Benefits of Credit Review Automation


While it seems a bit obvious to talk about the magical credit review automation, there are still many banks that haven’t adequately invested in the right technology to support their credit teams. In many cases, systems exist that are underutilized because leadership and Subject Matter Experts (SMEs) have not addressed underlying process challenges that inhibit a system’s return. Or maybe your bank has purchased an “all-in-one” system that provides a wide variety of credit-focused features, but none are thorough enough to make an impact.

Yes, technology is an investment, so you want to make sure you are investing in a system that works for both your employees and customers, as well as supports your bank’s daily operations. You also need the right partner to ideate with and help create a system tailored to your needs. We know your process before you can charge forward with the new software request line item for your upcoming budget, you need to fill in the anticipated ROI.

Here are a few areas to look at:

Employee Productivity

In the absence of technology or lackluster legacy software, your bank is missing an opportunity to unite internal credit department groups including relationship managers, credit analysts, loan administration officers, and IT.  The right platform will allow you to unite these teams and reduce time spent on manual tasks like:

  • Manual outreach to clients
  • Creation of “personalized” tracking systems to stay on top of things
  • Data consolidation and manipulation for upcoming meetings and audits

As valuable work effort shifts away from low-value tasks, your lenders will be spending more time on relationship-building and revenue-generating initiatives.

Improved Client Experience

What’s worse than receiving multiple calls from a bank, looking for the same information, from employees who don’t seem to be talking to one another? From a customer’s perspective – nothing! Customer experience is king, and if you’re not providing your employees with top-notch technology so they can streamline processes and outreach attempts, your customers will notice. In most cases, the loan process caused more dissatisfaction for customers than negotiating the rate and term, as cited in a 2016 small business credit survey by the Federal Reserve Bank.

Giving employees the right tools also significantly improves job satisfaction, which is directly passed on to their interactions with your clients and prospects.

Increased Loan Bookings

Relationship managers thrive on building strong relationships with clients and providing lending products that help their businesses thrive. The best way to give your team the most opportunity to do both those things is by looking closely at process pitfalls and investing in technology that makes their job more efficient. A quick calculation of administrative time across your core lending personnel will tell you how many more hours will free up to work on new loans.

Hassle-Free Regulatory Audits

Anytime you rely on manual processes, you run the risk of error. In banking, the focus has always been on reducing risk, so processes (or lack thereof) that open banks to compliance breaches, reputational risk, customer losses, and loan losses should be looked at closely. Many customer engagement solutions, including Microsoft Dynamics 365 and the Power Platform provide powerful data consolidation and tracking mechanisms that can be used to prepare for regulatory exams and audits.

A Power App for Credit Review Automation

For example, most credit departments are provided a list of financial requirements due for the upcoming year in November. It is up to the credit analyst to determine the best approach for contacting customers and following up on past due financial requirements. This process is usually managed on a spreadsheet. Systems like Virtual Loan Assistant, automate the collection of financial documents, year-after-year for the life of the loan. Not only email automatically generated and sent to customers, their associated third parties like accounting firms and attorneys also receive the notifications, keeping everyone on the same page. The financial document status is displayed in a work queue, or dashboard, for employees so they can track requests that are in progress, received, approved, and past due.

Improved Enterprise Value

Many of the benefits of credit review automation and general workflow automation in the banking industry enhance your bottom line — shortened sales cycles, improved cross-sell conversions, and a higher level of client support. They also improve your bank’s value. Capturing data and relationships within a single system provides a seamless way to transfer information within your financial institution. This information can also be very helpful during an acquisition.


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