Commercial lenders are under consistent pressure to support the growth of their organizations without adding administrative resources. At the same time, credit administration teams also must adapt to a continuing succession of new technologies that are reshaping how the financial services industry performs many of its most basic processes.
The convergence of these two trends – that is, the need to do more with less and the drive to embrace new technology – can produce significant benefits to banks and other commercial lenders. By embracing the change opportunities created by these new tools, forward-thinking organizations can work toward achieving a digital transformation – helping them do their work faster and more cost-effectively, while adding genuine value to their organizations and their customers alike.
In carrying out these functions, credit administration personnel can encounter a variety of challenges, including changing regulatory requirements, changing management expectations, and ongoing technological evolution such as multiple system updates. Of all the various hurdles they must overcome, data-related challenges often prove to be the most difficult issues.
For example, in one recent Crowe webinar, participants were asked to identify the challenges that are causing the biggest issues in their credit administration functions. All of the top three responses were related to various aspects of data acquisition and management, including timely acquisition of financial information, tracking and visibility of financial data, and identifying data that reveals actionable exceptions.
Leading Credit Administration Challenges