Community Banks Can Strengthen Customer Relationships
While Satisfying Needs of Examiners 

Cypress Software Systems Commentary Explores How Institutions Can Use Technology
to Enhance Customer Service, Prove Fair Lending to Regulators

NORTH RICHLAND HILLS, Texas – Oct. 28, 2010 – Personal relationships are the building blocks for community banks, but can these institutions effectively maintain those relationships in today’s regulatory environment?

In a new commentary titled “Enhancing Personal Relationships with Technology,” Steven E. Croft, senior vice president at Cypress Software Systems LP, explores how community banks can use technology to enhance their personal relationships during this time of regulatory reform in the industry.

Federal examiners are increasingly cracking down on – and closing – community banks for unfair lending practices, many of which are tied to inconsistent underwriting based on personal relationships.

The general view is that lenders who use a personal relationship, or a simple “hunch,” as a primary underwriting criterion could open themselves up to potential discriminatory lending. So how can community banks grow and maintain their relationships while keeping regulators and their competition at bay? The answer is technology.

There’s a myth among community banks that technology creates a cold banking environment like that of the national chains. However, complex corporate structures at those large institutions enable that perception, not technology.

Technology like loan automation systems can, in fact, help boost a community bank’s customer service in many ways, while making their operations more efficient and transparent along with adhering to the myriad of federal mandates and regulations.

Decreases wait time – By using automated tools, many manual and repetitive processes can be eliminated and streamlined to decrease wait times.

Increases customer service – While decreased wait times certainly make customers happy, technology also helps bankers focus more on the specific needs of the customer, not just their loan application. Thus, lenders can build and nurture personal relationships more effectively.

Increases consistency – Automated lending and decisioning systems bring centralized underwriting consistency to a bank, thus ensuring that each loan application is equally approved or declined based on regulatory standards, as well as the bank’s lending standards and policies. This capability helps ensure fair lending practices and keeps examiners satisfied.

Increases accuracy – Centralized and automated systems also minimize mistakes and errors that often occur with manual lending processes, thus ensuring that all information and data is accurate.

Provides Reporting – Government regulators crave information. Technology can quickly produce reports that easily substantiate an institution’s participation in fair and sound lending practices.

Enhances Credit Risk Management – Banking technology enables institutions to become more proactive with credit risk management efforts, by providing the capability to test and refine lending processes and policies for maximum benefit and minimum risk.

The full commentary can be accessed on Cypress’ blog http://info.go-cypress.com.

About Cypress Software Systems

Headquartered in North Richland Hills, Texas, USA, Cypress Software Systems LP is a leading developer of automated credit application decision support technology. Cypress provides community and regional banks, finance companies and credit unions with loan application decision and tracking tools equivalent to those used by the largest national lending institutions. Clients, nationwide and in 16 countries, use the company’s flagship products, Mark IV and BizMark, to quickly and consistently process consumer and small commercial loan applications. Cypress Mark IV offers a flexible, risk-based processing approach that includes tracking consumer loan applications from point of entry to point of decision. Cypress’ BizMark loan automation software processes commercial loan requests within a customer relationship management environment. Both products may be licensed in the bundled Cypress Suite and are offered in either an application service provider (ASP) or traditional business model. The company’s product line also includes AppMark, an ASP-only consumer lending solution for community banks with assets of $250 million or less.

Web site:
www.go-cypress.com

Industry Blog:
"Sixty Seconds With Cypress"

Media Contact:
Jeff Green
Michael A. Burns & Associates Inc.
(214) 521-8596
greenj@mbapr.com