The benefits of digitization are significant for both lenders and the SMEs they serve. However, for many institutions, “going digital” requires a shift from ingrained legacy processes which can present some challenges.
We’ve split these challenges into two categories: technical and adaptive.
- Data Access First, lenders must know how to access the data. Automation is the goal, but solutions can often take time and resource to build.
- Data Quality Analysis is only as reliable as the data; therefore, lenders must ensure data integrity once it is accessed. It is imperative that lenders ensure data quality throughout the digital journey.
- Data Insight Once the data is accessed, lenders must understand how to use it. Moreover, lenders must determine a strategy to standardize full data sets. This way, they can be properly utilized to provide the necessary perspective. To achieve this, lenders must have a solid a data analytics strategy in place or the internal resource to create one.
- Data Availability Finally, lenders must ensure that the required data is available at decision-making time. This is ensuring the theory of the data strategy is deployed practically, without leakage.
- Internal Lenders must consider how receptive their relationship managers are to automation and a change in process. Do they even want all this information? Determine how best to educate staff and encourage them to embrace it.
- External Digital transactions may be becoming the norm in personal banking, but not all customers are prepared for digital processes in their commercial business. Lenders must blend digital and human processes effectively and efficiently for the benefit of the client and for themselves.
To overcome these challenges, lenders must create clear implementation strategies that determine what data sets they are going to utilize and how they are going to access this data to then analyze it. If they have the internal resource, lenders often build proprietary solutions, but with planning and research, there are plenty of third party vendors with solutions that can be seamlessly integrated.