Today, commercial lenders are facing a number of pressing and complex challenges, including the remaining effects of COVID-19, constantly evolving regulatory requirements, increased competition, and the high demand for talent. Commercial lending leaders can also look to countless opportunities to transform how they do things with an aim of being better positioned to meet those challenges. These solutions range from new loan and sales platforms, integrating automation and/or complex artificial intelligence, and data strategies (including big data), to redesign or reconfiguration of lending operating models.
KPMG surveyed executives at more than 100 financial institutions that operate across the United States and internationally to learn more about how commercial lending leaders are viewing transformation, benefiting from transformation, and prioritizing their efforts to continue transformation.
Rethinking the operating model
Organizations that refine their operating model to better align their business strategy and risk appetite and enhance the ways credit risk is monitored and controlled, will be in the best position to gain efficiency and successfully scale their lending businesses.
When considering the commercial lending organization’s priorities in transforming its operating model and processes, what are the most important drivers of this transformation?
*Earlier identification of potential problem loans/Loss mitigation