June 21 — Sageworks has released a new white paper, “SMB Loan Renewals: Opportunities to improve efficiency and increase earnings.” The eight-page document addresses problems with the current loan renewal process and suggests improvements that can be made to make loan renewal faster and more profitable for banks.
“Today’s small business loan renewal process takes too long, costs too much, and results in lower client satisfaction,” the paper states. “This is not a winning approach in an increasingly competitive future. In fact, those that maintain the status quo will miss earnings growth as clients move their business relationship, including critical core deposits and fees, to an institution that can renew their loan fast and easy and with no credit interruption.
“Technology adds significant workflow efficiency gains and a reduction in labor investment to the process of renewing performing small business loans,” it states. “Incorporating technology to shrink the labor- and paper-intensive steps in a loan renewal process can reduce the labor investment per loan by more than 90% or $2,159.”
To download and read the entire whitepaper, click here.