Loan Pathing: Revolutionizing the conventions of Lending Process

Banking CIO Outlook | Tuesday, June 18, 2019

Banks to fulfill the never-ending appetite for shareholders’ growth expectations with the all-new loan pathing, adding efficiency to the lending process.

FREMONT, CA: Loan pathing defines a clear roadmap for several loan applications based on the application’s characteristics to enhance the handling. It incorporates software automation and workflow management to fast-track the most reliable apps to approval and fast-track the weakest applications to either denial. Banks can assure that most of their resources are utilized by speeding up the handling of claims and request on either end of the application spectrum for evaluating loan application in the middle-risk range.

A good lend is what banks want to generate, but it is not a reality in the banking world today. One key goal is to make certain loans meet an average loan grade in advance of the next economic or market downturn. By not distinguishing between strong and weak loans, banks may create inefficiencies in the loan underwriting process.

Banks should spend less time on the best loans in the market with a goal of underwriting, approving, closing, and onboarding these loans as quickly as possible. Weak and non-bankable loans should be restructured in a way to improve the loan risk or declined rapidly. Giving a proper response to a prospective borrower where the business sees no potential for making the loan is better. Banks reject the weaker loan applications or bat around the system for excessive periods without resolution or feedback to the borrower. Many institutions have weak loan declination processes which can create both regulatory compliance and reputation risk. Banks seek earnings and efficiency gains that should look to their lending operations and consider adopting loan pathing to gain a strategic and economic advantage.

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