Capitalizing on the digital wave in commercial lending
Incorporating modern technology in commercial lending can help financial services firms enhance customer experiences and boost growth.
In today's competitive commercial lending landscape, offering sophisticated and tailored services is crucial. Modernizing core platforms is no longer a question of "if," but "when." A 2022 KPMG commercial lending survey1 revealed that most banks are allocating significant portions of their budgets for technology-related transformations. However, commercial lending executives still struggle to clearly articulate value-based outcomes for an expensive and time-consuming endeavor that often leaves them hesitant on how to proceed.
To reap the benefits of modernization, banks need to focus on three primary areas:
- Modern technical architecture and advanced data and analytics
- Increased operational efficiency and scalability
- Enhanced user and customer experiences
These areas are part of the KPMG Connected Enterprise, which aligns front-, middle-, and back-office operations to promote a customer-centric approach. Modernizing their platforms can help banks achieve important business capabilities, such as reducing operational costs by 15-20 percent, while simultaneously addressing workforce models, mergers and acquisitions, and technology ownership costs.
Additionally, modern loan servicing platforms significantly enhance user and customer experiences by creating a more intuitive working environment, increasing user proficiency by up to 75 percent. They can provide seamless integration with front-end portals and mobile applications, enabling customers to access self-service capabilities with ease.
As legacy systems struggle to meet market demands, it is crucial for banks to digitize now. To embark on this transformation journey, they should assess their current platform's alignment with strategic objectives, evaluate options to close any identified capability gaps, and develop a clear business case connecting strategic objectives with target state capabilities.
To understand these approaches and make the most of the transformation journey, download the paper below.
Footnote:
“Commercial lending transformation: more than technology,” KPMG, 2022
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