Top U.S. Lenders Answer Five Easy Questions: Learn to Dance in the Rain
Report Summary
Top U.S. Lenders Answer Five Easy Questions: Learn to Dance in the Rain
Portfolio growth, together with regulatory uncertainty, are the biggest challenges facing credit executives today.
Boston, April 28, 2011 – A new report from Aite Group sheds light on the opportunities and challenges for technology in the rapidly evolving U.S. retail loan market. It guides vendors dedicated to the retail lending market on focusing their technology development and marketing efforts, and provides lenders with insight into financial institutions’ directions for 2011 and beyond. The report is based on Q1 2011 Aite Group interviews with 21 senior lending executives from the top 50 U.S. banks, thrifts, credit unions, and finance companies.
In recent years, lending budgets have been cut back, cost justification has become more difficult, and compliance has been prioritized over new technology initiatives. Despite all of this, there remains a large volume of existing loans to be managed, and evidence of lenders seeking to secure technologies in order to manage risk, improve workflows, and launch new credit products; in short, lenders are looking to grow their retail loan portfolios. In fact, credit executives surveyed cite portfolio growth, together with regulatory uncertainty, as the biggest challenges they face today.
“Despite having too much work, too many regulations, and a dearth of technology, budget dollars, and time, credit executives share the belief that people and technology can still make a difference,” says Christine Pratt, senior analyst with Aite Group and author of this report. “There is a saying that life isn’t about waiting for the storms to pass; it’s about learning how to dance in the rain. And ‘learning to dance in the rain’ is exactly what credit executives are doing.”
This 19-page Impact Note contains three figures and three tables. Clients of Aite Group's Retail Banking or Wholesale Banking services can download the report.