In an increasingly competitive market, businesses need a lender that can provide them with the tools and knowledge necessary to succeed. Commercial lenders must be on top of their game to keep their clients happy, attract new ones, and retain them through the years. Here are five tips for improving your bank’s commercial lending department.
Be prepared for all loan types
The first step to improving your bank’s lending department is preparing for all loan types. Be prepared to lend to all types of businesses, from startups and small business owners to large corporations. You should understand the market and the types of businesses in it to better judge the level of risk a particular client represents.
Be tech-focused
Technology is a great way to improve your lending process. Whether it’s helping you streamline the customer experience, speed up the processing time for loans, or make your business more profitable, investing in technology will help your bank’s lending department succeed.
Here are some ways that tech can help:
- Improve efficiency. With technology such as online document management systems and automated data entry tools, you can increase the speed at which loan applications are processed and approved. This increases profitability by allowing you to take on more loans with fewer resources (and people).
- Improve customer experience. Most customers want interactions with businesses to be as seamless as possible, including when using the technology!
When customers complete forms or enter information into an app on their phone or computer screen instead of filling out paper forms at home and then mailing them back in an envelope, they’re getting faster service without having to leave home first thing in the morning so that they don’t miss out on getting their money before lunchtime arrives again tomorrow!
Review the lending process
A thorough review of your lending process is a step you should take every year, if not more often. It’s an opportunity to identify improvement opportunities and ensure that your processes are as efficient and effective as possible. First, look at each loan type separately:
- What steps are involved in processing this type of loan?
- Is there any unnecessary friction in the process?
- Are there areas where customer-facing teams could be better informed about the next steps or timelines?
Next, consider how all these individual processes work together. How does one loan relate to another? How do significant changes affect multiple products? Can you streamline these relationships and make them easier for customers to navigate (and more efficient for lenders)?
Finally, consider whether anything has changed in the industry that might require rethinking some aspect of your business model.
Simplify training
The next step to improving your bank’s commercial lending department is to streamline the training process for new employees.
Do this using a software-based platform that allows you to share documents and videos with your team members and assign them specific tasks. This way, everyone has access to the most up-to-date information on loans at all times.
You can also provide training materials that explain what each employee needs to do, as well as a testing system so you can evaluate which aspects of the process are working well and which ones need improvement.
Be easy to work with
Your bank’s lending department should be easy to work with. To make lenders feel comfortable, you’ll need to work with people from all banks. It’s not just your job to help them understand the process but also to be flexible regarding financing. If a lender asks for something that doesn’t fit your standard process, do what you can do within your company policy!
Conclusion
These are the five main ways to improve your bank’s commercial lending department. These include improving the customer experience, using technology to improve productivity, using data to drive decisions, attracting talent, and having a clear business strategy. With these tips in mind, you can achieve your goals and ensure that your bank’s lending department runs smoothly!
