# Digital transformation in corporate lending. The whole is greater than the sum of its parts Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-10-26 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: Transforming Corporate Lending: The Banking Industry's Meta Description: Discover why corporate lending is like solving a Rubik's Cube in the banking industry. Learn about the challenges, the need for transformation, and the URL: https://financedigest.com/digital-transformation-in-corporate-lending-the-whole-is-greater-than-the-sum-of-its-partshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/technology-in-the-hand-of-businessmen-sbi-300058669-5-1736837525010-compressed.jpg) ![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/chris-papathanassi-1736837524911-compressed.jpg) _By **Chris Papathanassi**_ The Rubik’s Cube; a difficult nut to crack. It is multi-faceted, offers the player multiple paths to victory, requires patience, determination, and methodical problem-solving. One could say that [corporate lending is the banking industries](https://www.financedigest.com/corporate-social-responsibility-within-the-festival-industry.html "Corporate Social Responsibility Within The Festival Industry") very own Rubik’s Cube. For decades, [financial institutions big and small have suffered the industry’s](https://www.financedigest.com/matching-digital-adoption-with-cybersecurity-in-the-financial-services-industry.html "Matching digital adoption with cybersecurity in the financial services industry") equivalent of aerodynamic drag. Operations managing highly complex, almost living and breathing, multi-party financing arrangements are slow and cumbersome. They require specialist resources with intimate knowledge of deals. They are heavy on user input and highly fragmented. **Why [transforming corporate lending](https://www.financedigest.com/post-crash-banking-regulation-is-transforming-the-world-of-corporate-lending-for-the-better.html "Post-crash banking regulation is transforming the world of corporate lending – for the better") is needed** A lack of [transparency and connectivity between parties is a major challenge](https://www.financedigest.com/d-mannose-market-opportunities-trends-drivers-challenges-forecast-by-2025-transparency-market-research.html "D-Mannose Market Opportunities, Trends, Drivers, Challenges & Forecast By 2025: Transparency Market Research"), particularly in syndicated lending. Communication of mission-critical information from the agent is instruction driven (fax and email-based). Borrowers and lenders maintain their own [records such as interest and fee](https://www.financedigest.com/recruiter-hays-boosted-by-record-net-fees-but-cautious-on-outlook.html "Recruiter Hays boosted by record net fees, but cautious on outlook") calculations. They monitor covenants and conditions themselves and spend a significant amount of [time reconciling inconsistent data](https://www.financedigest.com/decision-making-in-times-of-crisis-should-they-be-based-on-gut-feeling-or-data.html "Decision-making in times of crisis: should they be based on gut feeling or data?"). There simply isn’t a single source of the truth! [Across the board this business](https://www.financedigest.com/fintechs-support-of-ukraines-digital-businesses-can-be-used-as-blueprint-across-the-world.html "Fintech’s support of Ukraine’s digital businesses can be used as blueprint across the world") operates at a high cost, high risk and the customer service is poor. The [operating models that are employed by the industry today lie at the heart of the problem](https://www.financedigest.com/australias-qantas-apologises-to-customers-for-operational-problems.html "Australia’s Qantas apologises to customers for operational problems"). They are founded upon legacy technology – technology that considers only the user experience of the institution rather than all parties involved in a transaction. This technology assumes the agent’s operational staff [act as the engine of the operation and is required to do the heavy lifting when it comes](https://www.financedigest.com/the-glorious-twelfth-what-underwriters-should-be-doing-as-the-insurance-act-comes-into-force.html "The Glorious Twelfth: What Underwriters Should Be Doing As the Insurance Act Comes Into Force") to transaction processing, compliance monitoring and reporting for their customers. Technology designed to facilitate some aspects of the process but not all! **_“The whole is greater than the sum of its parts”_** I recently read this great phrase in Iain McGilchrist’s, _The Master and His Emissary._ As humans, when trying to understand our surroundings, we aren’t concentrating on details or smaller pieces. Instead, the brain distinguishes objects as part of a greater whole and as components of more complex systems. The book argues that, over time, we humans have lost sight of the value of the ‘whole’ and the understanding that the whole is something different from the sum of its parts. This dominates our approach to how we live our lives, [see the world](https://www.financedigest.com/in-u-turn-iea-sees-world-weathering-lost-russian-oil-supply.html "In U-turn, IEA sees world weathering lost Russian oil supply"), and influences the way we problem solve. As a result, our understanding of things is often limited and we [miss the big](https://www.financedigest.com/big-brands-set-to-miss-plastic-sustainability-targets.html "Big brands set to miss plastic sustainability targets") picture as well as fundamental truths that come with it. Applying this thinking to the [world of corporate](https://www.financedigest.com/corporate-events-in-the-post-corona-world-how-to-organize-them-at-best.html "Corporate events in the post-Corona world, how to organize them at best") lending and in particular syndicated lending, I can see why it has been so difficult for the industry to move beyond the operating models and processes that cause it so much pain. You see, the general approach has been to introduce solutions that sit around [existing systems and processes](https://www.financedigest.com/solvency-ii-pushing-existing-systems-and-processes-harder-is-not-enough-for-compliance.html "Solvency II: pushing existing systems and processes harder is not enough for compliance"). Invoking high barriers to entry (cost and time-wise), associated with major integration