Baker Hill Prosper 2017 - Streamlining Your Lending Approval Process
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The document outlines a comprehensive approach to optimize the commercial lending process, emphasizing the need for increased productivity, accuracy, and competitive advantage through streamlined workflows and automation. Key recommendations include assessing current procedures to identify inefficiencies, fostering a diverse project team for implementation, and ensuring consistent communication and training throughout the transition. It highlights the importance of regular monitoring and employee engagement to maintain improved lending practices and data integrity.
Baker Hill Prosper 2017 - Streamlining Your Lending Approval Process
- 1. STREAMLINING YOUR LENDING APPROVAL PROCESS Sabrina Robbins, Sr. Business Process Architect Gary Skybo, Security National Bank of Omaha
- 2. Confidential & Privileged Document Optimizing your lending process • Process – Consistency – Efficiencies – Implementation • Automation • Increased productivity • Maintain credit quality
- 3. Confidential & Privileged Document Why Change? • Increased productivity – Inefficient, labor-intensive workflows keep commercial lenders and credit bogged down and create bottlenecks, further slowing the process. One of the greatest benefits of restructuring the lending process is the improved productivity that results, allowing financial institutions to handle greater loan volumes with the same number of personnel. • Greater accuracy – Inefficient analysis, redundant calculations, and hasty credit reviews that are subject to human error, also further slow the decisioning process. Streamlining the commercial lending processes greatly reduces these types of errors, providing greater accuracy and enabling analysts to better identify risk. • Competitive – A quicker decision and response time can be a key differentiator for your institution. Take advantage of the fact that people resist change.
- 4. Confidential & Privileged Document Key elements for commercial lending process • Consistency • Minimize data entry points • System integration • Roles and Responsibilities • Transparency • Improved client experience
- 5. Confidential & Privileged Document Where do I Start? • Evaluate your current commercial lending processes and identify bottlenecks and inefficiencies. • Assess how your current business development supports your growth goals, and determine how commercial lending optimization could positively impact your growth. • Review Roles and Responsibilities • Communication / Collaboration
- 6. SECURITY NATIONAL BANK OF OMAHA’S STORY Presented by Gary Skybo
- 7. Confidential & Privileged Document Pick a winning team • Winning projects need winning project teams – Recruit at least one person from each team. The more the merrier come User Acceptance Testing. – Focus on diversity by drafting both experienced and inexperienced team members. – Don’t avoid conflict. Encourage pessimists to join. – Don’t forget to include the report writers. – Pick a Project Manager with leadership experience and big picture focus to drive the implementation.
- 8. Confidential & Privileged Document Take inventory of commercial processes • Determine who does what, when and how – Don’t assume anything – Survey several members from each team – Detail the entire credit process – List out all the reports prepared by whom, for whom, for what, and how often.
- 9. Confidential & Privileged Document Clean out your garage • Trash • Identify reports that were needed by somebody once upon a time that just never went away. • Merge • Identify similar reports that should be combined. • Convert • Determine what can be done in queries, Webi, or Auto-Tag. Remember you have unlimited BDF’s! • Standardize forms, letters and reports before you automate. • Keep in Excel/Word/etc. • Some things are best left as-is. No need to convert into Advisor just for the sake of doing it in Advisor.
- 10. Confidential & Privileged Document Timing is everything • Review your process inventory results: – What needs to be transitioned to Advisor first? • Sales pipeline reporting for users and management • Customer Relationship Management (CRM) information • Support staff pipelines for Credit, DocPrep and Loan Assistants • Compliance application logs for disclosures and tracking • Credit Memo and Statement Analyzer spreads • Letters and forms
- 11. Confidential & Privileged Document Timing is everything • Review your process inventory results: – What could (or should) be transitioned later? • Tracking Items • Loan Committee Minutes • Problem Asset Reports • LaserPro integration – What can’t or won’t be transitioned?
- 12. Confidential & Privileged Document Assessment • Take an honest assessment of your bank’s current credit and lending processes, growth goals, risk appetite, efficiency ratio, and staffing ratios. – Is it time to convert to a hunter-skinner model with senior Lenders supported by junior Lenders or Portfolio Managers with senior Credit Analysts to underwrite the Opportunity? – Is it time to redefine support roles? Can the Loan Assistant continue to do everything they do?
- 13. Confidential & Privileged Document Segmentation? Do you want to segment your portfolio and/or teams? • Is it time to focus your more senior staff on larger relationships and transfer smaller relationships to junior staff? • Is it time to implement a Sales Team model? – Advisor’s “teams” at the Client, Product, Opportunity, and Tracking Item levels can assign multiple people to keep everyone informed.
- 14. Confidential & Privileged Document Phase it • Rome was not built in a day – Consider starting with the sales process to get Lender buy-in and start building the pipelines out. – Get user buy-in asap by replacing redundant and/or time consuming reports or processes early and often. • Baby Steps – Layer-in the input requirements for Opportunities. • Start with just those needed for the sales process. • Add the rest when you implement the Credit Memo. – Introduce “comments” with Past Due & OD Reports. – Get all teams involved, even if just to input one field. • Go for it! Don’t wait for things to be perfect.
- 15. Confidential & Privileged Document Communication • One size does not fit all • Win by being a tortoise and start with monthly goals. • Break training down into single topics based on your phases and priorities. • Document one-point lessons with screen shots. • Prepare for multiple one-on-one training sessions. • Set-up an Intranet site for training materials, Tips of the Day, FAQ’s, Log-In Info, etc. • Encourage users to report issues in writing to [email protected] – not your e-mail.
