Consumers Credit Union, headquartered in Kalamazoo, Michigan, exemplifies how leveraging advanced technology can significantly transform lending operations. Consumers Credit Union is one of Michigan's top-performing credit unions, a $2.4 billion financial institution serving nearly 146,000 members. With a strong focus on community service and innovative growth, the credit union has established itself as an indirect lending leader for more than two decades.
However, as digital transformation swept through the financial industry, Consumers Credit Union realized it needed to modernize its process to meet evolving member expectations and dealer requirements. Manual document handling in their indirect lending program became a key challenge, limiting their ability to scale and impacting efficiency. Recognizing the need to adapt while preserving its commitment to quality service, Consumers Credit Union set out to transform its lending practices.
The challenge: Navigating manual processes
Consumers Credit Union’s indirect lending process was limited by time-consuming manual workflows that affected their ability to scale operations and created significant operational challenges. These inefficiencies limited growth and created bottlenecks, including:
- Time-consuming document review: Staff spent hours manually reviewing document packages, often encountering disorganized or improperly formatted pages. This process, commonly known as “stare and compare,” slowed down lending operations.
- Inefficient data transfer: Employees frequently transcribed information from documents to systems manually, sometimes resorting to handwritten notes when navigating between screens.
- Training challenges: New team members needed extensive training to master the intricate document review procedures, which extended onboarding times.
- Funding delays: Document discrepancies often led to delays, requiring staff to contact dealers and request corrections, which interrupted the workflow and hindered timely funding.
These challenges strained resources and threatened the credit union’s ability to sustain its indirect lending growth, particularly as digital transformation accelerated the industry.
The solution: Automating document processing
To address these issues, Consumers Credit Union partnered with Origence to implement Document Processing Automation (DPA). This AI-driven solution revolutionized document handling by automatically sorting, naming, and verifying incoming documents. It recognized more than 100 document types specific to indirect auto lending and extracted key information regardless of format.
A critical feature of the system was its ability to generate a comprehensive loan summary, reducing the need for manual review. This allowed staff to focus on more strategic tasks instead of repetitive data verification. Additionally, automated notifications alerted dealers of incomplete documentation, enabling issues to be resolved before they delayed processing.
According to Tim Kosak, vice president of lending at Consumers Credit Union, the system marked a significant shift: “We’ve created a process where funders no longer need to open and review every single document. The system evaluates document completeness, allowing our staff to focus on higher-value activities.”
The results: Measurable operational improvements
By implementing DPA, Consumers Credit Union achieved substantial improvements in both efficiency and cost-effectiveness:
- Enhanced processing speed: The average number of funded deals per funder increased from 10 to more than 20 per day. One funder even processed 40 deals in a single day, demonstrating the system’s capacity for high-volume processing.
- Time savings: Automated document stacking alone cuts manual processing time by 30%, significantly reducing the burden on staff.
- Faster onboarding: The training period for new staff was reduced by 70%, allowing team members to reach productivity more quickly.
- Cost reductions: The streamlined process reduced the staffing requirement from 6.4 to 2.8 full-time equivalents for the same loan volume, saving approximately $210,000 annually.
- Improved accuracy: The automated system consistently identified discrepancies more effectively than manual methods, enhancing quality control.
- Reduced funding delays: Funding delays decreased by 13% as automated notifications prompted dealers to resolve issues outside regular business hours.
Driving membership growth
Consumers Credit Union’s indirect lending program is not just a revenue driver but a key element of member acquisition. By enhancing operational efficiency, Consumers Credit Union positioned itself to enter new markets more rapidly, even without physical branches. The credit union anticipates adding 21,000 new members this year, with half expected from indirect lending.
The improved process also strengthened dealer relationships by enabling faster funding and consistent communication, fostering trust and partnership. This proactive approach allows Consumers Credit Union to maintain its competitive edge as an indirect lending leader.
Key takeaways for credit unions
Kosak offers practical advice for credit unions considering similar technology: “Get in early and get in fast. It’s about committing to automation and understanding the integration process. Those who hesitate may find themselves falling behind competitors.”
Partnering with industry leaders like Origence allowed Consumers Credit Union to automate and innovate continuously. As AI-driven solutions become increasingly essential, early adoption and commitment to process improvement will be key factors in sustaining growth and maintaining member satisfaction.
By embracing AI in their lending operations, Consumers Credit Union streamlined internal processes and reinforced its commitment to providing reliable, efficient service to members and partners alike.
