How Native American Bank Modernized Credit Policies & Loan Processing to Increase Lending Impact

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The Challenge

Native American communities have historically faced significant barriers to accessing financial services due to:

• Unique Credit Situations – Many borrowers lacked traditional credit histories, requiring a tailored credit policy.

• Low-Income Challenges – High poverty rates made traditional underwriting models less effective.

• Distrust of Banks – Generational skepticism towards financial institutions made relationship-building critical.

• Manual Loan Processing Bottlenecks – The bank relied on outdated systems, slowing loan approvals and tracking.

 

The Solution

Under the leadership of Nathan Bell, Chief Credit Officer, Native American Bank undertook a two-part transformation:

1. Custom Credit Policy for Native American Lending

📜 Designed a new lending framework tailored to the unique financial realities of Native borrowers, factoring in alternative credit indicators and community-based trust models.
💡 Established risk-adjusted lending criteria that balanced financial sustainability with the bank’s mission to expand access to capital.
🤝 Implemented relationship-based credit evaluation, allowing loan officers to spend more time coaching clients on credit training and business literacy.

 

2. Loan Process Automation via Baker Hill Implementation

⚙ Automated loan tracking for covenants, ticklers, and defaults, eliminating manual errors and inefficiencies.
📈 Accelerated loan processing times, enabling the bank to process more loans with the same staff.
🧑‍🏫 Freed up loan officers' time, shifting their focus from paperwork to credit coaching and financial literacy training.

 

The Results

🚀 Loan processing time reduced by 50%, enabling the bank to deploy more capital to Native-owned businesses.
📊 30% increase in approved loans due to a more inclusive credit policy.
✅ Improved client relationships and trust, with loan officers engaging in meaningful coaching conversations rather than administrative tasks.

 

Case Study: Transforming Lending for Native American Communities

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Client: Native American Bank
Leader: Nathan Bell, Chief Credit Officer

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The Challenge

As Chief Credit Officer at Native American Bank, Nathan Bell led the effort to modernize lending while respecting the unique financial realities of Native borrowers. The institution faced several key challenges:

• Traditional credit models failed to account for borrowers with non-traditional financial backgrounds.

• Manual loan processing led to inefficiencies and slowed funding to communities in need.

• Distrust of banks meant that building strong, relationship-based lending was critical.

• Need for a gradual, measured approach to process improvement, ensuring new solutions were implemented in alignment with leadership's comfort level.

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The Solution

Nathan Bell and his team implemented a phased, strategic approach that prioritized quick wins and respected the bank’s mission-driven lending model:

1. Custom Credit Policy for Native American Lending

   • Developed a new, inclusive lending framework considering alternative credit indicators.

   • Designed risk-adjusted lending criteria to balance financial sustainability with mission alignment.

   • Shifted to relationship-based credit evaluation, enabling loan officers to spend more time educating borrowers rather than rejecting applications outright.

2. Loan Process Automation via Baker Hill Implementation

   • Automated loan tracking for covenants, ticklers, and defaults, reducing manual errors and increasing efficiency.

   • Enhanced borrower engagement, ensuring process improvements still prioritized personal interactions.

   • Phased rollout of digital tracking tools for document collection and compliance monitoring, improving loan processing without disrupting trusted human interactions.

The Results

• 50% reduction in loan processing time, enabling faster capital deployment.

• 30% increase in approved loans, particularly for previously underserved borrowers.

• Improved borrower satisfaction, with loan officers able to spend more time on financial literacy and business coaching.

• Successful modernization of credit operations, making processes more efficient while preserving the bank’s high-touch approach.

 

Aligning with Grow America's Approach

In discussions with Antonio Palumbo at Grow America, we understand that their leadership favors a measured, ‘crawl-walk-run’ approach to AI adoption and efficiency improvements. They emphasize:

• Starting with small, meaningful improvements before scaling up.

• Maintaining human relationships at the core of lending, rather than fully autom