Although there were signs of recovery in the first half of 2011, flagging economic growth and the escalation of the European Sovereign Debt Crisis in the second half of the year hampered robust lending growth in most developed economies.  In direct contrast with these market conditions is the increased demand for commercial credit in the first quarter of 2012 reported by a net majority of US banks, spurred in part because US banks have loosened lending standards for eight consecutive quarters. 

As institutions prepare to lend into this recovering market, most banks are faced with a potentially daunting infrastructure challenge: a mix of home-grown and legacy vendor systems that provides little information visibility, is loosely integrated, and requires a significant degree of manual data despite the recognition that commercial lending platforms must be modernized to facilitate straight-through processing (STP).

By employing the Technology Analysis tool, commercial lending executives can learn more about the current landscape and make better informed decisions by utilizing the four distinct components of the offering.  These components include:

• Current Market:  This section provides an overview of the current landscape and business drivers, while also offering a case study of one firm’s approach to commercial lending.
• Future Investment:  Executives can review projected spend in the area commercial lending, and they can also learn about the disruptive and emerging technologies that will move the industry forward in the days ahead.
• Vendor Landscape:  Not only can executives review a list of key technology firms offering lending solutions, but they can also use the diagnostic anatomy to better define their investment priorities.  In addition, product features and vendor profiles are provided so differentiators can be viewed side by side when comparing offerings.
• Product Rankings:  Finally, our “Best-in-Class” products rankings can help executives see which firms performed strongly in specific areas, based on the ranking methodology provided.

Vendors reviewed during our Commercial Loan Origination Systems Technology Analysis include: Algorithmics, Custom Credit Solutions, D+H, FIS, Harland FS, HCL, Nucleus, Moody’s Analytics, Polaris, Third Pillar, WebEquity. No matter what phase of the commercial lending project a firm may be approaching, the Technology Analysis tool will offer helpful features that will aid with strategizing, scoping, implementing and selecting an appropriate vendor. To learn more, members can download the full Commercial Loan Origination Systems Technology Analysis.