Banks have a deserved reputation of being traditionalists, slow to adopt new technologies and often bound up in “how we’ve always done it around here.”
There are many good reasons for this. Fiscal responsibility requires banks to follow solid, established best practices – which includes obeying all the various rules and regulations from the FDIC and other government agencies, and, for banks with SBA portfolios, SBA SOPs and notices so as to stay fully within SBA compliance.
At the same time, as an SBA consulting group, we often hear from clients that processing, underwriting, and funding bottlenecks can be downright maddening. Borrowers are frustrated, the sales teams are frustrated, and – let’s face it – so are the folks in the SBA department striving for responsible lending while simultaneously working within the confines of – yes – “how we’ve always done it around here.”
Meanwhile, technology is moving ahead at light-speed. Everyone’s talking about AI this and AI that. And it’s important for banks to take advantage of how AI can help streamline processes and eliminate, or at least reduce, some of those bottlenecks. Bluntly, any bank that doesn’t take a careful look at how to do this is a bank that’s going to fall behind their competitors. We wrote about this in December; here’s the link.
Aside from AI, what else might you do to free up some of those bottlenecks?
Start by reviewing your process flows. Does each step follow a logical progression, or are there steps that would work better at a different place in the process?
Changing technology vendors is a massive undertaking, and not to be embarked upon lightly. But your current vendor is almost certainly releasing updates and improvements. Consider asking one of their representatives to come in and review how you’re using their tools. You’ll probably be pleasantly surprised at what’s available that your team didn’t know about.
As you go through these reviews, you’ll find things that need to be changed. A colleague of ours likes to quote Rear Admiral Grace Murray Hopper, who said, “The most dangerous phrase in the language is, ‘We’ve always done it this way.’”
Staying stuck in “this way” isn’t a plan for long-term success. At the same time, change can be hard and will often encounter resistance. That same colleague, who works with leaders on change management, says that resistance isn’t something to be steam-rolled through; that just creates more resistance and disengagement. Instead, she advocates understanding the source of the resistance.
Pay attention to the people who are doing the work – the ones in the day-to-day trenches, as it were. Do they see problems with the proposed change, and are those problems risks that need to be managed? Are they concerned – as many people are, especially with the advent of AI – that changes to the technology could put their job at risk?
When you know why someone is resisting the change, you’ll know how to address it. Be up front and honest about job security. And when someone spots a risk or suggests an improvement, evaluate it and let them know what you’re going to do about it.
That’s the best way we know of to get people on board and supporting changes that, in the end, will make their jobs easier and the results better.
As always, we’re here to help, whether that’s with reviewing and streamlining your processes, conducting loan reviews, supporting your team through SBA lender training classes, or any other aspect of SBA lending – just consider us your SBA consultants in your back pocket. Give us a call at 877-576-0819, or drop us a line through our Contact form here!
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