New report examines lenders’ engagement with their commercial loan origination vendors, and how lenders might better align their CLO deployments with their goals
The COVID-19 pandemic has been the most transformative event for business lenders in decades. Given the impact of the pandemic on commercial lending, the state of collaboration and partnership between commercial loan origination (CLO) vendors and their clients is critical, particularly for achieving digitalization, pursuing modernization with APIs, and fine-tuning deployments to meet a lender’s specific needs.
In a new Impact Report, CLO Lenders and Vendors: You Don’t Send Us Flowers Anymore, research and advisory firm Aite-Novarica Group examines lenders’ engagement with their CLO vendors and, at a high level, the nature of new deals in the market, utilizing views of client references related to the CLO market.
“In the commercial-lending market, most CLO deployments can be reasonably viewed as moderate in maturity, given their limited embrace of digitalization and APIs,” said David O’Connell, Strategic Advisor at Aite-Novarica Group. “These business-lending FIs are at risk of yielding far lower returns on their CLO investment than their more API-enabled and digitalized counterparts, which are in a position to deliver more scale and a better BX.”
About Aite-Novarica Group:
Aite-Novarica Group is an advisory firm providing mission-critical insights on technology, regulations, strategy, and operations to hundreds of banks, insurers, payments providers, and investment firms—as well as the technology and service providers that support them. Comprising former senior technology, strategy, and operations executives as well as experienced researchers and consultants, our experts provide actionable advice to our client base, leveraging deep insights developed via our extensive network of clients and other industry contacts. Visit us on the web and connect with us on Twitter and LinkedIn.