Report

Fast times call for fast decisions in commercial lending

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The time for transformation is now

Commercial lending and leasing firms rely on fast decisions to succeed in today’s digitally connected world. To make quick decisions, these firms and their customers need to be on the same wave length, or have coherent systems and processes across functions. This means they need to fully integrate middle- and back-office operations, and deploy the right digital technology to enable seamless operations.

In 2016, Genpact Research Institute stated that the banking and capital markets industry would spend $85 billion on digital — but $57 billion of it would be wasted. So, what is slowing down the digital revolution? While many financial institutions (FIs) feel that investing in digital initiatives is a must, realizing the ROI of these projects remains a challenge. And many FIs, unable to harness the middle and back office to support the front office, fail to tightly align digital interventions to business outcomes.

Report: Fast times call for fast decisions in commercial lending

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However, many FIs have begun to acknowledge that to get a significant ROI in digital they have to streamline business processes and embrace an end-to-end transformation. But not everyone has been quick to get on board with the idea. Despite near-constant reminders that change is inevitable and keeping up is imperative, some organizations have yet to get in the game.

A year after the initial research study, we wanted to know how things were working out for commercial lending and leasing organizations. Had they managed to integrate middle- and backoffice operations into their commercial lending and leasing processes? How likely were they to embrace end-to-end business process and technology solutions? What challenges did they still face while supporting growth? What technology initiatives were they considering? How were they using solutions such as electronic payments, mobile apps, and artificial intelligence (AI) to improve the customer experience? And did they feel that their current systems and procedures were ready to support a product launch, a geographic expansion — or both? 

Between June and December 2017, we asked 70 executives for their thoughts. Respondents were predominantly senior decision makers from the financial services industry at companies with corporate revenues ranging from less than $250 million to more than $1.5 billion.