Overcoming the Challenges of Digital Transformation: A Guide for Commercial Lenders

Digital transformation has ramped up drastically in recent years, with spending expected to reach $2.8 trillion by 2025. However, many organizations continue to lag behind on digital transformation for a number of reasons, ranging from resistance to change to budgeting concerns.

Yet for commercial lenders, digital transformation is key to unlocking portfolio growth and operational efficiency. Lenders that embrace a digital transformation strategy can benefit from AI-powered automations that streamline decision-making and reduce time and money costs.

The good news is, advances in SaaS loan management technology have made it that much easier for lenders to implement digital transformation all while keeping overhead costs and in-house development needs to a minimum. In this blog post, we will explore some of the common challenges of digital transformation and discuss how AXIS by AIO Logic helps businesses overcome them.

The Challenges of Digital Transformation

In the commercial lending industry, digital transformation has struggled to pick up traction. Overhauling organizational tech stacks is no small feat, and businesses are hesitant that digital transformation actually provides a strong return on investment. Some of the common concerns and challenges of digital transformation for organizations include:

1. Resistance to change

Especially in highly-regulated industries, many are reluctant to make significant changes to operational processes. Revamping entire systems and workflows can be very intimidating, particularly for employees and stakeholders who have been relying on the same legacy systems for decades. Additionally, many decision-makers and executives are lacking knowledge of how automated tools work — making it more challenging for them to trust and embrace such solutions. 

2. Complexity and cost concerns

A common concern among lenders is that it’s necessary to license multiple complex systems in order to pursue digital transformation. This can be particularly daunting for businesses with limited in-house development resources since implementing multiple systems can be very expensive and time-consuming.

Fortunately, this is no longer the case. As we will soon discuss, the latest end-to-end platforms can do the work of multiple systems. 

3. Successful adoption of new tools and processes

Organizations know that once they pursue digital transformation, they will need to ensure that their employees have the right skills to effectively make use of the new technology. Digital transformation always requires some degree of investment in employee training and demos, and at times it may even be necessary to onboard new hires.

4. Security concerns and regulatory compliance

Particularly for businesses who are migrating from legacy software to the cloud for the first time, it’s common to feel concerned about the security of their sensitive data. Additionally, many organizations that are considering digital transformation feel daunted by regulatory compliance and the need to perform ongoing security upgrades. 

5. Long development timelines

Employing digital transformation strategies has been known to take several years. The process of uncovering organizational gaps and weaknesses, deciding on solutions, and then building and deploying solutions is lengthy. While company culture and mindset play a key role in fostering long-lasting commitment to innovation, it’s helpful to keep in mind that there are SaaS solutions that greatly speed up time to market.

How AXIS by AIO Logic Helps Lenders Overcome the Challenges of Digital Transformation

Pursuing digital transformation has traditionally been a complex and time-consuming process that was only attainable for large organizations with extensive resources.

Yet this is now changing thanks to advances in SaaS technology that have made it easier for businesses to upgrade their technology with less time, money, and in-house development needs. Solutions like AXIS by AIO Logic are easy to implement and can automate multiple operational functions all at once.

Here are some of the ways that AXIS helps businesses embrace digital transformation with less hassle:

1. End-to-end support

Digital transformation can be confusing, which is why it makes all the difference to work with a trusted partner who can guide you toward your digital transformation goals. We have an entire team that’s dedicated to supporting you throughout the entire implementation process, and we provide helpful demos so that you and your employees can start using AXIS with ease. 

By providing clear communication and expert insights, we help your team feel confident in the benefits of digital transformation and capable of harnessing technology to your benefit.

2. Simplified tech stack

Integrating multiple software platforms is no longer the only way to achieve digital transformation. AXIS does the work of multiple systems, enabling organizations to automate on multiple fronts while keeping their tech stack as lean as possible. AXIS features user-friendly modules for CRM, accounting, loan servicing, analytics, and more. This not only reduces licensing costs, but also helps align all departments and operational functions.

3. Robust security

AXIS keeps your data safe from cybersecurity threats while reducing compliance burdens. Our solution employs world-class security and complies with third-party security certifications such as ISO/IEC and PCI DSS. Plus, as a single end-to-end solution, AXIS is much safer than using multiple disparate systems that are each potential access points for hackers.

4. AI-powered automations

Harnessing generative AI and machine learning capabilities, AXIS can propel your processes to new heights. Our AIaaS platform works hand-in-hand with your decision-making workflows and business logic in order to analyze data and draw from existing patterns — helping you to more easily scale your portfolio and avoid risk.

5. Fast time to market

By tapping into our pre-built system and framework, you won’t need to wait years to start seeing the results of digital transformation. We work with you to get up and running fast with a tailored solution that fits your business’s needs.

Partner With AIO Logic to Purse Digital Transformation

When you partner with AIO Logic, you’re partnering with a company that’s closely attuned to the needs of commercial and middle-market lenders. Our CEO and Founder, George Souri, spent 20 years as the CEO of two middle-market lending firms. After realizing there just wasn’t a system on the market that met his needs, he decided to develop his own. 

AXIS by AIO Logic can help you reap the many benefits of a digitized operational infrastructure — such as time and cost savings, richer analytics and insights, and greater efficiency. Contact us today for a demo of our solution.