Western Independent Banker - May/June 2013 - (Page 13)

By Linda Mackey Krygier Boost Your Bottom Line with Lending Process Enhancements borrowers, and with the accelerating pace of technology, potential borrowers quickly lose patience with slow turnaround or the multiple requests for information and documentation that can result from inefficient processing. WITH THE SLOW pace of economic recovery and the subsequent thin margin environment, banks are under increased pressure to do whatever they can to increase revenue and control operational costs. Before considering downsizing, management should look into some “off the shelf” initiatives within reach that have considerable potential to contain costs, enhance performance, and as a result, have a meaningful, positive impact on the financial performance and growth of the institution. The Impact of Inefficiency Inefficient processes do not only have an impact on operating costs; they can also result in lost revenue opportunities. The ripple effect of an inefficient loan origination process can spread across an institution, and its impact may be felt in operations, quality and growth. Inefficiencies in steps to originate, underwrite, close and service a loan may lead to increasing lag time. With many options available to highly qualified Opportunities for Process Improvements Although each institution is different, there are some common opportunities for loan process improvement that can make a significant difference in an organization’s results: System integration – When institutions consider system integration, the cost often seems high. However, the return on the investment of this one-time cost can be significant when compared to the ongoing costs of the time required to enter the same data repeatedly, additional audit and review steps required to identify errors, and the rework required when errors are identified. It is not uncommon to find multiple, overlapping technology solutions have been implemented by individual lines of business or departments to address specific needs without consideration for how these solutions would work together. Organizations with strong technology capabilities can design and adapt their own integration systems; others find it more practical to work with the vendors to design such a system; still others decide to find alternative systems that provide a fully integrated solution. Whichever path is chosen, it is important that the cost/benefit analysis includes identifying all the process inefficiencies associated with the lack of integration. Automated Decision System (ADS) optimization – Many institutions make use of an ADS to provide a credit decision continued on page 14 It is not uncommon to find multiple, overlapping technology solutions have been implemented by individual lines of business or departments to address specific needs without consideration for how these solutions would work together. Western Independent Banker May/June 2013 13 http://www.wib.org

Table of Contents for the Digital Edition of Western Independent Banker - May/June 2013

A Message from the Chair
Data Mining for Profits in 2013
Banks Must Face Their Own Fiscal Cliff
Boost Your Bottom Line with Lending Process Enhancements
Managing Interest Rate Risk to Achieve Strategic Profitability
Moving Mobile Banking Toward Acceptance – and Profitability
Alternative Revenue Strategies to Improve Bank Profitability
Analyzing Customer Performance to Increase Bank Profitability
WIB Service Corporation Report: Secrets to Success in 2013
Professional Development Resources
Welcome New Members
Index of Advertisers/ Advertiser.com

Western Independent Banker - May/June 2013

http://www.nxtbook.com/naylor/WIBS/WIBS0117
http://www.nxtbook.com/naylor/WIBS/WIBS0616
http://www.nxtbook.com/naylor/WIBS/WIBS0516
http://www.nxtbook.com/naylor/WIBS/WIBA0016
http://www.nxtbook.com/naylor/WIBS/WIBS0316
http://www.nxtbook.com/naylor/WIBS/WIBS0216
http://www.nxtbook.com/naylor/WIBS/WIBS0116
http://www.nxtbook.com/naylor/WIBS/WIBS0615
http://www.nxtbook.com/naylor/WIBS/WIBS0515
http://www.nxtbook.com/naylor/WIBS/WIBS0415
http://www.nxtbook.com/naylor/WIBS/WIBS0315
http://www.nxtbook.com/naylor/WIBS/WIBS0215
http://www.nxtbook.com/naylor/WIBS/WIBS0115
http://www.nxtbook.com/naylor/WIBS/WIBS0614
http://www.nxtbook.com/naylor/WIBS/WIBS0514
http://www.nxtbook.com/naylor/WIBS/WIBS0414
http://www.nxtbook.com/naylor/WIBS/WIBS0314
http://www.nxtbook.com/naylor/WIBS/WIBS0214
http://www.nxtbook.com/naylor/WIBS/WIBS0114
http://www.nxtbook.com/naylor/WIBS/WIBS0613
http://www.nxtbook.com/naylor/WIBS/WIBS0513
http://www.nxtbook.com/naylor/WIBS/WIBS0413
http://www.nxtbook.com/naylor/WIBS/WIBS0313
http://www.nxtbook.com/nxtbooks/naylor/WIBS0213
http://www.nxtbook.com/nxtbooks/naylor/WIBS0113
http://www.nxtbook.com/nxtbooks/naylor/WIBS0612
http://www.nxtbook.com/nxtbooks/naylor/WIBS0512
http://www.nxtbook.com/nxtbooks/naylor/WIBS0412
http://www.nxtbook.com/nxtbooks/naylor/WIBS0312
http://www.nxtbook.com/nxtbooks/naylor/WIBS0212
http://www.nxtbook.com/nxtbooks/naylor/WIBS0112
http://www.nxtbook.com/nxtbooks/naylor/WIBS0611
http://www.nxtbook.com/nxtbooks/naylor/WIBS0511
http://www.nxtbook.com/nxtbooks/naylor/WIBS0411
http://www.nxtbook.com/nxtbooks/naylor/WIBS0311
http://www.nxtbook.com/nxtbooks/naylor/WIBS0211
http://www.nxtbook.com/nxtbooks/naylor/WIBS0111
http://www.nxtbook.com/nxtbooks/naylor/WIBS2011MediaKit
http://www.nxtbook.com/nxtbooks/naylor/WIBS0610
http://www.nxtbook.com/nxtbooks/naylor/WIBS0510
http://www.nxtbook.com/nxtbooks/naylor/WIBS0410
http://www.nxtbook.com/nxtbooks/naylor/WIBS0310
http://www.nxtbook.com/nxtbooks/naylor/WIBS0210
http://www.nxtbook.com/nxtbooks/naylor/WIBS0110
http://www.nxtbook.com/nxtbooks/naylor/WIBS0609
http://www.nxtbook.com/nxtbooks/naylor/WIBS0509
http://www.nxtbook.com/nxtbooks/naylor/WIBS0409
http://www.nxtbook.com/nxtbooks/naylor/WIBS0309
http://www.nxtbook.com/nxtbooks/naylor/WIBS0209
http://www.nxtbook.com/nxtbooks/naylor/WIBS0109
http://www.nxtbook.com/nxtbooks/naylor/WIBS0608
http://www.nxtbook.com/nxtbooks/naylor/WIBS0508
http://www.nxtbook.com/nxtbooks/naylor/WIBS0408
http://www.nxtbook.com/nxtbooks/naylor/WIBS0308
http://www.nxtbook.com/nxtbooks/naylor/WIBS0208
http://www.nxtbook.com/nxtbooks/naylor/WIBS0108
http://www.nxtbookMEDIA.com