A Stable Foundation to Meet Growing Loan Demand

“A successful man is one who can lay a firm foundation with the bricks others have thrown at him” – David Brinkley- TV Journalist

Do you feel the economy, banking regulators and new regulations are the bricks being thrown at your institution during this economic downturn that officially began in 2008? If you are like most, you grumbled and griped but before it was all over you emerged with a stronger foundation of policies, standards, controls and systems.

The good news is that the economy is slowly stabilizing after the 2008 credit markets meltdown and loan demand is returning. Barring a Euro zone collapse, this economy should continue to matriculate back to some pre-2008 normalcy. Are you prepared for the next loan demand and credit cycle?

Since 2008, many financial institutions have been focused inward on addressing the credit issues of their existing loan portfolios rather than seeking new loan opportunities. As the economic tide slowly turns, now is a great time to address the very foundation from which to capitalize on the emerging new commercial loan demand that has likely been pent up for the last 4 years.

We all know that a strong loan policy is at the heart of an institution’s commercial lending foundation. But what about your commercial loan management systems? Are you still stuck in 1980? A strong commercial loan management system coupled with a strong loan policy will prepare your institution for the next cycle of profitable loan growth. The winners of the next round of loan demand and growth will go to those that can manage, analyze and use information in one data system across the lending enterprise. The competitive edge will come from a system that provides your institution with the most quick, nimble and accurate way to manage commercial loan data and make informed decisions. This should be at the foundation of your institution’s strategic plan to capitalize and grow profitably in the future. Since you are already a customer of Suntell as a licensee of the Square 1 Credit Suite®, you likely already know this. If you think you can use the system at a greater level, let us help you. We can advise you on the best way to get there. Maybe you know another financial institution or banker that could utilize the same advantages you are currently enjoying? Then a referral is always greatly appreciated.

At Suntell, we continually look to the future. We recently released our credit bureau integration to provide the ability to retrieve individual credit bureaus and provide automated comparisons for final credit analysis judgments on those individuals that serve as guarantors or individual commercial borrowers. Later this year we will be releasing a Portfolio Stress Testing module to help those of you that want the ability to run various portfolio stress testing scenarios against a selected set of loans to test variable changes on cash flow, interest rates and collateral values and any final impact on risk ratings and loan loss reserves and/or capital.

Let Square 1 Credit Suite® continue to be at the heart of your institution’s commercial lending foundation and prosper!

Thank you for your business and loyal patronage.

Duane Lankard

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