Reducing Drop-Off Rates in Commercial Lending

Defining the Problem

The user experience for loan applicants is poor, and as a result applicants regularly abandon the process.

A mid-sized UK Bank identified that 30% of loan applicants failed to complete their application checklist after engaging with a loan officer.

Prior to Detected

Prior to Detected, the Credit & Operations team pushed loan applicants through a cumbersome, manual process.

After a loan officer was assigned to an applicant, the LO sent an email checklist requesting over 20 data points and documents from the business.

The checklist included documents like operating agreements, owner resumes, tax returns, financial statements, and bank
statements. Further complicating the process, each loan type had variance in required information.

Instead of being focused on building relationships, LO's spent the majority of their time chasing applicants for information.

Impact of the Problem

The manual process created internal and external challenges for the lending team.

• Loan Officers spent their time chasing information instead of qualifying applicants and building relationships, creating a transactional relationship with the applicant.
• The underwriting team consistently needed LO's to collect additional documents or replace incorrect documents after an applicant had submitted their 'complete checklist.
• Applicants received a singular email attachment (checklist) and were expected to gather and submit all requested information via email or file drop. This resulted in 30% of checklists never being completed. Further, completed checklists were submitted in different formats and locations, forcing the C&O to waste hours gathering and normalizing submissions.

New Processes with Detected

Using a single link, applicants now complete their verification and checklist through the bank's fully branded onboarding portal.

Using Detected's KYB Dashboard, the lending team can now customize the requirements and workflow for gathering core business data, requesting documentation, and performing IDV on applicants.

As a result, applicants receive a single link to complete their checklist, customized to their specific loan.

Instead of email tennis and frustration, applicants engage an intuitive journey where core business data is automatically populated and supplemental documents are simplv uploaded to their Business Profile.

Internally, the C&O team now interacts with a singular dashboard which provides a centralized view of each applicant and the entirety of their Business Profile.