Friday, December 8, 2023
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Transforming lending through cloud-based services 

Cloud technology is helping banks rethink their business models and making core functions – such as lending – more efficient. nCino is on a mission to help financial institutions optimize and accelerate their adoption of the cloud.  

Given the changing business and economic conditions, financial institutions need to adapt to improve operational performance and service quality for customers—and the only way to do that is through technology. Digital transformation on its own, however, is no longer a differentiator—it is how the technology is utilized that will help banks stand out.  

Founded in 2011 by a group of bankers and entrepreneurs dissatisfied with the commercial lending process, nCino was created as a cloud-based solution that helps drive increased transparency, efficiency, profitability, and regulatory compliance for financial institutions. Today, more than 1,700 financial institutions of all types and sizes globally are already partnered with nCino.  

“The nCino platform connects the front, middle and back office through a single platform that gives clearer portfolio visibility across deal teams, automates repeatable tasks, and embeds regulatory compliance and procedures into the credit process”, says Tim Mussche, Regional Vice President, NEMEA at nCino. 

“We help financial institutions to embed end-to-end digital processes that break down silos and achieve automation at scale – resulting in reduced costs for the bank and improved customer experiences”

Tim Mussche, Regional Vice President, NEMEA at nCino

Enabling digital transformation 

Until digital transformation is applied to backend processes and operations, banks will continue to be held back by manual inefficiencies and technology that isn’t fit for purpose.  

Mussche said, “We help financial institutions to embed end-to-end digital processes that break down silos and achieve automation at scale – resulting in reduced costs for the bank and improved customer experiences. Our platform is called the nCino Bank Operating System® because it can become the single source of truth for banks to view and manage their operations,” says Mussche. 

nCino is expertly designed by bankers to improve the way financial institutions operate and interact with customers. It also provides an agile foundation upon which a continuous digital transformation journey can be fostered so banks have the scale and flexibility to react to changing market demands and customer expectations.  

Helping financial institutions with risk management 

When it comes to financial services no two European markets are the same. Banks throughout the Nordics have nuanced, local challenges and complex regulatory frameworks.  

nCino has invested in teams with deep industry knowledge of the local markets within which they operate. This is enabling them to create market-relevant products and services catering to the specific needs of Nordic banks.  

“The nCino platform has been deployed in multi-language, multi-currency, cross-border environments, and we’re continuously optimising this foundation for the European market. We’ve also built a robust partner ecosystem to complement our solutions and keep banks in a single platform environment to help them adeptly manage risk levels and view all relationships and their exposure at multiple levels”, adds Mussche.  

Driving Efficiency through differentiation  

“Done properly, digital transformation is a massive task, and given the current economic climate some banks may be wary of overhauling their entire infrastructure in one go”, suggests Mussche. “My advice would be to use small but impactful ‘micro-transformations’ to get the journey started and realize ROI. In this approach, processes, services, or products are transformed in a modular fashion”. 

“In my experience, starting this way tends to snowball as the advantages of a single platform become clear to all and stakeholders and digital transformation feels more like a meaningful and manageable journey” states Mussche. 

Banks are understandably reluctant to discard systems and processes that still drive profitability in the short-term, and it’s difficult to take risks and make changes for an uncertain future. “At a time when banks are facing unprecedented competitive pressures, the cloud offers a means to respond forcefully,” concludes Mussche.  

While banking is undergoing a radical transformation, the fundamentals remain steadfast: lend money to create value. How banks accomplish this productively and profitably, however, is changing quickly. Years ago, if a bank and wanted to do lending in the cloud, it would have needed to build bespoke in-house. Today, packaged offerings from best-in-class partners such as nCino help banks go to market with real solutions in months, not years. 

Ditte Dyhr
Ditte Dyhr
Ditte is the Co-founder of Nordic Fintech Magazine and head of Product.