Commercial loan officers want to provide the best service possible to their customers. However, changes in technology and borrower expectations often can dilute lenders’ abilities to provide as strong and personable service as they’d like to offer.
Commercial lenders are encountering evolving challenges to their operations.
On one side, internal pressures to do more with less can strain commercial lending officers and teams. As time and resources are stretched, timelines can increase and quality of service can suffer. When response capacity is at a premium, lenders might pay more attention or respond more quickly to certain borrowers, to the detriment of others.
On the other side, technology has increased borrower demand for self-service. As apps open access to more banking-related functions, customers expect the same access to commercial loans as well.
Neither of these factors means that commercial loan officers and teams have become obsolete. The experience of a commercial lender is still needed. And with well-considered strategies and technology, lenders can effectively apply their guidance and services where they can make the most difference and still give borrowers more of the access and control they expect in the process.
Let’s explore three common sources of frustration for commercial borrowers and how strategic and technological support can help resolve them.
Most commercial borrowers are eager to receive their loans and get to work on their projects. Borrowers prefer faster turnarounds, but timelines extended by a multitude of manual processes can run the clock longer than what is typically expected.
Automation can help speed up the process both for borrowers and lenders. Commercial lenders can spend less time entering data and hunting for information in emails and more time working with customers. Borrowers can provide needed items on their own schedule without having to wait for direct updates from their commercial lending contact.
Additionally, a digital portal that provides an application status can show borrowers where they are in the commercial lending process. Such accessible transparency can help reduce the anxiety of waiting and manage expectations.
When borrowers choose to work with a commercial lending organization, they need to provide a significant amount of documentation and information. The natural expectation is for lenders to handle this information quickly, confidently, and securely, and to provide transparency on the need for and intended use of their information.
Any breakdown in the commercial lending process that causes lenders to ask for the same information more than once, request information they forgot to ask for the first time, or not clearly state which information is needed can quickly sow confusion and doubt in borrowers.
If borrowers ask the following questions, lenders should take note so they can address underlying issues:
Providing borrowers with a secure place to send documentation and a comprehensive list of what is required during the commercial lending process can help lenders deliver faster loan progress to their borrowers.
Borrowers often request commercial business loans to pursue ambitions that are personal to them. Many – if not most – borrowers want the assurance of lenders who understand the business they are pursuing lending toward.
The degree to which this assurance is desired varies from borrower to borrower. Some want to have their hands held throughout the entire process, while others prefer to take care of any part of the process they can on their own, knowing lenders are available if needed.
While the instinct to provide as much personal attention as possible is strong in most lenders, time is often limited. Why not provide tools to more independent borrowers who can advance their loan processes so personal attention can be provided to those who want or need it more? A lender’s ability to tailor its approach to each type of borrower can help everyone feel more comfortable during the commercial lending process.
Technology is changing many borrowers’ commercial loan expectations. But the strengths of personal attention do not need to be sacrificed. Technology can be applied on a customer-friendly commercial lending platform that helps both borrowers and loan teams stay on track.
Everyone on the lender side can have collaborative access to loan statuses and all necessary items. Status indicators and notifications can help guide the process along with decreased potential of overlooked needs.
At the same time, borrowers can access an easy-to-use portal from mobile or desktop devices to track the progress of their loan applications and securely upload their documents.
All the important correspondence can still happen between lenders and borrowers, but with less scrambling for information and more confidence in the process. Commercial lenders can spend less time on manual and document-seeking and more time providing personal service where it can make the biggest impact.
Crowe CX for Commercial Lending is part of a suite of products that can transform your organization’s commercial lending process, built on the foundation of improving lender-borrower experiences. Our specialists can show you more or discuss further ways to focus the heart of your services on your borrowers.
