Bahaa Abdul Hussien in this blog shares his views on the digitalization of commercial lending with his audience. Commercial lending requires maintaining a fine balance between the risk and reward. A digital strategy is an important way to maintain this balance. Banks have shifted to digital mode to maximize their resources and offer better services to their customers. It has helped them overcome the challenges of managing the remote staff. Automation has become necessary to manage the loan application and review process.

1. Digitalization of Commercial Lending
Bahaa Abdul Hussien in this blog shares his views on the digitalization of commercial
lending with his audience. Commercial lending requires maintaining a fine balance
between the risk and reward. A digital strategy is an important way to maintain this
balance. Banks have shifted to digital mode to maximize their resources and offer better
services to their customers. It has helped them overcome the challenges of managing
the remote staff. Automation has become necessary to manage the loan application and
review process.
Simplifying Commercial Loan Applications
Banks are under pressure to reduce the burden of data collection on their borrowers.
The business loan applicants can be offered a simplified borrowing process with the
help of digital applications. Better automation and electronic public data retrieval reduce
the burden on loan applicants. They have fewer fields to fill in the loan application
because most data they have to provide can be sourced from available sources. It
speeds up the loan application process.
Paperless Transactions
Digital innovations have allowed all industries to reduce the use of paper documents.
The banking sector is not resistant to this trend. Digital technologies have allowed it to
offer faster, simpler and better services to the business customers. Electronic contracts
and e-signatures have made it possible for the banks to digitally obtain many types of
data including the signatures of loan applicants.
“With most governments and banking institutions giving legal validity to the e-signatures
and digital records, it has become easier to conduct commercial loan transactions
digitally. The recent pandemic has only expedited the adoption of such technologies.”,
added, Mr. Bahaa Abdul Hussien.
It is now possible to conduct most secured and unsecured commercial loan transactions
without submitting paper documents. These transactions can be conducted
electronically. Some notarization and paper records are still needed when real estate
properties are used as the security. However, remote and electronic notarization has
increased the adoption of paperless transactions. Remote notarization is now valid
across 25 states, while 23 other states have implemented emergency remote
notarization due to the recent pandemic.
Over 68% of US counties now support e-recording for property documents. Users can
submit the documents with e-stamp. It speeds up the submission of these papers to the

2. title insurance provider. Real estate property documents and e-signatures have
eliminated the need for wet ink signatures.
Remote notary technology and electronic signing have increased the speed of loan
application and approval process. Commercial loan transactions can be conducted in a
paperless way. Many services needed to review, service, track and maintain commercial
loans have been automated. Now the applicants simply feed digital data into the
required fields. There is no need to submit paper documents. These digitization and
automation trends will continue in the coming years and improve banking experience for
the commercial loan applicants.
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