Transforming CIB Lending: Navigating Automation and Building Stronger Relationships with nCino
During a recent event, nCino brought together their European Corporate and Investment Banking (CIB) clients to discuss industry trends.
As economic headwinds continue, the ability to gain a true view of what’s happening in their portfolio is more critical than ever to truly influence a bank’s appetite in various sectors or product lines.
In an ever-evolving landscape where global and regional standards converge, nCino is a trusted partner for CIB lenders navigating the trends that will continue driving our industry.
During the session, we highlighted how our solution supports CIB lenders in delivering personalised experiences from acquisition through to balance sheet and fostering stronger client relationships.
The current economic environment, driven by interest rate and other inflationary pressures, is impacting profitability and risk management in CIB lending unlike anything we’ve seen in the last decade. Alongside economic pressures, compliance with evolving regulations remains a top concern and shows no signs of slowing down. Policy changes increasingly need to be enacted in real time – something legacy technology is not equipped to do.
These systems, characterised by disparate data and manual processes, are hindering banks' ability to adapt quickly to a changing market, capture and report on data, and gain actionable insights from their portfolio.
In an industry that highly values relationships, technology needs to play a pivotal role in enabling Relationship Managers (RMs) to foster vital connections with clients, by providing the right insights at the right time.
This is critical for reducing manual, administrative tasks, allowing RMs to dedicate more time to delivering personalised experiences and keeping the balance sheet as healthy as possible. Technology needs to equip frontline users with valuable portfolio insights to drive strategic decision-making and ultimately enhance their overall lending approach in line with their banks’ appetite.
Data continues to play an important role in enabling effective decision-making. As the promise of a new age continues to loom large for banks, lenders are focusing on leveraging advanced analytics and reporting capabilities to gain valuable insights into their loan portfolios across different sectors. Many lenders are looking to understand how pervasive business problems can potentially be re-examined with new technologies like AI on the table.
However, ahead of being able to leverage new technologies and solve true business problems, FIs need to first solve their data issues to create lineage and connected data structures.
As economic headwinds continue, the ability to gain a true view of what’s happening in their portfolio is more critical than ever to truly influence a bank’s appetite in various sectors or product lines.
Optimising customer and employee experience to remain competitive and retain talent has become a major focus for many FIs. Personalisation is a growing expectation from customers, requiring CIBs to tailor their services to individual needs and contextualise the services they provide to the priorities of the corporate’s specific circumstances.
At the same time, acquiring and retaining top talent is crucial for success in a competitive market. Outdated legacy technology, however, makes potential employers far less appealing. To address this, CIBs are actively seeking ways to implement innovative tools that relieve employees from repetitive, mundane and low-value tasks. This shift allows RMs to focus on higher-value activities and provide more value to their clients and the bank.
The ability to maintain the right level of liquidity and truly optimise the way they provide lending is crucial for CIBs. However, the lack of visibility into the lending book and the fragmented nature of information across teams and departments can hinder effective balance sheet management.
Siloed processes and disparate systems make it increasingly difficult to forecast loan and distribution demand accurately, and efficiently offload loans when necessary. CIBs are actively seeking solutions that provide a holistic view of their balance sheet and streamline information flow to enhance their lending capabilities.
At nCino, we recognise the potential of leveraging new technology to transform the lending lifecycle, from application to balance sheet. Our focus is on delivering a market-leading experience to enable CIBs to optimise their financial institution today and enable the infrastructure to be market-leading tomorrow.
In the CIB context, automation is focused on achieving a better balance in the lender-client relationship. The nCino Cloud Banking Platform automates manual, non-value-adding duties that are currently taking up too much of bank employees’ time. Processes such as automating the testing of covenants for healthy performing businesses or identifying customers that are trending towards a distressed situation no longer need to be manual, time-consuming tasks.
This frees up senior employees from engaging in administrative or menial tasks and, in turn, allows employees to provide true value to clients, as their time is redirected towards higher-impact activities.
nCino's platform provides CIB lenders with valuable intelligence capabilities, connecting portfolio strategy to execution. With nCino, lenders can leverage advanced analytics and reporting tools to gain insights into their loan portfolios. Crucially, by structuring the data effectively, nCino enables lenders to access the right insights at the right time.
nCino’s platform also helps manage risk appetite and loan performance while ensuring real-time regulatory compliance. For example, in an increasingly volatile commercial real estate (CRE) market with high costs and potential defaults, nCino enables lenders to have real-time visibility and a technical capability to react in real-time to mitigate risks and adjust policy, so CIB lenders have the tools necessary to optimise portfolio management and navigate dynamic market conditions.
nCino facilitates collaboration and communication among stakeholders, promoting effective teamwork and information sharing.
Relationship managers, credit officers, product specialists and other teams can work together seamlessly, enabling them to make well-informed decisions on the same platform with access to the same consolidated data and information and ensure that a corporate feels a seamless professional experience from the different actors within a CIB.
In an ever-evolving landscape where global and regional standards converge, nCino's collaboration with prominent lenders around the world gives us deep industry expertise and the ability to embed best experiences for all products within a CIB’s suite, making nCino a trusted partner for CIB lenders navigating the trends that will continue driving our industry.
Learn more about nCino’s Corporate Banking Solution by downloading our brochure today.
As we continue to witness the exponential rise of Artificial Intelligence (AI) in the financial services industry, it's crucial to understand the inner workings of the models driving these intelligent systems.
Like many businesses across the US, community and regional banks face challenges stemming from economic fluctuations, regulatory reforms, and shifting consumer preferences. To navigate these headwinds, they’re leveraging their unique strengths, such as personalized customer interactions and local market insights.
How do you choose when to buy a solution and when to build your own in house?
It is possible to implement technology in your bank while maintaining the human touch. Commercial bankers know their business is different to retail.
Dodd-Frank 1071’s final rule, issued on March 30th, 2023, one day before the critical amendment to the Equal Credit Opportunity Act (ECOA) was anticipated to be finalized, is a game-changer for small business lenders.The rule mandates that financial institutions report certain lending data points for small business lending, including demographic data on women-owned, minority-owned and LGBTQI+-owned small businesses. This data will be used by the Consumer Financial Protection Bureau (CFPB) to enforce fair lending laws and to identify community needs and access to credit. The data collected under the rule will also be used to develop new programs and initiatives to support small businesses.
When a financial institution (FI) is required to collect and report the required data is dependent upon the number of small business loans originated during 2022 and 2023. The earliest date an FI is required to begin collecting data is October, 1, 2024 (2,500 originations) with time extensions to April 1, 2025 (100 or 500 to 2,500 originations) or January 1, 2026 (at least 100 originations), depending on circumstances.
The rule is a complex one, and FIs will need to take steps to comply with it. As your FI prepares to conform to the new requirements, here are some actions to consider.
