SMEs remain a cornerstone of economic growth, yet their access to finance is still hindered by slow and fragmented processes. At the same time, lenders are grappling with expanding SME portfolios, increasing regulatory scrutiny, and mounting pressure to accelerate funding decisions.
To explore solutions, a panel of industry experts—including Adam Archibald, regional director UKI at Mambu, Gareth Plummer, head of product at Recognise Bank, and Sebastien Vidal, regional vice president at nCino—examined the structural and technological challenges shaping SME lending today, from outdated infrastructure to the role of AI in modern finance.
nCino put together a vital guide to the key takeaways from the session.
Legacy systems still slowing SME lending
A major hurdle identified by the panel is the difficulty of acquiring and onboarding SME customers. Legacy systems continue to present significant barriers, particularly when they are not designed to support end-to-end lending or integrated credit risk management.
This is compounded by fragmented data, which is often inconsistent or difficult to access. As a result, lending processes become slow and disjointed, frustrating brokers and borrowers alike. Internal teams are frequently forced to work around system limitations, reducing efficiency and ultimately impacting customer experience.
The panel emphasised that lenders must adopt seamless, end-to-end processes that combine human expertise with advanced technology to remain competitive.
Speed versus certainty in lending decisions
Improving time-to-yes without sacrificing risk management or compliance was another key focus. Access to accurate, timely data is critical in enabling faster decision-making.
By sourcing verified data early in the process and presenting it effectively to decision-makers, lenders can reach conclusions more quickly while maintaining compliance standards.
The discussion highlighted that much of the friction in SME lending lies within compliance requirements, making automation essential.
Tasks such as financial data analysis, credit checks, and policy enforcement can be streamlined through technology, allowing human expertise to focus on more complex cases.
Automation and AI reshape operations
Automation was also identified as a crucial driver of operational efficiency. Many institutions still rely on outdated, batch-based processes that slow down the journey from application to disbursement.
The panel advised prioritising the automation of repetitive, low-value tasks such as manual data entry and information gathering. By leveraging technology to aggregate and present data efficiently, lenders can enhance both speed and accuracy.
A connected ecosystem
The conversation also explored the growing importance of connected banking ecosystems and AI-powered lending. While AI offers transformative potential, the panel stressed that it must complement, not replace, human decision-making.
One notable application is in generating credit committee reports, where AI can compile and verify data from multiple sources, significantly reducing manual workload. However, successful AI adoption depends on three factors: implementing it strategically, partnering with the right providers, and focusing on clearly defined use cases.
The panel concluded that lenders must embrace modern, cloud-native platforms to deliver integrated experiences for brokers and borrowers. By consolidating systems, improving data flows, and embedding governance, financial institutions can respond more effectively to evolving SME needs.
In an environment shaped by economic uncertainty and regulatory change, the ability to adapt quickly will define success. Those investing in the right technological foundations today are likely to emerge as leaders in the next generation of SME lending.
Read the full blog from nCino here.
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