From commercial to agriculture to equipment lease finance, today’s lenders are grappling with a multitude of challenges. Regardless of the vertical, financial organizations share common due diligence struggles, including:
- Lengthy review of UCCs
- Manual inefficiencies
- Scalability limitations
- Knowledge retention
- Weak reporting
- Strained internal resources
- The outpacing of processes by growth or demand
Further amplifying the already long list of onboarding struggles is escalating pressure to improve efficiency while ensuring thorough risk analysis.
As a result, smart lenders are increasingly turning to smart tools to help them optimize UCC (Uniform Commercial Code) searches, alleviate roadblocks to productivity, and mitigate risk. By embracing AI-driven solutions, organizations can successfully modernize operations and overcome these obstacles, freeing up staff members and accelerating growth.
For example, an agricultural lender and a commercial lender both faced significant challenges in their UCC processes, particularly in terms of inefficiency, scalability, and resource constraints. Both organizations were struggling to manage their filings, with the agricultural lender hindered by lengthy search times averaging 30 minutes or more and the commercial lender bogged down by a review process that often encompassed up to six hours per loan.
The agricultural lender was overwhelmed by repetitive manual tasks that handcuffed staff productivity, as well as the inability to harness deep collateral details and gain clear, insightful reports. Meanwhile, the commercial lender ― needed a way to meet expanding loan volumes without adding headcount, especially during high-volume periods. In addition to insufficient bandwidth and lack of scalability, the company also struggled with training and retention of UCC expertise.
By relying on an expert-augmented AI solution, both financial organizations were able to overcome their challenges and accomplish their objectives. The agricultural lender reduced time spent on UCC searches by 36%, while the commercial lender’s review time saw a very significant drop of 75%.
Furthermore, the solution enabled the agricultural lender to improve risk analysis by gaining deeper insights and reporting clarity, and freed up the company’s internal resources to focus on more strategic tasks; all while streamlining collateral workflows across its departments. Using the same solution, the commercial lender was able to accelerate due diligence, speed decisioning, and meet volume demands without adding headcount. In addition, both organizations now benefit from clear, consistent and actionable reports, while successfully processing a high volume of UCCs with minimal staff intervention.
Both lenders chose to implement iLien Borrower Analytics, which analyzes UCC documents and provides actionable insights based on expert-augmented intelligence. The versatile, automated, AI-powered solution can be implemented across any vertical or use case, with lenders gaining significant results, including:
- Reduced UCC search and review time
- The ability to meet loan volumes without adding staff
- Streamlined due diligence and collateral workflows
- Reporting consistency and clarity
- Minimized bias and bridge knowledge gaps
- Enhanced risk analysis with deeper insights
Learn more about how you can revolutionize due diligence and speed borrower onboarding with advanced technology and data analytics.