exercises. Whether a market [initiative or in-house development project](https://www.financedigest.com/taylor-fay-homes-recruit-cordant-projects-for-innovative-property-initiative.html "Taylor Fay homes recruit Cordant Projects for innovative property initiative"), adoption has been slow and success rates low. What I have observed in my 15+ years of being in the industry is that historical approaches, with all the best intentions, have the wrong end state in mind. That end state is not the whole but the sum of its parts. In the meantime, the Rubik’s Cube nature of this [business is under extreme pressure and reaching a breaking](https://www.financedigest.com/breaking-down-the-barriers-of-ar-automation-to-help-businesses-save-money.html "Breaking down the barriers of AR automation to help businesses save money ") point. Corporate [customers are seeking a more retail-like experience](https://www.financedigest.com/why-finance-teams-are-integral-to-the-customer-experience.html "Why finance teams are integral to the customer experience"). Regulatory and market [changes are challenging the industry’s ability to adapt and introduce new products to market quickly](https://www.financedigest.com/seeking-right-tone-new-uk-pm-truss-had-to-quickly-change-gear-for-queen.html "Seeking right tone, new UK PM Truss had to quickly change gear for queen") and do so in a cost-effective and minimally disruptive way. If this industry is to effectively respond to the pressure and realise the [digital transformation](https://www.financedigest.com/digital-transformation-for-the-world-of-finance-the-rise-in-collaboration-tools-and-saas-applications.html "Digital transformation for the world of finance: The rise in collaboration tools and SaaS applications ") it aspires to, the approach needs to be different. It needs to consider the ‘whole’ from the outset. It [needs to consider every](https://www.financedigest.com/three-things-every-payments-professional-needs-know-psd2.html "Three things every payments professional needs to know about PSD2") party involved in a corporate lending transaction and not just the custodian of the deal. It needs to consider the challenges and needs and risks to the customer(s) as well as the agent and it needs to consider what a [modern more user experience would look like if the technology](https://www.financedigest.com/how-is-modern-technology-shaping-our-in-store-experience.html "How Is Modern Technology Shaping Our In Store Experience?") was not a blocker. The potential this offers is uncapped! Think entirely digital processes, no rekeying, no duplication of data. Think no more fax and email correspondence. Think data-driven insights, [market places](https://www.financedigest.com/concrete-placing-booms-market-notable-developments-geographical-outlook.html "Concrete Placing Booms Market: Notable Developments & Geographical Outlook") and more! **The [road to transformation](https://www.financedigest.com/the-road-to-transformation-raconteur-ceos-journey-from-near-bust-to-boom.html "The Road To Transformation: Raconteur CEO’s journey from near bust to boom") in lending** The road to transformation is a progressive one, but the destination [needs to be a place](https://www.financedigest.com/fintech-needs-women-5-reasons-why-this-is-the-place-to-be.html "Fintech needs women – 5 reasons why this is the place to be") that looks very different from the starting position for many organisations. That can only happen by taking a step back and looking at the bigger picture. Oneiro (the Greek word for Dream) Solutions, [set out to dream and re-imagine the world](https://www.financedigest.com/uks-most-liveable-city-manchester-sets-its-sights-on-the-world-from-tourists-to-property-investors.html "UK’s most liveable city, Manchester sets its sights on the world, from tourists to property investors") of syndicated loan administration considering the ‘whole’ not the sum of its parts. DLX assumes multi-party access, [offers online portals to borrowers and lenders for complete transparency over in-flight transactions and deal-related data](https://www.financedigest.com/aon-data-empowers-unica-to-offer-flood-insurance-for-5-2bn-canadian-peril.html "Aon data empowers Unica to offer flood insurance for .2bn Canadian peril"). Workflows are seamless and collaborative. The terms and conditions of the credit agreement are adhered to throughout. The operational effort, cost, and risk reduces, efficiency increases and the customer experience dramatically improves for all parties involved, massively [changing the game](https://www.financedigest.com/exclusive-olympics-paris-2024-plans-games-relay-changes-fewer-torches-source.html "EXCLUSIVE-Olympics-Paris 2024 plans Games relay changes, fewer torches-source") of syndicated loan administration. **_Author Bio:_** Fintech entrepreneur, Chris Papathanassi, has [launched a first-of-its-kind cloud-based platform](https://www.financedigest.com/seenthis-launches-creative-platform-to-boost-performance-and-reduce-co2-emissions-in-digital-advertising.html "SeenThis launches Creative Platform to boost performance and reduce CO2 emissions in digital advertising") to reimagine the existing software for syndicated loan administration. Fueled by the lack of [financial security](https://www.financedigest.com/how-financial-services-are-overhauling-security-to-defend-against-spoofing-scams.html "How financial services are overhauling security to defend against spoofing scams") throughout his very own childhood, Chris has made it his mission to never face those same issues, with that passion taking him to positions within the financial services industry at banks such as The Bank of Cyprus, Anglo Irish Bank and RBS and leading software vendor Finastra. With his new system, DLX (Digital Loan Exchange), he is determined to [change the way the syndicated loans space currently operates](https://www.financedigest.com/digital-marketing-trends-that-will-change-how-brands-operate-in-2021.html "Digital Marketing Trends that will change how brands operate in 2021"). [Oneiro Solutions](http://www.oneirosolutions.com), which was officially formed in July 2021, boasts that it is the only truly cloud-based platform for syndicated loan administration, and a unique service that allows for compliance monitoring and loan servicing. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---