Authored by Neil Hartman, Founder & CEO of Lamina

Modernizing The Syndicated Lending Process

Banks and financial institutions have been modernizing their organizations for years – upgrading security systems, strengthening connectivity, and integrating data across business lines. These efforts reflect an industry-wide push toward greater efficiency, transparency and agility.

Yet one area remains stubbornly behind: syndicated lending. Despite being a cornerstone of global capital markets - measured in the trillions according to the Bank for International Settlements – the process still runs on outdated foundations. Manual procedures, fragmented systems and a patchwork of vendors slow deals and erode efficiency.

Modernizing syndicated lending isn’t just a “nice to have”. It’s a necessary extension of the transformation already underway across banks. The same technologies and streamlined workflows being applied to core operations should be brought to loan syndication to remove operational burdens and unlock the potential to be a strategic growth driver.

In today’s environment, for financial institutions, agility, collaboration, and precision aren’t strategic extras—they’re survival requirements. As Finextra observed “[...] with volumes and distribution activity increasing fast, and banks tightening their belts, loan syndication operations are now rapidly approaching the limit of their resources.” Left unchecked, this creates systemic risk.

The Operational Crisis of Legacy Infrastructure

Legacy infrastructure is increasingly incompatible with the demands of modern capital markets. Syndicated lending operations in particular face three persistent challenges:

· Disjointed processes that delay execution and increase risk of error

· Manual reconciliation that drains resources and stifles scalability

· Outdated communication that slows multi-party deal coordination

While these methods may have sufficed in an era of lower volumes, today they create bottlenecks that limit banks’ ability to compete in syndicated loan deals. Rising regulatory requirements, higher capital costs and borrower expectations for transparency only compound the strain.

As PaymentsJournal highlights, banks that remain tethered to outdated systems for their syndication processes risk ceding deals to non-bank lenders offering faster, more flexible solutions.

The Strategic Imperative for Syndicated Evolution

In this market, standing still is not neutral—it’s risky. Banks that fail to modernize their syndication processes face mounting pressures:

· Compressed margins from higher origination, servicing, and compliance costs

· Operational strain as volumes grow without scalable systems

· Eroded borrower loyalty as clients seek digital-first experiences

Research from the Bank for International Settlements shows how labor-intensive loan servicing introduces downstream fragility. Similarly, Siepe reports underscore how reconciled, accurate data is essential for portfolio visibility and exposure management. Without upgrading syndication lending operations, institutions risk being structurally disadvantaged even as other parts of their business transform.

The Transformation Opportunity: Intelligent Syndication Through End-to-End Change

Institutions that evolve beyond digitization alone are already realizing measurable outcomes:

· Efficiency - Automated workflows accelerate execution and reduce errors (FIS report)

· Margins - API-driven data ingestion reduces reconciliation costs

· Exposure visibility - Standardized data improves portfolio insights and real-time risk management (Siepe)

· Growth- Real-time collaboration tools enable participation in more deals without expanding headcount

Looking ahead, AI will play a supporting role, not as the main story but an enabler. Early use cases like AI driven notice ingestion (reducing manual work and operational risk) and machine learning applied to loan data (improving analytics and forecasting) show how today’s infrastructure investments pave the way for tomorrow’s efficiencies.

Leading the Industry Through Proactive Innovation

The fastest-growing lenders are not necessarily the largest—they are the most adaptive. When it comes to syndication, these leaders are:

· Forming strategic partnerships 

· Building scalable, connected infrastructure

· Prioritizing adaptability and continuous learning over static models

As Brett Mastalli emphasized in The Financial Brand, “to keep with the pace of innovation, banks must adopt skills-based models that prioritize adaptability and continuous learning. Upskilling isn’t optional. It’s how institutions stay responsive to market shifts and build lasting capabilities.” Applied to syndication, this means building teams and systems that can adapt as volumes, structures, and regulations evolve.

The future will not be defined by those who digitize legacy systems—it will belong to those who reimagine loan syndication entirely.

A Call to Action for Syndicated Lending

The cost of inaction is rising. Institutions that delay modernization of their syndication processes will face higher operating expenses, diminished client trust, and shrinking market relevance. To remain competitive, lenders must move beyond incremental fixes and commit to a new operating model for syndication: one that is built on scalable technology, streamlined workflows, and seamless collaboration.

The winners of tomorrow will be those who don’t just adapt to change, but who drive it — transforming syndicated lending from a manual burden into a strategic growth engine.

About Lamina

Lamina, a West Monroe company, is redefining how financial institutions manage syndication and participation loans. Backed by more than 20 years of industry expertise, Lamina simplifies the inherent complexity of multi-lender transactions by streamlining workflows, automating data exchange, and enabling seamless collaboration.