Risk Worries Will Force Commercial Lenders to Embrace Technology - Tower
New research from TowerGroup claims that an increasing focus on risk management will trigger a range of strategic technology initiatives in the commercial lending sector. The report argues that commercial lending is plagued by too many systems, too many manual processes and too much operating expense. ‘Though the technology exists to address many of the industry’s current challenges, the organizational structure and history of most commercial lending units have tended to thwart efforts to collaborate on unified systems,’ the firm asserts. According to the report, the next 10 years will witness a ‘profound’ change in both the sector and its technology due to an industry-wide shift from managing credit to managing assets and the growing primacy of risk management. In addition, the credit and operational risk requirements of the new Basel II Accord are expected to make risk management the ‘spark that ignites the coming breakthrough’ in commercial lending technology.