2 Trends to Watch in Commercial Lending

By Troy Land02.07.2018

In the coming year, look for commercial banking to remain a key profit center, especially for those that focus on robust cash management, commercial lending and money movement offerings.

Here are two trends to watch:

1. Digital experiences

Across our industry, we have an opportunity to use the best e-commerce practices to enhance commercial banking offerings, which typically lag behind retail banking capabilities.

Just like consumers, businesses of all sizes benefit from easy, intuitive digital financial services experiences. For example, an enhanced commercial cash management experience can provide a centralized point for business clients to check balances, perform internal transfers, and send and approve payments, whether the client is online or using a mobile device.

In the same way, financial institutions must be able to originate, decision, and close loans quickly and easily.

A streamlined and simplified loan origination process enables quicker approvals, which helps financial institutions attract and retain commercial accounts.

Closing a loan quickly has never been more important than it is in today's dynamic marketplace.

2. Data analytics

The vast amount of data organizations are mining to reveal insights, trends, and patterns—big data—will continue to have a big effect on commercial banking in 2018.

Strong data mining capabilities can provide key insights to maximize financial performance, from managing liquidity and money movement to facilitating quick access to credit.

A full-featured cash management portal provides a 360-degree portfolio view of activities to help businesses better understand performance metrics.

Because large corporations often have dozens of banking relationships, aggregating multiple applications in a more streamlined, cohesive manner helps businesses better understand where funds are and where they should be.

TROY LAND is senior vice president, product management, business banking, for Fiserv.

(via news.cuna.org)