With experience in credit underwriting, processing and operations management, Lynn Yznaga of Broadway Bank in San Antonio, has witnessed firsthand the digital transformation reshaping the lending landscape.
In a conversation with host Jim Marous on the Banking Transformed podcast, Yznaga discusses the challenges and opportunities in modernizing lending processes, the importance of balancing technology with personal touch — and how financial institutions can prepare for the future of AI in banking.
Q: Looking at banking today and especially over the last four years, what has been the biggest change in the lending process from your perspective?
Lynn Yznaga: Digital growth has been the most significant change. If you’re not where your customers are, whether that’s face-to-face in a branch setting or through technology available wherever they are, you might miss out on an opportunity. We’ve moved from a primarily branch-based process to one that needs to be accessible anytime, anywhere.
This shift mirrors the broader trend in consumer behavior, where convenience and accessibility have become paramount. Just as ride-sharing apps transformed transportation and food delivery services changed how we dine, digital lending is reshaping how consumers access financial services.
Q: When you’re moving to digital from what used to be a branch-based process, how do you bring those other elements to bear? What are you trying to do in owning the lending process today to make it so the true experience rather than just speed is there?
Yznaga: One thing is definitely taking the time to know your clients. Who is your client base? How do they like to communicate? It’s crucial to have a good loan officer up front who does a great interview with the customer and can bring that information to the back office. This allows us to provide either online tools and resources or face-to-face meetings, depending on the client’s preference.
We still have many clients who prefer to come in and meet face-to-face. Whatever their choice in communication, we want them to feel like they’re part of the process and making the choices. People today want to be involved and know what’s going on at all points.
Balancing Technology and Personal Touch
Q: Over the last four years, how has the experience from the customer standpoint changed from a speed and scale standpoint?
Yznaga: Many customers who have been through several home-buying experiences have told me that every time they do it, it seems to get worse in terms of documentation requirements. The application itself has grown from a three or four-page document to seven to nine pages, depending on how many applicants you have and how much additional information you need to intake.
However, from an application standpoint alone, we now have many tools that are intuitive. You can answer just a few questions and if you don’t need to provide more information, it bypasses those sections and makes it easier for the client. For difficult cases like self-employed individuals, we’re able to cater to those situations and really personalize it based on everyone’s scenario. That’s been a big change because it used to be a one-size-fits-all approach.
This evolution in the lending process reflects a broader trend in personalization across industries. Just as streaming services tailor content recommendations to individual viewers and e-commerce platforms offer personalized shopping experiences, the lending industry is moving towards more customized, user-friendly processes.
“If you’re not where your customers are, whether that’s face-to-face in a branch setting or through technology available wherever they are, you might miss out on an opportunity.”
Q: You worked with MeridianLink and have a loan operating system that basically streamlines the process very well. What have been the parts that have made the biggest impact on your organization since implementing this solution?
Yznaga: The most significant impact has been the ability to combine multiple applications into one centralized system. Previously, we had roughly six or seven different applications that we were using bank-wide, including an imaging system, an income calculation tool and various vendors with separate sign-ons. With our new system, we’ve been able to integrate all of this information and data into one spot.
This integration has made our processes much more efficient and our turnaround time has drastically reduced. We were able to shave off at least six days from the purchase money process. Additionally, customers now have a tool through their online application where they can see where their application is at any given time, providing transparency and reducing the need for status update calls.
The consolidation of multiple systems into a single, integrated platform mirrors trends in other industries. For example, customer relationship management (CRM) systems have evolved to incorporate marketing, sales and customer service functions, providing a holistic view of customer interactions across departments.
Navigating Compliance and Risk Management
Q: How do you personally balance being risk-sensitive and compliance-sensitive when implementing new systems, processes and procedures?
Yznaga: I have an amazing compliance team and we meet at least once a month. We have a compliance committee where we talk about what we’re seeing, what the trends are in applications and they’re also feeding back information to us about upcoming changes. We also have monthly meetings with all lines of business within the bank, where we share what’s going on in mortgage and hear what’s happening in commercial lending.
This approach allows me to speak more holistically to clients about what to expect, even if I’m handling a specific type of loan for them. Staying up to date and really befriending your compliance partners is key to balancing innovation with risk management.
The collaboration between lending and compliance teams reflects a broader trend in organizational management, where silos are breaking down in favor of more integrated, cross-functional approaches. This shift is evident in industries ranging from tech startups to manufacturing, where agile methodologies and DevOps practices encourage closer collaboration between traditionally separate departments.
Read more:
- The Future of Lending Is Up To the Innovators Who Personalize
- For Gen Z and Millennials, Embedded Loans Beat Traditional Credit
Q: How do you manage the employee experience when implementing new, disruptive technologies?
Yznaga: The best way to get someone on your side is to invite them into the battle. We brought in some of our retail partners to provide feedback on how the application looks and feels from their perspective. We also involved loan officers who are part of the application intake experience. They were able to provide quick, immediate feedback on the spot and we were able to make changes based on their input.
By involving employees in the process, they felt like their voice was heard and they had a seat at the table. As a result, when we went live with the new system, it was the smoothest experience I’ve ever had with any rollout.
This approach to employee engagement in digital transformation aligns with broader trends in change management and organizational psychology. Companies across industries are recognizing that successful digital transformations require not just technological upgrades, but also cultural shifts and employee buy-in.
Preparing for the Future of AI in Banking
Q: When you’re talking about the future, what do you see as the biggest change you think you’re going to see in the near term that’s really going to change the way we do business?
Yznaga: The AI piece is both exciting and a bit scary. As I hire people into my organization who are about half my age, they speak of AI with enthusiasm and I’m learning to embrace it. I recently attended a keynote presentation about generative AI, which was a very calming experience for me. Now, I feel ready for the conversation and prepared to work with our partners to navigate this new technology landscape.
As a smaller, family-owned bank, we don’t have all the tools that larger institutions might have. So, any help we can get in understanding and implementing AI is invaluable. I’m ready to take those next steps forward, knowing that we have trusted partners to guide us through this process.
The cautious yet optimistic approach to AI in banking reflects a broader trend across industries. From healthcare to education, organizations are grappling with how to harness the power of AI while addressing concerns about job displacement, data privacy and ethical considerations.
Q: How can leadership help motivate employees to evolve towards personalized digital experiences?
Yznaga: It ultimately starts at the top. A customer-first mindset and vision must permeate an organization’s cultural fabric. But empowering staff is equally crucial. Employees on the front lines need to have the right tools, training and authority to resolve issues on the spot when they arise.
Above all, banks must closely align performance metrics and incentives across employees, shareholders and customers. Leadership needs to consciously connect business value, customer satisfaction and employee engagement metrics together, even if short-term sacrifices are required. This unity of vision is imperative to seeing the journey through.
As financial institutions continue to navigate the digital transformation of lending processes, the key to success lies in balancing technological innovation with a deep understanding of customer needs and a commitment to employee engagement. By embracing change while maintaining a focus on personalized service, banks like Broadway Bank are well-positioned to thrive in the evolving landscape of digital lending.
For a longer version of this conversation, listen to “How a $5B Bank Modernized Digital Lending”, a podcast with Jim Marous, available here. This Q&A has been edited and condensed for clarity.
Justin Estes is an award-winning writer, strategist, and financial marketing expert with expertise in banking, investments, and fintech. His clients include the NYSE, Franklin Templeton, Credit Karma, Citi and, UBS, and his work has appeared in Forbes, Barrons and ThinkAdvisor as well as The Financial Brand.