Target Operating Model
In the age of digital disruption, it is becoming increasingly challenging to maintain a competitive advantage in the Commercial Lending marketplace. 

The Problem 

Banks find themselves taking on credit process and delivery model optimization efforts to keep pace with competitors and create unique differentiators. To be successful, banks must adopt an end-to-end view of their desired model and look across all lines of business. Along the way, banks must confront the following questions:

  • How are lines of business segmented to serve each defined segment and their own client dynamics?
  • How does the credit delivery model operate for each defined segment?
  • Does the current end-to-end credit process optimize client experience, improve cycle times, and enhance revenue?
  • How are line of business, credit underwriting, credit administration/portfolio management and loan fulfillment roles, processes, policies and technology coordinated?
  • Are there opportunities overlay technology enable automation and enhance coordination?

Our Solution

West Monroe takes a comprehensive, data-driven approach to developing Commercial Lending target operating models which includes commercial line, credit, and operational organization. We guide our clients through the following key considerations: 


Commercial Line Organization: 

  • Segmenting clients and prospects based on value to optimize business development and relationship management activities
  • Optimizing  Relationship Manager (RM) sales capacity and increasing revenue by aligning Relationship Manager (RM) activities and roles with client and prospect segmentation
  • Identifying and mitigating banker behavior that has significant downstream impact on process administration
  • Creating high impact cross sale programs to improve coordination of RMs with Wealth, Treasury Management and Capital Markets partners
  • Understanding the customer journey and interactions with the Bank

Credit and Operational:

  • Improving consistency and execution through improved loan admin structure
  • Aligning credit analysis, underwriting effort and skill with the complexity, size and risk
  • Leveraging technology for credit workflow and decisions
  • Developing strategies for streamlining renewal processes and reducing short-term extensions
  • Creating single point of contact for clients to expedite time-to-decision and time-to-close
  • Establishing highly competent, efficient commercial middle office support

To define the optimal future state operating model, we rationalize each component of the value chain relative to the ideal alignment of objectives, activities, and roles: 

  • Define major components of the end-to-end credit delivery and support process 
  • Identify all activities that map to each component of the value chain
  • Identify all enabling tools, processes and technology required for each component
  • Compare to industry best practices
  • Identify optimal resource or unit to deliver each component of value chain
  • Define key measurements and incentives to drive accountability
  • Optimize credit delivery model to drive lower costs and enhanced client interaction
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