Post LOS implementation credit delivery optimization.

The Problem 

A well-designed implementation of a Loan Origination System (LOS) provides numerous benefits to a financial institution, including scalability, enhanced controls, and robust reporting capabilities. And yet financial institutions often face challenges leveraging their new technology in a way that truly optimizes the end-to-end credit process over the long term. 

In the rush to take advantage of advancements in lending technology, financial institutions often do not perform a comprehensive review of their credit delivery model and how it can be optimized by the new technology. Maximizing the benefits of an investment in a LOS is very much a journey that is only beginning with the initial implementation. West Monroe’s experience has shown that post implementation opportunities typically fall into the following categories:
  • Properly aligning the end-to-end credit process activities to newly technology enabled roles
  • Utilizing capacity created by the LOS to increase sales and improve customer experience
  • Aligning technology capabilities with existing processes
  • Leveraging data provided by the LOS to gain business insights
  • Managing ongoing organizational, technological, and cultural change to foster an environment of continuous improvement

Our Solution

West Monroe works with our clients to manage the many levels of change following an nCino implementation. We take a comprehensive, data-driven approach to developing commercial lending target operating, change management, and technology governance models to optimize the end-to-end credit delivery process.

People

  • Identifying excess workforce capacity enabled by LOS implementation
  • Defining/refining functional roles
  • Aligning roles and associated activities with the new operating environment
  • Enabling feedback mechanisms that support continuous improvement

Process

  • Maximizing LOS workflow and queueing capabilities to ensure quickest throughput
  • Aligning credit processes with the complexity, size and risk of the credit
  • Leveraging LOS data and reporting capabilities to standardize reporting
  • Identifying and centralizing duplicative processes
  • Evaluating performance against KPIs and identifying opportunities for further improvement

Technology

  • Evaluating the cost/benefit of integrations to additional 3rd party applications
  • Assessing the timing of accepting nCino releases and/or additional modules available within the nCino platform
  • Validating the reduction in overall cost run-rate of the commercial lending platform
  • Delivering transparency into the total cost of ownership (TCO) for a commercial lending technology stack (i.e. cost per loan)
  • Refining the governance model to effectively manage and communicate enhancements to existing roles, processes, and customer experience

Change Management 

  • Maintaining leadership and staff engagement in continuous improvement
  • Driving engagement with users, the nCino Community, and customers
  • Ensuring ongoing top-down and bottoms-up communication
  • Ensuring organizational alignment with the new technology
  • Providing ongoing training and support aligned with platform enhancements and customer experience driven initiatives

The Approach 

To optimize an nCino-enabled operating model, we rationalize each component of the value chain relative to the ideal alignment of the technology platform, roles, and activities:

  • 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
  • Optimize enabling tools, processes and technology required for each component
  • Institutionalize an Organizational Change Management (OCM) methodology and a Technology Governance Model enabling continuous improvement

Benefit Realization

  • Increased RM Capacity and Sales Effectiveness 
  • Enhanced Role Clarity 
  • Improved Processes 
  • Accelerated Credit Decision & Funding 
  • Enhanced Risk Management 
  • Reduced Costs 
  • Increased Technology Adoption 



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