Independent Banker - January 2024 - 60

CONNECTIONS TRAILBLAZER
generally the last lending component
to be digitalized in a financial
institution. Yet across the banking
sector, demand for enhancing lending
capabilities continues to build. When
Jack Henry asked bank CEOs in 2023
about their top strategic priorities
for lending over the next two years,
37% indicated " a single, end-toend
loan [origination] platform
for consumer, small business and
commercial loans. "
Community banks are among the
institutions making such investments.
" The largest majority of new clients
we see are community banks that are
moving off of manual processes into a
digitalized process, " Lewis says.
Obtaining that competitive
edge hasn't come easy for The
Killbuck Savings Bank. Miller says
implementing the loan origination
system " is not a walk in the park. " The
initial build took between four and
six months.
He says his bank benefited from
supportive senior management and
the efforts of a reliable, ambitious
team of employees who operate in
each slice of the lending process. " You
need to have people who are really
committed to making it work and
moving it forward, " Miller says.
According to Miller, the bank's
contact at Jack Henry who helped
with the build became an invaluable
" The largest majority of new clients we see are
community banks that are moving off of manual
processes into a digitalized process. "
-GARY LEWIS, JACK HENRY
asset. The partner was so critical to
the process that Miller recommends
other banks make a point to
ask potential vendors about the
experience level of the person who
would be assisting them. " You want
somebody who knows the system
intimately and understands all the ins
and outs, " he says.
An exercise in change
management
QUICK STAT
25%
Growth in The Killbuck Savings
Bank Co.'s loan volume in 2022,
which was made manageable by
its digitalized loan system.
The 123-year-old bank isn't yet
maximizing the capabilities of the
platform, since employees are still
adjusting to the new process. Moving
from a spreadsheet system to a digital
platform represents a " radical change "
for these employees, and Miller
remains mindful of that. " Let's give
them a steady diet of things they can
absorb, " he says.
For example, although LoanVantage
can highly automate the underwriting
process, the community bank takes
the more conservative approach of
handling its own underwriting. In
addition, borrowers can't yet begin
the lending process by filling out an
online application. They must call or
visit a branch, which may suit many
60 // ICBA Independent Banker // January 2024
of them just fine, since Miller says the
bank's customers tend to be " face-toface
people. "
The Killbuck Savings Bank plans
to add functionalities over time,
like turning on a borrower-facing
interface. It's also considering " autorenewing "
some loans under certain
dollar amounts for existing customers,
and it plans to move its consumer
loan and mortgage processes onto
the platform.
In the end, Miller says one of the
biggest challenges of launching a
loan origination system is getting
buy-in from users. Communicating
and empathizing with apprehensive
employees has gone a long way. He
told them that using new technology
would be bumpy for a bit and that
" it's OK to be uncomfortable. It's OK
to not necessarily like it right from
the beginning. "
He asked users to give the system a
fair try for six months and report back
to him, which eased the transition.
He says, " Within three months, most
everyone was very comfortable using
the system. " 
Mindy Charski is a writer in Texas.
Independent Banker - January 2024

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