While gross domestic product (GDP) in many industrialized nations is expected to hover near 2% from 2011-2015, the IMF forecasts two to four times higher rates in emerging markets. Our research shows that lenders are tailoring business plans to the unique conditions of their market segments and are supporting these initiatives with strategic IT investments.
Emerging Market banks are managing growing volumes with modern core systems. Rapidly increasing processing costs are driving banks in fast growing markets to implement long-term improvements to core loan origination technology.
Mature Market banks double down on improving risk management and customer service. Banks in slow growing markets are restructuring IT systems for zero defect loan processing and continuous improvement in compliance and credit decisioning.
Analytics will be central to growth. Leading banks are investing in advanced analytics and new credit data information to personalize loan product offers while enhancing risk management and sales performance.
As a preface to our upcoming analysis of Loan Origination Systems, we encourage retail lenders to learn more about the key elements driving an investment decision for loan origination systems with our Diagnostic Anatomy.
To learn more, Retail Banking and Cards members can access Loan Origination Systems: Technology Adoption & Investment Survey Results.