Industry Overview: CLO Automation

Now more than ever, lenders see more reasons to adopt CLO automation than they see reasons not to.

Boston, September 14, 2021 — Once upon a time, commercial lending was a business dominated by in-person interactions. And although this approach long persisted, despite the ready availability and moderate embrace of automated commercial loan adoption, it was all but vaporized by the COVID-19 pandemic. Now, the desire to digitalize the borrower experience, the need to support a newly remote workforce, the pursuit of scale, and the achievement of a single view of risk drive the increased adoption of CLO automation.

“The pandemic has added meaningfully to the adoption promoters lenders consider in the automation of commercial lending,” according to Aite-Novarica Group Strategic Advisor David O’Connell. “Conversely, long-standing deterrents to adoption are far less potent and seem fickle in historical retrospection,” he says. 

This report explores some of the key trends within the commercial lending market and discusses how technology is evolving to address new market needs and challenges. It also provides high-level vendor market analysis, including IT spending projections. Sources of this research are conversations between the author and users of CLO systems, briefings on systems in the market, and demonstrations of these systems. Supporting these data sources is a program of vendor evaluations that will result in an upcoming Aite Matrix, a proprietary Aite-Novarica Group vendor assessment framework.
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​​​​​​To request a press copy of this report or to speak with David O'Connell about this topic, please contact us at [email protected].

About Aite-Novarica Group:
Aite-Novarica Group is an advisory firm providing mission-critical insights on technology, regulations, strategy, and operations to hundreds of banks, insurers, payments providers, and investment firms—as well as the technology and service providers that support them. Comprising former senior technology, strategy, and operations executives as well as experienced researchers and consultants, our experts provide actionable advice to our client base, leveraging deep insights developed via our extensive network of clients and other industry contacts. Visit us on the web and connect with us on Twitter and LinkedIn.

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