Optimizing Loan Origination while Mitigating Risk

Jim Valete, EVP at First Saving Bank, discussed how the rise in digital origination, through platforms like Biz2X, has transformed their risk perspective, particularly in credit assessment and underwriting. He tackled concerns about the evolving risk environment, including economic uncertainty and policies, and outlined how banks can prepare for such challenges. FSB’s adapting from a traditional bank to digitalization while preserving a personalized approach. Despite some customers still favoring traditional methods, FSB embraces digital preferences by prioritizing speed, standardization, and leveraging automated credit scoring systems for better risk assessment.

“It’s based on what our customer base is… 20 percent of all the businesses now are owned by the millennial generation, an increase of 27 percent over the last year. So, we’re trying, from a process standpoint, to take advantage, move faster, get standardized answers, get more information.”– Jim

Mark Sullivan, Regional Sales Manager at Thomson Reuters, highlighted the impact of digital origination on the visibility it brings to hidden risks. Although digital origination offers quick responses and document-based verifications, another new challenge is that lenders must balance speed with accuracy to remain competitive without increasing portfolio risk.

Watch the full webinar and dive into the discussion, which examines both banks and service providers, and learn about the advantages of a bank-fintech partnership in facilitating growth while mitigating risk.