Smarter Lending: Returns come quickly when you increase agility, make better decisions and delight customers
Jennifer Dubow 060001C6YV firstname.lastname@example.org | | Tags:  lending integrated-risk-managemen... banking ibmimpact
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Contributor: Eric Jacobsen, Global WebSphere Industry Marketing Manager for Banking
"I'm not saying that the customer service in my bank is bad, but when I went in the other day and asked the clerk to check my balance ... she leaned over and pushed me."
Does any of this sound familiar or remotely resemble your latest banking experience? What are banks doing to regain the trust of their clients? How are they breaking the bad habits of old and truly offering a unique customer experience?
Now is the time for Smarter Lending!! My IBM colleagues Chris Fawbush, Mike McChesney, Asit Dan, Alan Horton-Bentley, John J. Smith and I recently published a paper called, "Smarter Lending: Returns come quickly when you increase agility, make better decisions and delight customers."
Here is an excerpt on what Smarter Lending is all about:
Customer expectations are high. Banks realize that in order to keep the customers that they have and grow profitably that they have to focus on providing tailored products that appeal directly to the needs of an individual customer. However, because of old siloed systems and a reluctance to change, business and IT leaders are stymied to meet these demands...and one of the first places for banks to focus on is the lending life cycle.
The need to support the lending life cycle brings a unique set of challenges. The lending processes at some banks may have been around for decades and can be very well entrenched or a hodgepodge of lending processes and applications that are a result of mergers and acquisitions. In either case, banks find themselves managing multiple lending platforms, duplicate applications and a constant stream of software implementations. It is time for Smarter Lending!
When it comes to anticipating customer needs and making better, faster decisions, bank leaders look to Smarter Lending to help them create innovative products and services more consistently and nimbly than the competition. They need a solution that helps them generate new revenues and stronger relationships by working smarter throughout all the lending touch points.
Three steps to Smarter Lending:
1. Deliver a rich, targeted customer experience. In order to change the way customers experience your bank or credit union, you must find ways to make the most of customer process and information. Does your institution have the ability to use customer information to create insights? Can you break down silos to integrate more effectively between channels and product lines to create a richer experience? Are you able to offer bundled and competitive products that match customer needs and risk profiles based on the knowledge of customer preferences and historical data? Do you have the ability to make the customer experience more convenient, making it possible for your bank to grow "wallet share" and capitalize upon product offerings more effectively?
2. Achieve truly integrated risk management. Smarter Lending systems and practices will deliver substantial value in the area of risk management. Can your organization optimize financial and operational risk to reach a fully integrated view of risk? Can you consistently understand and manage risk exposure and reward? Are you able to effectively and globally collaborate on the management of advancing regulations and governance systems?
3. Build flexible processes and systems; integrate smarter decision making. For many years, the banking industry has depended upon existing IT systems to meet business needs. But the fact is that, for many organizations, the complexity of current systems can inhibit success. Business and IT leaders are asking some hard questions about the flexibility of their processes and systems: Can we simplify and streamline the back office to reduce its overall operational complexity? Can we bring new products and services to market quickly? Do our systems support and strengthen regulatory compliance? Can we retain our existing systems and still significantly reduce costs and risk? Can we provide to our business users more collaborative control on decision making, and can that control be changed quickly and easily while also enhancing our ability for more precise decision making?
These and many more questions will be answered in this white paper: Smarter Lending: Returns come quickly when you increase agility, make better decisions and delight customers
You can also find out more on Smarter Lending by listening to a recent Bank Systems & Technology Webcast Series sponsored by IBM with speakers Joe Boissy, Director of Business Agility and WebSphere Industry Marketing, IBM and Craig Focardi, Senior Research Director, Consumer Lending, Tower Group as they discuss,"Too Many High-Touch Lending Processes?"
Finally, join us at IMPACT 2011 where you can hear your banking peers talk about how they are solving their most pressing issues or visit our solution center and see our latest innovations in banking.
Here is just one example of the exciting banking sessions at IMPACT.
Session #2236: BanCoomeva Achieves Lending Excellence Through Automation and Risk Mitigation
Abstract: Business agility has become a must within the banking industry, especially in the lending operation process. In order to capture new markets and differentiate from other institutions, BanCoomeva needed to increase the efficiency of the lending process, reduce costs, and provide excellent service to its customers. Leveraging the IBM WebSphere BPM Suite, BanCoomeva created one of the fastest commercial and personal loans processes in the Latin-American market without sacrificing security and confidence or increasing risk. The lending process decreased from an average of 17 days to 30 minutes and they have realized an ROI of US $1MM annually.