Transforming Business Account & Loan Origination to Improve Customer Experience

by | Nov 11, 2021

Transforming Business Account & Loan Origination to Improve Customer Experience

The world of account opening and loan origination continues its digital transformation, and the next logical area of origination for banks and credit unions to transform is business account opening and lending. Retail banking is now a highly digitized and competitive field, with non-traditional providers luring customers with favorable rates and a simple, online application process. Now, power players like AmEx are snapping up small business loan innovators like Kabbage, and everyone from Amazon to Shopify seems eager to be part of funding small businesses.

In this evolving landscape, how can banks and credit unions compete for business accounts and grow their commercial business? The answer lies in digital disruption. Accustomed to convenient, online applications in other areas of their lives, your business customers now expect a frictionless account opening and lending process that can take place in the comfort of their office.

To grow successfully in a post-pandemic world, your bank or credit union will need to stop asking customers/members to repeatedly come into the branch. And this goes double for banks and credit unions in remote or rural locations where branches are not easily accessible. Agriculture, construction and small businesses in these regions can really benefit from an online-only, digital approach.

Doxim can help your bank or credit union organization deliver a frictionless, digital business account opening and loan origination process that enhances customer experience. Speak to a Doxim CEM expert today


The pitfalls of traditional business origination

Currently, account opening is very cumbersome and manual, especially for partnerships and corporations, causing delays due to high error and omission rates. The process is even worse for lending as many banks and credit unions are still very reliant on Excel spreadsheets, manual calculations, and piles of printouts to review and adjudicate loans. In fact, Deloitte suggests that “30% to 40% of lending resources time is spent on non-core, automatable tasks due to disaggregated systems and manual tasks.” Documents are often sent between offices during this process, incurring courier costs and further delaying loans.

The cost to customer experience is also substantial. Many banks and credit unions still require businesses to make one or more visits to a physical branch location. For a small business entrepreneur, this is a real inconvenience, made even more difficult by the additional pressures of the COVID-19 pandemic. Overall, the process of business origination at many banks and credit unions can be fairly described as inconvenient, geographically dispersed, and hard to track. This makes business origination a natural candidate for digitization with a focus on improving the customer experience.

What does digitization promise for business orgination?

Almost every facet of the digital origination process has something of value to offer both your commercial customers and your staff. Some of the key benefits of a business origination solution include:

Improved turnaround times, with features such as instant id verification, funding and e-signatures

Reduced administration time for staff, as you can create efficient workflows and processes that keep the application moving through reviewers and departments seamlessly

Reduced regulatory compliance risk, by automating key areas of the application process such as Know Your Business (KYB) and Know Your Customer (KYC)

Enhanced customer experience, as staff can access information in real time and keep customers posted on the progress of their application

Improved conversion rates, because accounts and loans can be processed instantly, so customers don’t go elsewhere.

Complete visibility into customer finances, both personal and business related, so lenders have a holistic view of the small business owner and their credit needs. This is best achieved by using an account and loan origination solution which gives a view of all account, lending, personal and bsu history.

Enhanced collaboration. Because business origination is a complex process, it requires collaboration between cross-functional teams from different business units. These teams are often geographically dispersed. By digitizing the lending process, a bank or credit union can foster better collaboration amongst these groups.

Faster decision making, because all the necessary data, forms, and approvals are aggregated into a single, accessible source of truth for adjudication.

“Tracking credit administration, recording exceptions, approving deals, mitigating risk, and monitoring covenants – if done in one system – could empower lenders to accomplish cumbersome lending processes without duplication of effort within 15 to 20 minutes of approval by the loan committee.” – Moody’s Analytics

Reduce time to lend and delight your business customers with Doxim Digital Origination

With Doxim’s integrated, configurable, SaaS origination solution, banks and credit unions can provide a great customer or member experience, within a flexible, easy-to-use, and fully secure application.

From banking core, insurance, and lien searches to e-signature providers, Doxim Digital Origination has pre-built integrations to key technology providers that make paperless business origination possible.

By using a modern solution for all your account opening and lending needs, you will reduce keying errors, enhance collaboration, and speed up fulfillment with a single, central source for customer data.

You’ll also give business customers, like, partnerships, small businesses and corporations the optimal application experience through a secure, intuitive, and omnichannel system.

Let’s help your bank or credit union eliminate friction and speed time to business origination. CONNECT WITH ME

3. Expansion of digital products

As banking customer behavior shifts, banks must move with the times, or risk getting left behind. Many banks today are exploring the power and potential of open banking, which can allow them to offer more innovative products and services to their customers, as well as to better compete with fintech companies and other non-traditional financial service providers.

As you shift your banking business model to reach new segments or provide an enhanced array of services, communication becomes even more pivotal to your success. After all, if your customers don’t know which new services they qualify for, or how those services will help them meet their goals, then they are unlikely to explore them further. CCM technology can be leveraged here to provide personalized on-statement messaging that directs customers to the right products and services, as well as 1:1 personalized “explainer” videos to help them get started.

Adjusting your bank’s priorities to thrive in 2023

In an era of constant change, the key to successfully transforming your bank’s business model will be to stay attuned to the changing needs and preferences of customers, and to be open to exploring new opportunities and technologies that can help your FI stay competitive and relevant. But these new opportunities are doomed to fail if you do not clearly communicate their benefits and make it simple for customers to access them.

That is why transforming your customer communication strategy is the best first step to broader digital transformation. By updating your approach to communications to meet omnichannel customer needs, you also position your bank to communicate the benefits of changes in your broader organization, like new or enhanced products and services. The pace of change in banking has never been brisker – but with the right strategic approach to these changes, the future is bright.

Investing in a modern customer communication management and engagement platform is an essential part modernizing your banking strategy, as it can provide the personalized digital experiences that will keep your bank or credit union ahead of the competition. It helps provide a great customer experience, and builds rich relationships, which in turn results in customers for life and a competitive advantage in the rapidly evolving financial marketplace.

How Doxim can address the banking customer communications trends identified and help future-proof your digital banking strategy

banking customer communications trends

Doxim’s experienced consultants and omnichannel platform can help transform your customer experience in many ways, including:

  • Gathering and utilizing customer data to continually improve the personalization of communications.
  • Building trust with customers via communication (via print, PDF, HTML, email, text, and online interactive experiences).
  • Leveraging interactive video to drive personalized digital customer experiences, such as interactive statements, bills, or reports, that offer visual engagement and real-time interactivity
  • Putting customer data, including customer statements, at the fingertips of your service representatives for immediate and personal service.
  • Making a meaningful connection with value-added content, like information about philanthropic activities, on customer statements.

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