Boston, November 19, 2012 – A new report from Aite Group provides insight into how banks manage commercial loan underwriting. Based on a Q3 2012 Aite Group survey of 24 North American underwriting professionals, this report considers cost-effective technologies that can help prevent loan losses and provide fast turnaround to corporations requesting credit.
Banks want to increase their returns on capital by booking more loans, but the trend among corporations is to reduce borrowing. The credit environment is also a challenge; anemic GDP growth rates and lukewarm consumer sentiment mean that corporations’ bottom lines are less able to repay bank loans. Add to these challenges banks’ mandates in areas such as cost reduction and increased regulation, and it is clear that the business of booking loans and managing credit risk has become more difficult. While technology adoption is limited in commercial lending operations, opportunities to achieve technology-driven cost reductions exist.
“Banks have a significant opportunity to improve their underwriting operations using technology,” says David O’Connell, senior analyst with Aite Group and author of this report. “Despite this opportunity to improve processes or decision-making abilities, banks often choose not to dedicate the budget or staff to even cost-effective deployments.”
Underwriting-related capabilities and vendors named in this report are Alfresco, Apache, ATG, Backbase, EMC Documentum, FIS, Fiserv, Harland, Hyland Software, IBM, Infor CRM, KliqView, Microsoft, Netsuite CRM, Onyx (Consona), Open Text, Oracle, Sage CRM, Salesforce.com, SAP, Saperion, SpringCM , Spotfire, SugarCRM, SunGard, Tableau, Wausau, Xerox, and Zoho.
This 29-page Impact Report contains 16 figures and one table. Clients of Aite Group’s Wholesale Banking service can download the report by clicking on the icon to the right.