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
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.
Sean Kennelly, Vice President, Product Management, CEM
With close to 15 years of industry experience, Sean Kennelly brings a wealth of technical know-how to Doxim. During his career, he has led both Operation and Managed/Professional Services teams, and been involved in Project and Product Management; he has also held multiple sales leadership roles. For the last decade, Sean has been heavily involved in the support, implementation, design, and planning of Doxim's products and services. This experience, as well as his engagement with North-American regulated industries entities; informs his vision around customer experience, communications and payments.