Commercial lending technology is finally beginning to catch up with the intricacies and complexity of commercial lending. In the broader fintech landscape, digital transformation has overhauled business operations in recent years. Yet when it comes to the world of commercial lending, the power of digital technology has largely gone untapped.
Part of the reason for this stalled progress is simply a lack of awareness about the transformative power of modern end-to-end loan management solutions. Additionally, many lenders don’t realize the surprising level of ease it takes to implement these technologies, as well as the high profit margins they can generate.
To address these common misconceptions, this article will give a practical overview of the benefits of digital transformation for lenders, and in particular, how AXIS by AIO Logic simplifies the path to digital transformation.
What is Digital Transformation?
The term is thrown around a lot, so let’s define it.
Digital transformation refers to the large-scale implementation of technologies across an organization in order to drive meaningful change and optimize processes.
For commercial lenders, the cornerstone of digital transformation is next-generation loan origination and management software like AXIS by AIO Logic.
What Digital Transformation Looks Like for Commercial Lenders
By embracing a digital transformation strategy, commercial lenders can overhaul their operations in significant ways:
Siloed Departments and Applications Become Integrated Systems
Digital transformation ensures that all systems and workflows are in sync. This greatly reduces inefficiencies, errors, and tedious busy work.
Static Data Becomes Actionable Analytics
Unlike legacy systems that simply track data, modernized loan management systems can generate rich analytics and shed insights.
Extensive Manual Labor Becomes AI-Driven Systems
AI automation supercharges every step of the lending lifecycle — reducing the need for manual data entry, data aggregation, documentation preparation, and much more. Loan management systems with machine learning can automate risk assessments, determine and compile necessary documentation, and generate interest rates.
The Outcomes of Digital Transformation
Commercial lenders who strategically implement a cutting-edge tech stack are sure to see measurable results, such as:
Cost and Time Savings
A powerful loan management system is able to do the work of multiple legacy systems — combining functionalities of CRM, accounting, and loan servicing software (among others). As a result, lenders save on licensing and development costs and requirements. Additionally, a robust system can automate key processes and as a result, reduce staffing requirements.
Improved Experience for Lenders and Borrowers
Lenders and borrowers alike benefit from a faster, more automated underwriting and servicing process. Digitized applications and risk monitoring streamline and speed up core processes.
AI-Powered Decision-Making and Business Logic
When using a legacy system, manual labor is needed to aggregate data, apply business logic, and carry out key tasks. With a modernized loan management system — particularly one that uses machine learning and generative AI like AXIS — data is not just collected but also synthesized and acted upon.
Embrace Digital Transformation With AXIS by AIO Logic
Free up time spent manually servicing loans and increase your loan capacity. AXIS by AIO Logic has a robust feature set for managing every step of the loan lifecycle, and it harnesses AI to automate core processes and improve efficiency. Contact us today for a demo!