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Community banks who are considering entering the small business lending space are already challenged by several barriers to entry:

  • Inefficiency of traditional loan processing
  • Changing regulatory guidance
  • Belief that small business loans are not profitable
  • Lack of quality lending opportunities to put their deposits to work
  • New competition from emerging categories (Fintechs, Challenger Banks, Neobanks)

With all of these obstacles, it would appear that defeat is looming on the horizon for community financial institutions, but with the right weapon they can and will prevail! There is one solution powerful enough to obliterate all of these obstacles and defeat the competition. This solution allows community financial institutions to profitably offer small business loans that are efficient, convenient and compliant. And that is the power of a digital loan platform.

Arm Yourself with a Digital Platform Using This 10-Part Battle Plan  

Digital lending platforms utilize an end-to-end, cloud-based technology that automates the entire lending process—from application and underwriting to set up, review and renewal—that allows your bank to provide small business loans efficiently, quickly and profitably.

How will a digital lending platform give you the competitive muscle you need in this ruthless marketplace? Here is our 10-part battle plan for small business lending victory:

  1. Save Time and Cost

A turnkey platform is automated, reducing the lengthy manual processes involved and eliminating the need for additional loan officers, so it costs significantly less to originate each loan, even the smaller loans.

  1. Automate Booking

A good digital platform will give you the ability to import loan files directly into your core to book and fund the loans. It should also integrate with numerous third-party systems to automate booking and funding the loan.

  1. Expand Your Pipeline View

You’ll have the analytics and the ability to track how many people are viewing, starting and completing your application so you can do a better job forecasting the week ahead.

  1. Use a Dynamic, Intelligent Application

Digital applications usually employ a rules engine to guide the borrower through each step and identify exceptions or incomplete sections. The best platforms will recommend the most appropriate types of loans or redirect users to other channels.

  1. Your Underwriting Policy

A digital platform will use your institution’s specific underwriting standards for each specific loan product. It will not force adoption of its own embedded underwriting standards.

  1. Track Loan Status

You will have better visibility to the stages that have been completed at each step of the process, helping to facilitate cross-departmental communication and accelerate the loan’s processing time.

  1. Renew and Review

For your existing portfolio, a digital platform will automate the collection of data, send communications to borrowers and provide a dashboard view of your annual renewals or interim reviews, reducing time and cost by as much as 50%.

  1. Automate Financial Analysis & Spreading

Cloud-based software solutions eliminate the need to manually spread deals. Your lending cycle becomes more productive, determining applicant qualification in seconds.

  1. Manage Documents Effortlessly

All documents should be housed in one central location, creating a user-friendly customer/lender portal in which all documents can easily be collected, requested, shared, processed and tracked.

  1. Maximize Loan Volume

Not only will a digital, automated system increase the profitability of each loan, but you’ll be able to originate dramatically larger volumes of loans. A digital application is like having an army of loan officers at the ready 24/7.

Download the entire white paper on Velocity Solutions’ website.

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