Pub. 11 2021-2022 Issue 1

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S — H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S www.coloradobankers.org 24 lending services fromwhichever device they choose. Digital lending also enhances the back-end experience, improving lender responsivity. Creating and distributing a loan or transferring information to the core system no longer requires navigating disparate programs. • Efficiency Gains: Digital lending streamlines the lending process and lending compliance while also providing quick resolutions to requests. And like many aspects of digital banking, automating the process saves time and money. • Business Intelligence and Analytics: While big banks have leveraged data to gain market share, many community banks have fallen behind. As customer acquisition costs continue to rise, your institution must drive traffic via digital channels. A robust solution with exceptional intelligence and analytics opens opportunities to increase market share and cross-sell to current customers. Besides marketing and strategic planning, you can use dynamic intelligence dashboards to reverse engineer the digital lending process. In doing so, you can quickly determine whether you can refinance a loan to save a customer money. • Credit Risk Management: With digital lending, you can immediately feed data from a credit report into the loan origination system and assess the five Cs of credit for your customers. This feature facilitates quicker turnaround and more confident decision-making. While matrix-based lending scores may cause concern about overlooking loans or denying important customers, most digital lending solutions allow institutions to set the decision parameters. Immediately, obvious approvals or denials are processed, while others route to you for review. • Regulatory Compliance: Digital lending makes data accessible, rendering manual searches for documentation unnecessary and decreasing the risk of human error. Digital lending platforms provide a complete audit trail for regulatory review, and automation creates a more consistent, strengthened compliance environment. Automation Does Not Have to Mean Automated Decision Making Your bank sets itself apart through personal connections with customers. And because you value those relationships, digital lending may seem like you’re sacrificing that human connection. But you can strike a balance by embracing the continued from page 23 ONE LAST THING ... Did you know that you can enjoy your association news anytime, anywhere? Scan the QR code or visit: colorado-banker.thenewslinkgroup.org Check it out! The new online article build-outs allow you to: • Stay up to date with the latest association news • Share your favorite articles to social channels • Email articles to friends or colleagues There is still a flipping book for those of you who prefer swiping and a downloadable PDF. right level of automation for your institution and using these tools to inform decision making. Digital lending automates once manual tasks but should not be mistaken for automating the decision-making process. However, in some circumstances, automating decisions can yield favorable results. For instance, if your institution has a conservative lending policy, an adequately configured digital lending system maintains tight controls and ensures nothing slips through the cracks. Similarly, if your institution is an early adopter or highly specialized in a particular type of credit, automation will drastically streamline the process. Reinventing the Loan Origination Process Institutions that wish to stay relevant must embrace digital technologies. Digital lending adoption does present some challenges, including upfront costs and vendor management. But you can offset these concerns by embracing automated loan origination tools along with the right digital lending strategy for your bank, allowing you to provide your customers with the service they need while improving your processes. n Learn more about simpl ifying digital lending for your bank by watching CSI ’s on- demand webinar at csiweb.com/what- to -know. Simon Fisher is Product Manager, CSI Banking Solutions.