nCino Deploying Banking Advisor, a Generative AI Solution to Drive New Efficiencies in Financial Institutions
nCino has launched its new artificial intelligence (AI) solution, Banking Advisor, which aims to optimize decision-making for financial institutions. Powered by nCino IQ (nIQ), this tool offers real-time intelligence, enhances productivity, and simplifies complex processes for banks of all asset sizes and geographies.
Key features include interactive document handling, intelligent automation for credit memos, data-driven insights, advanced document processing, and responsive query solutions. The tool has been tested in a closed beta program and received positive feedback for improving efficiency and proactive portfolio management.
Participants like First Horizon Bank and Northern Bank are early adopters, praising its transformative capabilities. Banking Advisor is designed to assist multiple roles within financial institutions, from automating routine tasks to compliance tracking and client relationship management.
- Launch of Banking Advisor leverages AI for real-time intelligence and decision-making.
- Enhanced productivity and efficiency through employee time savings.
- Proactive portfolio management and streamlined routine tasks.
- Improved compliance tracking with regulatory requirements.
- Positive feedback from beta program participants, including First Horizon Bank and Northern Bank.
- Embedded large language models for real-time information awareness and data-driven insights.
- Automated writing of deal and credit memo narratives to reduce human error.
- Advanced document processing and responsive query capabilities.
- Flexible and unified platform enabling intelligent automation and personalization.
- Potential high implementation costs for smaller financial institutions.
- Dependency on the quality and accuracy of data provided by individual financial institutions.
- Initial adoption phase might require significant training and adjustment period for employees.
- Technical issues or bugs during initial rollout could affect user experience and productivity.
Insights
The deployment of nCino's Banking Advisor, a Generative AI tool, indicates a significant technological advancement in the financial services sector. Leveraging large language models, this tool allows for real-time information awareness and data-driven decisions. Its integration can substantially streamline routine banking tasks, reducing manual effort and mitigating human errors. This innovative approach enables financial institutions to enhance portfolio management, regulatory compliance and customer engagement. The tool's ability to interact with documents and provide intelligent automation can clearly drive productivity, thus positioning nCino as a forward-thinking player in the banking software market.
However, it's essential to monitor the adoption rate and integration challenges that banks might face, especially smaller institutions that may lack the technological infrastructure. The success of this tool hinges on its seamless integration into existing systems and the willingness of banks to invest in such technology. Investors should look for further announcements regarding user adoption rates and any testimonials from early adopters that could provide deeper insights into the tool's effectiveness.
nCino’s new AI solution, Banking Advisor, is poised to transform how financial institutions manage their operations. By improving efficiency and productivity, the tool can potentially lower operational costs and increase profitability for banks. These savings and enhancements can translate to higher returns on investment for shareholders in the long term. It’s important to consider the financial impact derived from the tool’s ability to enhance decision-making and reduce error rates. These elements can also improve the bank's risk management profile.
For investors, understanding the financial implications is key. The tool’s potential to generate cost savings and enhance operational efficiencies should positively impact nCino’s financial performance. Investors should watch for revenue growth stemming from increased adoption of this tool. It's also advisable to keep an eye on any increase in R&D expenses, which might impact short-term profitability but could be justified by long-term gains.
The introduction of Banking Advisor by nCino marks a notable development in the cloud banking market. This product positions nCino to capture a larger market share by offering a solution that addresses key challenges faced by financial institutions. The tool's ability to provide real-time insights and automate complex processes is particularly relevant in today’s highly competitive and regulatory-driven banking environment. It offers a differentiated value proposition that can significantly enhance customer satisfaction and retention.
From a market penetration perspective, nCino's existing partnerships and early feedback from the Product Design Program suggest its strong market readiness. The company’s strategy to involve a diverse range of institutions during the beta phase indicates a well-thought-out approach to harnessing broad-based adoption. Investors should look for continued feedback and market reception as key indicators of this product's potential success. Additionally, keeping an eye on competitor responses can provide insights into nCino's positioning in the market.
Company's Gen AI tool, powered by nCino IQ (nIQ), delivers real-time intelligence and optimizes decision-making with data-driven insights for financial institutions across asset sizes and geographies
Participants of Banking Advisor’s closed beta testing Product Design Program finding efficiency gains through employee time savings and proactive portfolio management
WILMINGTON, N.C., June 17, 2024 (GLOBE NEWSWIRE) -- nCino, Inc. (NASDAQ: NCNO), a pioneer in cloud banking for the global financial services industry, today made generally available its new artificial intelligence (AI) solution, Banking Advisor. nCino’s Banking Advisor is a banker-focused, conversational co-pilot tool that provides financial institutions a modern approach to proactive portfolio management, helps streamline routine tasks to save significant time and effort, and takes the guesswork out of complex processes to help financial institutions track and comply with regulatory requirements.
