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However , loans have always been the core of the banking industry . Banks earn revenue by leveraging customer deposits into profitable business or individual loans . Therefore , the goal of the bank should be to vet customers and issue loans as efficiently as possible .
As an example , when the federal government announced the original Paycheck Protection Program , demand for these loans far outstripped supply . A bank with the ability to issue federally guaranteed loans left money on the table if it was unable to service customer requests .
Banks should look at the core of their business – loans – and create systems that streamline the application , approval , distribution , and management of profitable loans . The banks that flourish in the future will be those that adapt to the demand for digital solutions for all of the forms and reporting required to service loans . Other financial institutions should make a similar consideration : What is the core of your business , and how can you make it easier for customers to access it ?
Automating Existing Processes
Automation may refer to a digital utopia where human involvement is completely removed or where processes are clear and simple to follow for all humans involved . In one light , there are four types of processes in the banking industry . The breakdown below is based on the source of demand , the party that prompts the need for change . Financial institutions should facilitate self-service loan originations wherever possible . p
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