Loan Origination IT Meets Metrics, Regulations, and Risk: What Doesn’t Kill You Makes You Stronger
Report Summary
Loan Origination IT Meets Metrics, Regulations, and Risk: What Doesn’t Kill You Makes You Stronger
Lenders require technology solutions to improve credit portfolios and profitability, but can they afford them?
Boston, July 31, 2012 – A new report from Aite Group examines the challenges inherent in credit processing today, focusing on loan origination technology as key to rebuilding portfolio balances and protecting institutions from risk.
Among lenders’ greatest challenges today is profitably growing credit portfolios. Financial institutions seeking to re-establish credit as a key bottom-line contributor face challenges, including declining portfolio balances, regulatory uncertainty, increased competition, and reputational damage. As a result, traditional lenders need tools that will help them find, acquire, and retain customers who have strong risk profiles. To do this quickly and efficiently, however, lenders need more help from technology than they may be able to afford.
“Enterprise IT requirements will become more complex as financial institutions’ attention returns to process simplification, brand differentiation, and profit protection,” says Christine Pratt, senior analyst with Aite Group and author of this report. “The search for customers to acquire and retain, particularly in credit segments, and the intelligent use of internal and external information will continue to play significant roles in technology needs for years to come."
This 32-page Impact Note contains 16 figures. Clients of Aite Group’s Wholesale Banking or Retail Banking services can download the report.