The intelligence and automation embedded in Banking Advisor allow multiple roles at an institution to increase productivity and spend time on higher-value activities like building and maintaining client relationships. The solution is powered by nCino IQ (nIQ), which was introduced in 2018 and leverages AI, machine learning and analytics to deliver intelligent automation, data-driven insights and industry benchmarks that create an enhanced user experience and deliver greater value to customers utilizing the nCino Cloud Banking Platform.
nCino’s Banking Advisor leverages large language models to drive real-time information awareness, provide suggestions for next actions, and offer insightful interactions with information, documents and objects to unlock new value. The co-pilot is thoughtfully designed with a set of unique skills to meet the modern demands of relationship banking and represents an innovative leap in Gen AI-assisted financial service capabilities.
The initial version of Banking Advisor includes the following skills, with more being developed:
- Interactive Documents: Enabling bankers to “chat” with any PDF document such as credit policies, training materials, market data, how-to guides, etc.
- Intelligent Automation: Automated writing of new deal and credit memo narratives, evolving a previously manual task and reducing human error using the narrative skill embedded in the tool
- Data-Driven Insights: Offering of conversational industry benchmarks and insights via a chat interface, helping bankers ask questions about the data to determine best next steps for the business
- Advanced Processing: Streamlined document upload process by scanning the data and categorizing information to associate the scanned data with the appropriate relationship
- Query Response: Answering specific banker questions based on uploaded documentation, such as:
- “Can I originate a loan with a loan-to-value (LTV) ratio of
80% for a commercial property in California, given our current credit policy?”; - “What are the documentation requirements for a construction loan with an LTV ratio above
80% ?”; and - “How do I initiate a loan approval request for a large commercial loan, and what are the required approval roles?”
- “Can I originate a loan with a loan-to-value (LTV) ratio of
The Customer Experience
Banking Advisor operates exclusively on the data provided by the individual financial institution, ensuring a tailored and precise user experience. Participants of the Product Design Program, nCino’s closed beta program that represents various geographies and asset sizes, have pioneered Banking Advisor’s functionality, confirming optimized processes and providing valuable first-hand perspectives.
- "We’re proud to be participating in nCino's Product Design Program for Banking Advisor, investigating the functionality and providing critical feedback as we explore the potential of incorporating Gen AI into our operations. We consider ourselves a forward-thinking institution that continuously looks to provide exceptional experiences to our clients and bankers, and the partners we choose to help us innovate responsibly with joint expertise. We’re excited about the capabilities nCino is bringing to market and the opportunities we have to partner into the future.” – Tyler Craft, SVP and Director of Transformation, Fintech & Emerging Tech, First Horizon Bank
- “We chose nCino as our cloud banking partner in 2016 because of their commitment to efficient transformation and their relentless pursuit of cutting-edge technology. By using Banking Advisor, banks like Northern Bank can now shift towards optimization for efficient workflows and use the Gen AI tool to make data work for them versus working for the data. nCino's flexible technologies and unified platform enable us to build the intelligent automation into our business and deliver the personalization our customers expect. It was an easy decision to become an early adopter and pioneer this innovative co-pilot.” – Christopher Hart, Chief Data Officer, Northern Bank
“Since nCino’s inception, we’ve been committed to transforming the financial services industry through innovation, reputation and speed,” said Donald Permezel, General Manager of Product at nCino. “As financial institutions recognize the tremendous potential of AI to reshape their operations, there is a concerted effort to incorporate these technologies to achieve differentiation in the marketplace and enhance user experiences. We’re pleased to offer innovative solutions that not only make an immediate impact for our customers, but that also have the ability to evolve and become more insightful as adoption increases.”
About nCino
nCino (NASDAQ: NCNO) is the worldwide leader in cloud banking. Through its single software-as-a-service (SaaS) platform, nCino helps financial institutions serving corporate and commercial, small business, consumer, and mortgage customers modernize and more effectively onboard clients, make loans, manage the loan lifecycle, and open accounts. Transforming how financial institutions operate through innovation, reputation and speed, nCino is partnered with more than 1,800 financial services providers globally. For more information, visit www.ncino.com.
About First Horizon Bank
First Horizon Corp. (NYSE: FHN), with
About Northern Bank
Northern Bank is a full-service bank dedicated to providing practical, common sense financial solutions to help our customers’ lives and businesses grow. From deposit products to loans to payment and collections services, we work hands on with our entrepreneurial customers, both locally and across the country, to provide the financial support they need to realize their personal and business goals. Founded in 1960, Northern Bank has 13 locations serving communities throughout Middlesex County. Northern Bank is a Member of the FDIC, and an Equal Housing Lender.
Media Contacts
Natalia Moose
press@ncino.com
Safe Harbor Statement
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