Today in traditional banks, the average \u201ctime to decision\u201d for small business and corporate lending is between three and five weeks. Average \u201ctime to cash\u201d is nearly three months. In our view, these times will soon seem as antiquated and unacceptable as the three weeks it once took to cross the Atlantic. Leading banks have embraced the digital-lending revolution, bringing \u201ctime to yes\u201d down to five minutes, and time to cash to less than 24 hours.<\/p>\n
That\u2019s the profound result of a top priority for banks around the world: the digital transformation of end-to-end credit journeys, including the customer experience and supporting credit processes. Credit is at the heart of most customer relationships, and digitizing it offers significant advantages to banks and customers alike. For the bank, successful transformations enhance revenue growth and achieve significant cost savings. One large European bank increased win rates by a third and average margins by over 50 percent as a result of slashing its time to yes on small- and medium-enterprise (SME) lending from 20 days to less than ten minutes, far outpacing the competition.\u00a0Our analysis\u00a0suggests that a bank with a balance sheet of $250 billion could capture as much as $230 million in annual profit, of which just over half derives from cost efficiencies (such as less \u201ctouch time\u201d and lower cost of risk), and the remainder comes from revenue gains (increased applications, higher win rates, and better pricing). In this article, we will look at the six design principles that successful banks have used to build digital-lending capabilities and transform their institutions.<\/p>\n","protected":false},"excerpt":{"rendered":"
How digital credit is changing banks from the inside<\/em><\/p>\n Faster credit decisions, vastly improved customer experience, 40 percent lower costs, and a more secure risk profile. Here\u2019s how to get there.<\/p>\n","protected":false},"featured_media":47283,"template":"","meta":{"pmpro_default_level":"","tdm_status":"","tdm_grid_status":""},"product_brand":[],"product_cat":[1842,2347],"product_tag":[],"class_list":["post-75819","product","type-product","status-publish","has-post-thumbnail","product_cat-sme-finance","product_cat-study-library","pmpro-has-access","first","instock","shipping-taxable","product-type-external"],"yoast_head":"\n