- 16. Confidential & Privileged Document It takes a village • The more that all the teams work in Advisor, the better data integrity will be for everyone. • It’s all about the team being more efficient • Focus on Estimated Close Date; Probability; Stage • Introduce the Outlook integration to the Lenders • Get all the teams using their pipeline queries to manage their day/week/month. • This will force Opportunities to be updated. • Be sure management is engaged. • If management is not using it for their loans or for sales reporting, users will not buy-in to the process. • Celebrate successes!
- 17. Confidential & Privileged Document Monitor your progress • Encourage user engagement • Monitor user effort/log-ins and follow-up with those not actively engaged. • Monitor and encourage management support. They should log in to view queries and reports…no more e-mailing stale data! • Eventually, there must be a hard cut-off for legacy processes. • Create “scrub” queries • Prompts users to update Opportunities or Products. • Prompts users regarding disclosure requirements. • Manage implementation to-do’s in your Advisor Outlook • Categorize by topic: Auto-Tag, Webi, Queries, Credit Memo, Tracking Items, LaserPro, Compliance, etc.
Editor's Notes
- #4: Greater accuracy Inefficient analysis, redundant calculations, and hasty credit reviews that are subject to human error, also further slow the decisioning process. Streamlining the commercial lending processes greatly reduces these types of errors, providing greater accuracy and enabling analysts to better identify risk. Increased productivity Inefficient, labor-intensive workflows keep commercial lenders and credit bogged down and create bottlenecks, further slowing the process. One of the greatest benefits of restructuring the lending process is the improved productivity that results, allowing financial institutions to handle greater loan volumes with the same number of personnel. Competitive A quicker decision and response time can be a key differentiator for your institution. Take advantage of the fact that people resist change.
- #5: Consistency Developing an efficient origination process brings consistency to all facets of the decisioning process through a set of established regulatory practices, as well as the institution’s own policies and standards. As a result, credit decisions are made based on predefined standards that satisfy regulatory and credit quality concerns. Minimize data entry points. Having a single solution or point of data entry to manage the entire commercial lending process. Should allow for a collaborative effort from start to finish for greater levels of process improvements and automation, enabling your institution to originate and close loans at a higher volume. System integration. The ability for lending solutions to integrate with your institution’s core systems is essential. Leveraging valuable data with accurate, up-to-date key processes ensures decisions are made based on sound analytics. Transparency. Regulatory demands require higher levels of transparency. Comprehensive portfolio management and 360-degree adherence become a must, enabling more control over credit policies and greater transparency. Improved client experience. Streamline process and automation can improve the client experience through faster turn around on new and renewal lending decisions, including the time consuming credit authorization write ups. Nurturing client relationships will help you positively impact retention rates with your most profitable clients.
- #8: Winning projects need winning project teams Recruit at least one person from each team. The more the merrier come User Acceptance Testing. Focus on diversity by drafting both experienced and inexperienced team members. Don’t avoid conflict. Encourage pessimists to join. Don’t forget to include the report writers. Pick a Project Manager with leadership experience and big picture focus to drive the implementation.
- #10: Trash Identify reports that were needed by somebody once upon a time that just never went away. Merge Identify similar reports that should be combined. Convert Determine what can be done in queries, Webi, or Auto-Tag. Remember you have unlimited BDF’s! Standardize forms, letters and reports before you automate. Keep in Excel/Word/etc. Some things are best left as-is. No need to convert into Advisor just for the sake of doing it in Advisor.
- #15: Rome was not built in a day Consider starting with the sales process to get Lender buy-in and start building the pipelines out. Get user buy-in asap by replacing redundant and/or time consuming reports or processes early and often. Baby Steps Layer-in the input requirements for Opportunities. Start with just those needed for the sales process. Add the rest when you implement the Credit Memo. Introduce “comments” with Past Due & OD Reports. Get all teams involved, even if just to input one field. Go for it! Don’t wait for things to be perfect.
- #16: One size does not fit all Win by being a tortoise and start with monthly goals. Break training down into single topics based on your phases and priorities. Document one-point lessons with screen shots. Prepare for multiple one-on-one training sessions. Set-up an Intranet site for training materials, Tips of the Day, FAQ’s, Log-In Info, etc. Encourage users to report issues in writing to [email protected] – not your e-mail.
- #17: The more that all the teams work in Advisor, the better data integrity will be for everyone. It’s all about the team being more efficient Focus on Estimated Close Date; Probability; Stage Introduce the Outlook integration to the Lenders Get all the teams using their pipeline queries to manage their day/week/month. This will force Opportunities to be updated. Be sure management is engaged. If management is not using it for their loans or for sales reporting, users will not buy-in to the process. Celebrate successes!
- #18: Encourage user engagement Monitor user effort/log-ins and follow-up with those not actively engaged. Monitor and encourage management support. They should log in to view queries and reports…no more e-mailing stale data! Eventually, there must be a hard cut-off for legacy processes. Create “scrub” queries Prompts users to update Opportunities or Products. Prompts users regarding disclosure requirements. Manage implementation to-do’s in your Advisor Outlook Categorize by topic: Auto-Tag, Webi, Queries, Credit Memo, Tracking Items, LaserPro, Compliance, etc.