Banks reclaim commercial lending through technology and strategic partnerships

Commercial lending is undergoing a fundamental transformation as banks navigate competition from private credit providers and fintech disruptors. Hector Pajes, SVP and Head of Global Commercial Lending at FIS, highlights how institutions are shifting toward "originate to distribute" models to manage risk and drive fee income while private credit markets expand toward a projected $3.5 trillion by 2029. To remain competitive, banks are increasingly adopting end-to-end unified lending solutions that integrate automated credit decisioning, AI-driven underwriting, and cloud-based infrastructure. These technologies streamline manual processes, such as credit memo creation and data management, allowing banks to improve operational efficiency and agility. By leveraging strategic partnerships and advanced data flows, banks are evolving from static portfolio management to dynamic growth engines, effectively balancing long-term stability with the need for rapid digital innovation in a complex regulatory environment.