Beyond Automation: Why AI will redefine the future of commercial lending
By Kaushal Verma, Head of Head of Global Banking CoE, Newgen Software
For decades, commercial lending has been built on experience. Relationship managers nurtured client portfolios, credit committees evaluated risk, and underwriters relied on financial statements and historical performance to make lending decisions. While technology gradually digitized paperwork and workflows, the core operating model remained largely unchanged.
That model is now reaching its limits. Commercial lending is becoming significantly more complex.
Borrowers expect faster decisions. Market conditions shift overnight. Regulatory scrutiny continues to intensify. New-age businesses, from digital-first SMEs to platform-based enterprises, often don’t fit neatly into traditional credit assessment frameworks. At the same time, lenders are expected to improve customer experience while exercising greater caution in managing portfolio risk.
These competing priorities have exposed a fundamental truth: incremental digitization is no longer sufficient.
The next phase of commercial lending will not be defined by paperless processes or online applications....
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