The document discusses the importance of regularly reviewing and updating an origination system through a "tune up" or strategy review and configuration audit. It provides an example of Western Alliance Bancorporation that underwent such an audit with Baker Hill to understand available functionality, gain process efficiencies, and correct issues. The audit reviewed strategy, tactics, configuration, and identified areas for improvement. Recommendations included policy, process, and system usage changes. Western Alliance is taking next steps like training and implementing recommendations to optimize their origination system.

1. You can’t set it and forget it!
Getting the most from your origination system
Stephanie L. Butler‐ Director, Advisory Services
Brad Girton‐ Sr. Implementation Analyst
Jerry Kennedy‐ Senior Vice President, Western Alliance
Bancorporation

2. You can’t just “set it and forget it!”
 Are you getting the most from your origination system?
 Do you know what functionality is available?
 Are your credit policy messages out of date?
 Products and pricing five years behind?
 When is the last time your financial institution had a “tune
up?”
 Today we are going to discuss
 What is involved in a “tune up”, otherwise known as a Strategy
Review and Configuration Audit
 How Western Alliance Bancorporation leveraged an audit to
 Understand the functionality available in the system
 Gain efficiencies in process and procedures
 Correct perceived issues with the system

3. You can’t just “set it and forget it!”
When is the last time your financial institution had a
By a show of hands…..
“tune up?”

4. You can’t just “set it and forget it!”
What is involved in a Strategy Review and Configuration Audit?
 Effort between Advisory Services and an Implementation Analyst
 Attack strategy, tactics and configuration in one, three day visit

5. Attack Strategy and Tactics
 Where does your financial institution
see small business or consumer lending
in the next 2‐5 years?
 What is your definition of success?
 What are your current pain points?
 Does loan policy and procedures reflect
the current environment?
 Walk through your process
 From initial customer engagement
to booking

6. Attack Strategy and Tactics
This is far more than just “fixing” the system
 You can’t configure Bank2Business
and Bank2Consumer in a vacuum
 All the strategy, tactics and process
discussions drive configuration
 Not everything can be reflected in
the system
 That is where policy and process
step in

7. Attack Configuration
 Review all segments of the system setup,
with focus on
 Products
 Pricing
 Credit policy messages
 Bank defined fields
 Credit memo

8. Attack Configuration
 What do you wish the system had
(or could do) that it doesn’t today?

9. Attack Configuration
 What functionality aren’t you using
 System generated letters
 System generated credit memo
 Credit policy messages
 Collateral templates

10. Attack Configuration
 While on‐site, the Implementation Analyst makes
all noted changes in the system
 This may also include changes to the credit memo
 Other changes as time allows
 Changes are made in a services environment or
directly into production
 Implementation Analyst will discuss options

11. Let’s look at an actual client case…
 This financial institution went approximately ten years between implementation and a Strategy Review
and Configuration Audit.
 Stephanie Butler and Brad Girton were on‐site for three days to review
 Strategy
 Tactics
 Process
 Configuration

12. Let’s look at an actual client case…
Jerry Kennedy, Senior Vice President and Manager‐ Business and Consumer Loan Center
 A brief history of the bank
 Six full service banking divisions across the western United States
 Primary subsidiary is Western Alliance Bank
 In excess of $15 billion in assets
 1,464 employees in 47 banking offices
 Ranked 10th on Forbes 2016 Best Banks in America list
 Bank2Business client since 2003.
 Bank2Consumer client since 2005.

13. About the audit.
 Why a Strategy Review and Configuration Audit for small business/consumer lending?
 Prepare system for use of Applink
 Review internal processes
 Update credit policy message
 Further use of BHOS functionality
 Bank was not using Verification of Collateral Checklist
 Bank was not using Customer Acceptance
 Update credit policy messages
 Use pricing functionality
 Future increase in total exposure processed through the system
 Evaluate using Bank2Business for SBA express
 Not using Access database for reporting
 Many functions were very manual
 All paper process
 Loan processing and documentation outside the system

14. How it went.
 What was the process like for the bank?
 Eye Opening‐didn’t know what we didn’t know
 Had 10 people participate in the process‐half the department
 Presented the process as mandatory.
 Needed everyone on the same page in order to complete all proposed changes
 Entailed change‐challenging for most, but worth it!
 Baker Hill staff very knowledgeable and helpful
 “Lit the Fuse”‐Got the whole upgrade process started on a positive note

15. Recommendations.
 Some of the recommendations included
 Review system administrator role
 Lending authority
 Training
 Staffing
 Policy changes
 Review processes
 System usage

16. Moving forward…
 Western Alliance Bancorporation’s next steps
 System Administrator Certification Training
 User Training
 Auto Tag Training
 Introduction of paperless processing
 Applink implementation and training
 Further refine CPM’s
 Access training
 Beginning use of VCC, Booking, Laser Pro Interface

17. You can’t just “set it and forget it!”
The origination system is not a rotisserie chicken!
 Technology is living, breathing organism
 As your financial institution changes, systems must be updated
 You are only as good as your policies, processes and
procedures

18. THANK YOU

19. Optimize,Change, Innovate
#BHCM16
@bakerhill
For more information, visit our Solutions Showcase, or,
contact your presenter at Stephanie.Butler@bakerhill.com