other strategic initiatives. It can also provide a better experience for borrowers, giving a bank a competitive edge in expanding its loan portfolio. Below, members of Forbes Finance Council share some key strategies banks can implement to simplify, standardize and automate the financing process. These approaches can lower costs, minimize errors, speed up decision-making and help banks better serve their business partners.
1. Consider Partnering With A Tech Company
Many banks consider partnering with tech companies as a sustainable way to connect with new communities and grow revenue. When done right, these fintech partnerships can enable greater levels of standardization and enhanced oversight for the bank. In particular, they can enable standardization of application data, enhanced due diligence for riskier applicants and access to best-in-class compliance vendors. – Itai Damti, Unit
2. Add API Integrations
Adding automated processes and API integrations is one of the fastest methods for banks to expand lending-based services to reach valuable commercial customers. Today’s modern API architecture gives banks an easy way to deploy their capital to business customers, enabling companies to extend more payment choices and automated invoicing to their buyers. – Brandon Spear, TreviPay
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3. Implement Blockchain Technology
Traditional banking systems are burdened by outdated processes that were built to meet regulatory requirements and are managed by customer service reps who have to stumble through a disjointed process. Blockchain can eliminate points of failure and reduce friction. While I commend banks for their cybersecurity programming and tech development efforts, blockchain would create a more secure, efficient and customer-centric future. – John Garcia, Solyco Capital
4. Build An App Or Leverage An Existing One
Banks that focus on streamlining customers’ workflows for business or personal banking will ultimately win their markets. There are several options for a bank: creating and developing its own app, expanding its ecosystem by integrating with third-party applications customers already use and love, or teaming up with like-minded brands to bring value-added services to customers. – Eyal Lifshitz, Bluevine
5. Automate Data Collection And Analysis
Utilize an AI-powered financial analytics platform that automates data collection, processing and reporting. By decreasing manual labor and standardizing financial analysis, banks achieve consistency and accuracy while releasing staff to focus on strategic operations and business development. Banks can also anticipate client needs by identifying trends and new service opportunities. – Neil Anders, Trusted Rate, Inc.
6. Utilize A Centralized Digital Platform
Integrate a centralized digital platform that standardizes and automates financial transactions, compliance reporting and customer data management. This reduces manual workloads and errors, allowing staff to focus on value-added activities such as developing client relationships and strategizing business growth. – Thomas Hartmann, thomas-hartmann.online
7. Implement Fraud Detection Systems
By implementing automated fraud detection systems that make use of AI and machine learning, banks can optimize their financial processes. By standardizing risk assessment and transaction monitoring, these technologies can cut down on human error and oversight. Banks should concentrate more on forming strategic commercial alliances by automating repetitive processes and minimizing fraud risks. – Gomathy Periathiruvadi, Alita Systems
8. Introduce Compliance Tools
Automating compliance is vital for banks to seamlessly onboard new partnerships. Modern compliance tools streamline and standardize processes that usually take a long time, allowing banks to negotiate and finalize new partnerships with greater speed and efficiency. – David T. Nudelman, Scandinavian Capital Markets
9. Implement Robotic Process Automation
To drive efficiency and foster business partnerships, banks should implement advanced robotic process automation. RPA automates repetitive tasks such as data entry, transaction processing and compliance checks, reducing errors and processing time. This allows human resources to focus on strategic activities, enhancing customer satisfaction, ensuring compliance and enabling growth and innovation. – Andre Pennington, Universal Wealth
10. Use AI-Driven Credit Scoring
Banks can implement AI-driven credit scoring that analyzes nontraditional data such as social media and utility payments. This simplifies the credit approval process, standardizes decision-making and automates risk assessments, freeing up capacity to forge partnerships with fintechs and offer innovative financial products. – Antoine Sallis, CREDIT GENIUS
11. Adopt Cloud-Based, E2E Solutions
Cloud-based, end-to-end digital solutions streamline banks’ financing processes by integrating budgeting, forecasting and reporting into one system. This improves efficiency, data consistency and decision-making. Automation reduces manual tasks, allowing finance teams to focus on strategic initiatives and business partnerships. Cloud-based solutions enable scalability and agility! – JD Morris, RHC 21 LLC (a SPE Fund)
12. Implement Enterprise Resource Planning Systems
Banks can drive efficiency and enhance business partnerships by implementing enterprise resource planning systems. ERP systems integrate financial processes and provide real-time data. They can standardize operations and automate routine tasks, such as invoice processing and reconciliations, to improve accuracy, strengthen decision-making and increase productivity, enabling staff to focus on strategic activities. – Tomer Guriel, ezbob Ltd.
The information provided here is not investment, tax, or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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