Manage Increased Loan Volume by Automating Document Collection Processes – ABA Banking Journal

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Work has changed. But has it changed enough? For some, dramatic retooling has provided significant benefits. For others, it simply has mimicked traditional processes in a digital model, producing a garbage in, garbage out situation. Leading lenders have not only survived but thrived and part of the winning combination has been aligning digital evolution to business priorities.

In the feast or famine of volatility, lenders have generally feasted and the challenge has been a delicate balance of capturing opportunity without sacrificing employee wellness or customer satisfaction. By automating the time-consuming process of document collection, innovative lenders have been able to capitalize on increased opportunities, easing the workload for existing staff and reducing the need to hire new staff during uncertain business conditions.

20th Century Technology for a 21st Century Challenge

Lenders using 20th century tools like email, spreadsheets and Customer Relationship Management (CRM) suites have found that they are proving inadequate in meeting modern workplace demands. In the lending application process, a large volume of documents needs to be collected for the transaction to move forward. Outdated systems relying on many manual steps negatively impacts the ability to accelerate loan close times.

Downstream, this affects bigger business issues including time to revenue, quality customer experience and the visibility businesses need to make forecasts for critical decision-making. What may be worse, is the risk that is compounding in those inboxes: personal information that is not being managed in compliance with privacy laws.

Luckily, tools that provide speed, efficacy, process automation, and data integration are already available to transform new work processes. Industry experts estimate that hyper automation is occurring in the majority of financial services businesses. Yet many are not able to reap the benefits, due to disjointed, siloed and costly systems.

Manage Higher Loan Volumes by Breaking Processes Down

To realize the benefits of automation, lenders like Nucleus Capitals 7a Funding are looking across the tasks their teams do every day to identify and streamline time-consuming manual tasks. Using technology to compress the cycle of lending applications and approvals and run parts of the process simultaneously, 7a Funding has been able to dramatically increase the number of loans processed per person. The organization has also reduced the amount of time to close applications, and improve the experience for banks and lenders, making them more likely to choose to work with them in the future.

Tony Brevard, principal and CEO of Atlanta-based Nucleus Capital says Ive learned that automation isnt just for the big banks or the startup techies. Our business was growing so fast that we just couldnt handle the volume. We looked for automation to solve a particular part of our business workflow document collection and have been able to increase the volume of business we handle by nine times.

Brevard has shared his story and how hes been able to accelerate his business using automated document collection in a video available at this link.

Critical Success Factors

While many lenders have invested in digitization, industry analysts indicate that most are early in their journey. Learning from early adopters can help lenders avoid mistakes and accelerate their own initiatives. Critical success factors include:

Quick Innovation to Meet Business Demands

As lenders needs evolve, they have the opportunity to create business advantage in the tools and processes they choose to digitize and automate. Being able to innovate quickly and adapt to changing consumer demands means assembling capabilities that deliver a fast route to business objectives: revenue, efficiency and effectiveness. To do this, lenders should consider standardizing, simplifying and automating repetitive processes such as document collection for loan applications that free up employee time to focus on more strategic elements of business.

Find out more about automated document collection here.

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Manage Increased Loan Volume by Automating Document Collection Processes - ABA Banking Journal