Commercial lending often operates in a more traditional and customized manner than the more standardized and automated world of consumer lending. Loan officers might meet with business owners to determine their financial needs, but much of the process is conducted without providing insight to borrowers.
This type of relationship constrains the flow of information between lenders and customers. It can also lead to processing delays, increased frustrations, reduced trust, and lost opportunities for providing further or upsold services.
Furthermore, people can only communicate so much without assistance. As the number of loans individual loan officers must manage increases, the more challenging it is for them to keep track of customer engagement at a level that satisfies customers.
Consequences of missed, constrained, or overwhelmed communication capabilities include:
- Borrower uncertainty. Business owners have many questions, including what information is required, when they can expect their loans to be approved, and when they will see the funds they requested. If your organization isn’t providing answers promptly (or before questions are even asked), then you could be leaving customers in an anxious position.
- Submission delays. Borrowers want to provide the required documentation to move a loan underwriting along. If they don’t have clear instructions on what documents to submit and a quick and easy means of submitting those documents, then confusion, delays, and frustrations can easily mire the commercial lending process.
- Repetitive requests. Is your organization asking customers for information they already supplied because your internal departments aren’t on the same page? Are your team members frequently asking for bits and pieces of information instead of receiving everything at once? Returning with multiple requests can test customers’ patience.
- Lost business opportunities. Engaging with customers beyond the usual points of contact can provide enhanced insights into their operations and uncover opportunities to offer extended services and serve additional funding needs. If, for example, customers are only contacted as a loan matures and not six months before, you might be leaving revenue and portfolio growth on the table.
Constricted communication between a commercial lender and customer can cause trouble in every part of the commercial lending process, including initial sales and onboarding.