Last week, I participated in a Finextra webinar on the topic of "Connected Credit and Compliance for Lending Growth" with panelists from ING, Vertus Partners, Misys and Credits Vision. As I prepared for the webinar, I thought back to my first exposure to commercial lending when I worked for a large regional bank and I recalled the 4C's of commercial lending from credit training: character, capacity, capital and collateral. All of those original 4C's are still relevant in today's environment when evaluating borrowers, but when considering the state of the commercial lending business in 2016, we need to think about an entirely new set of 4C's:
- Constraints on capital and liquidity
- Cost of compliance
- Changing client expectations
- Competition from new entrants
Where does this optimism comes from? Alternative lenders provide both a threat and an opportunity for banks as they make the difficult decisions on whether and how to serve a particular segment of the commercial lending market. Fintech partners offer more modern solutions than the decades-old clunkers that many banks still use; providing for more efficient and accurate decisioning, enhanced visibility and processing within the bank, and where appropriate, self-service capabilities. Connectivity with clients and partners will increasingly be the hallmark of a successful commercial lender. For more insights from the panel, please register for the on-demand version of the webinar here: Finextra: Connected Credit and Compliance for Lending Growth. 