2016 Commercial Banking Operational and Technology Review


In Q3 2015, Cornerstone Advisors engaged senior executives at 10 mid-size banks to understand how they manage their commercial banking operations and their deployment of technologies to support those operations.

What We Learned:

Despite the high importance placed on achieving operating efficiencies, none of the participants has implemented a commercial loan origination platform.

Other Key Findings:

  • While the loan origination platform was said to be a high priority for review participants, only one bank has completed an LOS system implementation in the past 24 months.
  • Because FIs still rely on traditional risk ratings, a large majority of the portfolio falls into a single rating (70% or greater), significantly reducing any accurate insight into portfolio quality and/or future performance.
  • The use of external prospect data is limited among participants, as many banks lack confidence in the value of prospect data available in the market today.
  • Traditional committee approval methods delay the decision to the client and create unnecessary expense given the salaries present at the committee table and the time consumed during the committee meeting.