Technology has become one of the top concerns among the commercial lending sector. A recent report revealed that community banks are lending to developers and builders that are changing the way they attract clients. That way happens to involve the use of the most up-to-date "digital interfaces."
“'It’s important for us to create convenience not only for our clients but for their clients as well [such as subcontractors] and give them quicker and more convenient access to funds,' said David Veurink, chief credit officer and head of commercial banking at Chicago-based Countryside Bank," according to National Mortgage News.
"About 56% of Countryside’s total portfolio consists of construction loans; residential construction lending 'is a core niche of our commercial bank.'"
Automated payments is one example of how technology is affecting these transactions. The report cites Countryside's use of +Pay, by BankLabs. This platform makes payments easier and efficient and has reportedly eliminated any "need for paper with electronic lien waivers and invoice," as well as automating 1099 tax reports.
This technological push comes at a time where both C&I and CRE loans are on the rise, according to a survey of bankers conducted by the Federal Reserve.
Like many processes of years past, paper processing has simply become obsolete. Efficiency leads to more time spent attracting a larger number of clients and ultimately growing your business and that is why companies are moving towards tech to do just that.
To learn more about the increased use of tools like +Pay and more with construction lending, click on the image above.