Pub 18 2021 Issue 1

24 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 N E W M E X I C O R E A L I Z E D R E A M S D espite new pushes toward digital transformations, many financial institutions continue to use manual lending processes that add costs, create delays, and make their staff work harder than they must, according to a new survey by Abrigo, the leading technology provider of compliance, credit risk, and lending solutions for community financial institutions. Abrigo surveyed nearly 250 lenders, credit analysts, chief credit officers, chief risk officers, and other professionals involved in lending and credit risk at banks and credit unions in an online survey between Feb. 18 and March 23, 2021. While the pandemic and related events created many challenges for community financial institutions, it also led to new opportunities and rewarded innovative thinking. According to respondents, more than half of financial institutions represented in the Abrigo 2021 Business Lending Process Survey have accelerated their digital transformation plans due to the pandemic and related events. The environment also drove a renewed emphasis on finding efficiencies in the lending process, said 48% of respondents. One reason for this emphasis on creating efficiencies may be attributed to a heightened demand for financial services, such as Paycheck Protection Program loans. Nearly one in three respondents reported growth in the customer or member base. Despite the digital push spurred by the pandemic, many bankers reported institutional challenges that commonly hurt lenders’ ability to drive loan growth, manage credit risk, and satisfy customers or members. Even amid the remote, physical distancing environment of 2020, only one of every three respondents in Abrigo’s survey said their institution currently offers the ability to apply online for a commercial loan. That is higher than the 20% who offered online loan applications in Abrigo’s 2020 survey. However, 13% of respondents said SURVEY: LENDING PROCESS CHALLENGES REMAIN, DESPITE PANDEMIC-DRIVEN DIGITAL PUSHES By Abrigo