Blueprint for Renovation: What it Takes to Modernize Commercial Lending

Blueprint for Renovation: What it Takes to Modernize Commercial Lending 

In over five decades of delivering transformative commercial lending solutions to the nation’s leading financial institutions, one truth has remained constant: modernization is not optional—it’s essential. At its core, implementing a new commercial lending platform is not just a technology upgrade. It’s a comprehensive reinvention of how a bank operates, competes, and grows. It’s a strategic shift that touches every corner of the organization, from the front lines to the boardroom. 

And like any meaningful transformation, it takes time — just like renovating a home. To transform and modernize your space so it fits not only your current but future need takes time, planning, and the right contractor with the right tools. 

AFS has had the privilege of guiding many institutions through their commercial lending transformation. What follows are the principles and practices that we’ve learned have consistently separated successful transformations from the rest. 

Think Strategy, Not Just Systems 

The scope of a commercial lending platform implementation is inherently vast. Most successful institutions don’t view it as a challenge but as an opportunity to go beyond a system replacement and take their bank a strategic leap forward. 

Our clients come to us with the need to modernize. That need often catalyzes a bold, enterprise-wide transformation. The goal isn’t to replicate legacy processes on a new platform, it’s to reimagine them for a digital-first future. That means replacing fragmented, outdated systems with a unified, scalable solution that supports the full spectrum of commercial lending—from small business loans to complex syndicated deals. 

This is not about technology for technology’s sake. It’s about enabling long-term growth, agility, and innovation. 

Lessons from the Front Lines 

With more than 100 platform conversions and over 20 major upgrades under our belt, we’ve seen what works—and what doesn’t. We’ve also learned that the best insights often come from those closest to the work: the executives driving the vision and the teams executing it. 

Here are the most valuable lessons we’ve learned: 

• Pace the project. Large-scale transformation is a multi-faceted project. Set realistic milestones and celebrate progress along the way. 

• Start with data. Data migration and reporting are often the most complex and time-consuming aspects of the project. Begin early, plan thoroughly, and don’t underestimate the effort required. 

• Stay focused. Transformation reveals inefficiencies. Don’t get distracted by every broken process. Document them for later, but it is important to keep your eyes on the strategic objectives. 

• Set up a strong communication infrastructure early. As your project advances from planning to implementation, having the groundwork in place for scalable, structured communication will ensure everyone has the information they need. Clear, consistent communication from the start helps everyone stay on the same page. 

The Role of Strategic Partnerships 

No institution can—or should—go it alone. Just like a remodeling project needs a good contractor, your commercial loan transformation needs the skills of an experienced partner in the form of System Integrators and your platform vendor. The scale and complexity of these initiatives demand collaboration. Strategic partners can provide critical support, from managing the central PMO to accelerating technical workstreams and filling functional gaps in areas like testing, documentation, and training. 

The key is self-awareness. Know your organization’s strengths and limitations. Then, choose partners who complement your capabilities and help you move faster, smarter, and with greater confidence. 

Operational Readiness Begins with People 

Technology is only part of the equation. True transformation happens when people are empowered to succeed in the new environment. 

That starts with alignment. Before implementation begins, ensure all key stakeholders are aligned on the strategy and the target operating model. During and after implementation, training becomes the linchpin of success. 

Our recommended training approach includes: 

• Process-based training to guide teams through new workflows. 
• Hands-on systems training to build comfort and competence. 
• Role-based learning to ensure relevance and depth. 
• Contextual education to reinforce foundational knowledge. 
• Ongoing courseware to support onboarding and continuous learning. 

This layered approach ensures that employees aren’t just trained—they’re prepared to thrive. 

Navigating the Human Side of Change 

Even with the best planning, two challenges consistently emerge: 

1. Unwritten knowledge. Much of what makes legacy systems work lives in the minds of long-tenured employees. Capture that knowledge early. 
2. Change resistance. Even the most supportive teams can struggle with change. That’s why early engagement is critical. Secure buy-in from all affected departments before a vendor is selected. When people feel heard and involved, they’re more likely to stay committed. 

Transparency, communication, and internal champions—those who adapt quickly and help others do the same—are your best tools for overcoming resistance. 

Laying the Foundation for the Future 

If the foundation is faulty, it doesn’t matter how good-looking the house is in the end, it will eventually collapse. The same is true with your core system transformation. Ultimately, this journey is about more than implementing a new platform and innovative technology. It’s about building a foundation for what’s next. 

Use this opportunity to: 

• Redesign processes for efficiency and scalability. 
• Clean and structure data for better decision-making. 
• Align roles and skills with a digital-first strategy. 
• Foster a culture of continuous improvement and innovation.

Final Thoughts: Lead with Vision, Deliver with Purpose 

Transformation is never easy. But it is achievable—and it is worth it. 

As an industry leader in transforming commercial lending operations, we bring our clients into the modern world of commercial lending by providing the platform they need to realize their goals while embracing the complexity of change. When we do that, we don’t just enable modernize operations—we redefine what’s possible. 

As anyone that has remodeled a room of their house can tell you, transformation projects of this scope take careful planning, consideration, and patience as you go through the stages of modernization. But with the right strategy, the right partners, the right vision, and the right mindset, the result leads to a stronger, smarter, and more future-ready institution.