It should come as no surprise in the age of rapidly changing and emerging technologies, where cars can drive themselves and food delivery is available at our fingertips, that a majority of our banking services take place on our mobile devices.

According to the 2016 “Consumers and Mobile Financial Services Report,” nearly 43 percent of mobile phone owners actively use banking apps as their primary source of daily money management.

Though depositing checks, paying bills, and transferring funds can be completed without the help of a banker, many banking services still require personal interaction.

Here are the key reasons why commercial lending never will be a fully automated service, plus tips to consider when choosing a commercial lender.

Mobile apps and online banking services are designed to be a frictionless experience—to work quickly and efficiently for users. However, when it comes to commercial lending, there is no one-size-fits-all or even a one-size-fits-many option. Business needs and contexts differ in every market, so no single equation can be tailored to meet every circumstance.

For instance, the start of the commercial loan process in a traditional bank setting requires deep background, such as documentation and financial histories. It also requests more than banking-standard requirements like tax returns, liabilities, and assets.

For example, lenders often will ask for a detailed business plan. Where do you see your company heading in three, five, and seven years? When there are woes in the business cycle, how will you handle them?

This process can feel somewhat lengthy and at times, daunting. This is also what makes traditional commercial lending appealing. It allows lenders to tailor a loan to an individual company’s needs.

This is not to say there aren’t already companies offering commercial loans with the swipe of a finger or click of the mouse. However, those same companies require little to no documentation to prove credit integrity. Furthermore, they still require human interaction.

Simply put, you cannot replace the value of face-to-face conversation.

The biggest factor to consider in any loan is character.

In the context of commercial lending, character is just as important for the lender as it is for the customer.

When applying for a commercial loan, I suggest you challenge yourself to answer the question, “Did I make the right decision in choosing this lender?”

The bottom line is you want to have full confidence lenders are familiar with your financial health. Likewise, lenders want to know your business is a great addition to their portfolio.

But how does one identify what good character is without a conversation? 

To answer that, I have another challenge for you to consider when going through this process. Play out this scenario in your head: a downturn in the market comes, and your company is seeing the brunt of it every day. You know you need help, but it’s difficult now more than ever to open a line of credit. How will a one-stop shop deliver what you need when your application no longer meets the standards of its algorithm?

Now, play out the scenario with an in-person commercial lender. You present them with a well thought-out plan on how to get your business back on track. Do you think they will be more inclined to support you?

Finances are truly an intimate matter and should, as often as possible, be treated as such.

Easy access to credit does not translate to valuable credit.

We’re at this point in the business cycle where access to credit is overabundant, and the underwriting standards are starting to diminish. According to the National Consumer Law Center, the data that underwriters use for automated loans is often incomplete or flat out wrong. So, while automated loan services are making the process faster and easier than ever, those loans are also risky. 

Given the abundant amount of lending options available, it’s easy to understand why a borrower might seek out the most instantaneous lending option. In our rapidly developed digital world, it’s important to remember that not all human functions can be replaced by technology, including commercial lending. 

Underwriting in a traditional bank setting combines years of experience supported by metrics. It’s a combination of objective and programmed answers to provide borrowers with a tailored solution for both short-term and long-term options. Although computer programs can be updated and adjusted, they will simply never have the objective judgement and innate integrity a seasoned banker holds. 

Terry Turnbow is the Spokane-based senior vice president and commercial banking team lead for Columbia Bank.