The brilliant basics of modern lending

Caroline Béguin: In simple terms, what should a modern lender’s guiding vision be?

James Powell: All lenders are going through some form of transformation. Automotive finance is a great example, with the shift to electric vehicles, changing customer behavior, and new technologies. But the same principle applies across virtually every lending segment. Today, lenders are becoming technology businesses. Their expertise is lending, not building technology from scratch, which is why partnerships with companies like SBS are so important. Technology is now central to the business model. Of course, we cannot talk about technology without mentioning AI. There are still many cases where companies are investing without yet seeing the expected returns, but we know this wave will continue and become fundamental. Modern SaaS platforms also play a key role. They provide faster time to market, lower total cost of ownership, and allow lenders to focus on what matters most: serving customers through efficient and digital experiences.

Caroline Béguin: Why can focusing on a few priority segments be more effective than trying to serve every possible market?

James Powell: There is always a temptation to build software that does everything, everywhere. But that’s unrealistic. I often call it the Holy Grail: one platform covering every lending product, from front to back office, across every market. It’s called the Holy Grail for a reason—it’s impossible to achieve. Instead, we focus on areas where we have real strengths. Think mortgages in the UK, Tier 1 banks in France, automotive finance globally, the Middle East and Africa, and the US, which represents a major growth opportunity for us. Within those regions, we focus on specific segments such as SME lending, retail lending, and corporate lending. Over the next three to five years, success will come from maintaining that focus and building innovative solutions that create value for customers.

Caroline Béguin: When people say lending must create value for customers and for the business, what practical outcomes should lenders track today?

James Powell: Naturally, lenders want to grow their portfolios and serve customers better. They are looking for efficiency, cost reduction, and better customer experiences. But lending is particularly interesting because it combines two things. First, it is highly complex. Complexity creates challenges, but if managed properly, it also creates value. Second, lending is one of the core areas where financial institutions generate revenue. Technology helps lenders manage credit risk more effectively, improve efficiency, and accelerate time to market. Those are key outcomes.

Caroline Béguin: How do lenders know they are making real progress?

James Powell: Ultimately, progress comes down to two things: customer satisfaction and profitability. But lenders should also assess where they sit on the innovation spectrum. Some are pioneers, others are followers. Since lenders are becoming technology businesses, they need to evaluate how successfully they are adopting and leveraging technology. Revenue and customer satisfaction remain obvious measures, but technology maturity is also an important indicator.

Caroline Béguin: Across the lending lifecycle, from first inquiry to servicing and collections, where do you see the biggest friction points?

James Powell: Historically, our strength has been in back-office servicing. That’s where we have delivered the most value. But today, one of the biggest friction points is the intersection between front-office and back-office systems. Customers expect seamless experiences and fast loan origination. However, many lenders rely on different systems, sometimes from different vendors. If those systems are not well integrated, friction appears.We also see situations where the same customer experiences different journeys depending on the product they are using. If one customer receives three completely different experiences for three products, that creates unnecessary complexity and frustration. That’s one of the areas where we are helping customers improve.

Caroline Béguin: Can you give an example of simple steps that help reduce friction?

James Powell: Absolutely. Imagine a customer with three commercial portfolios, each with its own customer journey. That creates confusion and poor experiences. With a unified digital engagement platform, we can provide consistent onboarding across those different products. AML and KYC processes are standardized, and customers can move seamlessly between leasing, floor-plan financing, or specialist loans. Recognizing the differences between financial products while maintaining a single experience is incredibly valuable for customers.

Caroline Béguin: If a lender wants to move faster while staying resilient, what qualities should they look for in technology and business partners?

James Powell: First, partners need to understand the lending business itself. Technology alone is not enough. What companies like SBS bring is the combination of business expertise and technology expertise. We understand our customers’ businesses and can translate that understanding into practical solutions. Secondly, partners need the right technology capabilities. SaaS delivery models make it possible to implement solutions quickly, efficiently, and at a lower cost.

Caroline Béguin: What are the early steps that usually deliver quick results?

James Powell: Everything starts with strategy. Before making operational decisions, lenders need to think about their long-term vision, their positioning in the market, and what they want to achieve. Once that strategy is clear, they can make short-term decisions that support future growth. Quick wins only make sense if they align with the broader vision.

Caroline Béguin: And what about long-term actions?

James Powell: Once you have defined your strategy and made those first decisions, success comes from commitment.

Trust is fundamental. Throughout this conference, we have heard people talk about trusted partners and trusted advisors. That is exactly the position we want to occupy for our customers. We already support them with reliable, secure, and resilient systems. In many ways, we support their livelihood. One of my customers, Andrew Kilheaney from NatWest, recently described this as the “brilliant basics.” People often underestimate them because they are not the most exciting things to showcase. But delivering the basics consistently is what keeps customers safe and allows them to serve their own customers with confidence.

Caroline Béguin: Thank you for sharing your insights, James.

James Powell: Thank you, Caroline. Always a pleasure.