Middle-Market Bank Loan Process

Case Study: Middle-Market Bank Loan Process

A large middle-market bank was having issues underwriting commercial loans on a timely basis, with average approvals often taking longer than 4 weeks. All stakeholders in the process were frustrated: commercial lenders, credit approval and underwriting teams, loan operations and customer service groups, and most importantly, their customers.

Big Sky provided tangible, industry-specific expertise on data collection, decision analysis, investment analysis, risk management and operational efficiency to pilot the organization through the development of a comprehensive portfolio management process.

Process Development Checkpoints:

The improved underwriting process captured key information in the initial application that was missing, but vital to the underwriting and operations teams. This removed rework and improved communication. The improved process also enabled tracking to ensure loans were not getting bottle-necked with individual lenders or underwriters. Improved reporting provided insight to the operations team so they could plan around the target loan funding each day and in advance of larger loans or syndications. Overall, the improved process reduced underwriting cycle time to an average of 6 days with quick decisions (<5 days), increasing by 50%, and slow decisions (>10 days) reduced by 75% within the first 2 months. In addition, senior leaders now have much keener insight into their lending activities and the funding and credit risk reporting can be forecasted to the day, rather than the week or month.

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