4 benefits of choosing a CUSO-built loan origination software

While there’s no shortage of loan origination software (LOS) on the market, there are clear advantages to choosing the right one, especially for a credit union. In some ways, choosing the best LOS for your business is similar to choosing a vehicle: You want to make sure you have all the features you need so you don’t have to add features later to create the experience you desire.  In order to navigate the unique terrain of credit union loan origination, you need the right “vehicle”—one that takes into account what makes your journey different from that of other institutions. For credit unions, a platform that can be built with you by a CUSO (credit union service organization) with distinct features that can help you reach the destination of more closed loans while giving everyone in the car a smooth ride along the way. Here are four reasons why.

1. A CUSO platform is powered by a deep understanding of the credit union business model

The business models of credit unions and banks are very different. While both entities loan money, the corporate structures have little-to-nothing in common. Also, the customer service values of credit unions significantly differentiate their day-to-day operations from those of banks. These essential differences have a considerable effect on the loaning process. A CUSO-built loan origination platform is built on an understanding of these distinctions.

A CUSO-designed LOS takes into consideration the specific needs of both the credit union and its members. With a CUSO-built LOS, you can get software that is specifically designed to promote growth in both your credit union’s lending and membership. This is only possible thanks to an in-depth understanding of how credit unions work, how they close loans, and how they attract new members. Thus, it’s important to look for a CUSO that will partner with you and be continually developing the system to evolve with your needs.

2. You save money because a CUSO-built platform has fewer fees

The fees you pay with other loan origination platforms can easily chip away at your profits. When you run a credit union – whether it’s large or small – you don’t want to be nickel-n-dimed to a lower profit margin with a one-size fits all LOS.

It’s also important to keep in mind the obligation to do right by the members of the credit union. They have each made a personal investment of money—and trust—in the credit union. Choosing a CUSO-built LOS with lower fees helps ensure your members’ trust is respected. At the same time, you save money that directly benefits everyone associated with the credit union.

3. You get dedicated personalized guidance through the setup process

Anytime you on-ramp a new product or service, there’s a learning curve. With a CUSO-built LOS, you can get dedicated, personalized guidance as you set up the platform. Because a CUSO understands the ins and outs of how a credit union works, they can better address any hang-ups or issues during setup, paving the way for a smoother transition.

Also, with one-on-one guidance, you can take your time, making sure you understand each facet of the platform and how it makes your job easier. This benefits both people who are very comfortable with loan origination software and electronic devices and those who may be newer to the experience. Regardless of how computer- or device-savvy a user is, with a CUSO-built platform, they can become an expert with less training, less clicks and dynamic fields that change to the product type to make gathering loan information simple and easy. 

4. You can get a highly customizable LOS crafted for your business

With a CUSO-built LOS, you get a system suited to the specific needs of your members. Not only are credit unions vastly different from banks, but each credit union is different from each other. Sometimes the size of the credit union results in a unique business model or loan origination process. However, even if two credit unions have similar membership numbers, the loan origination processes for each may be unique. A CUSO-built platform can be custom-designed to meet these needs.

For example, the traits of delinquent borrowers may be different in the area your credit union serves than they are someplace else. With a CUSO built platform, you can set up customized decision rules that help identify which members are more likely to be delinquent. This way you can better serve your members and meet their needs. Not only does this improve the experience for members, but lending to the right members can bolster your revenue stream.

A CUSO-built loan origination solution saves you money, benefits your members, and stimulates the growth of your business. In addition, an LOS that’s custom-designed for your business model, and that comes with detailed, thoughtful training, provides your staff – and members – with a smooth, comfortable journey down the road to a successful loan.