A more strategic approach to loan origination is helping credit unions be more nimble and efficient, allowing them to scale operations for growth without ramping up overhead and hiring. These credit unions increasingly choose business process outsourcing to bring expertise and open the door to options that the credit union could not pursue alone.
The growth initiative
A goal of aggressive growth drove Alliant Credit Union to look for a partner that offered more than a one-size-fits-all approach. The Chicago-based credit union with more than 875,000 members and $20 billion in assets, needed to scale quickly to serve a growing member base and further its goal of developing a national presence. It sought a collaborative process that would allow customization and focus on speed and accuracy. It also required a superior member service culture that would extend to their auto dealer partners.
Alliant Credit Union wanted to offer promotional loan terms in a new market without a big up-front investment. Business process outsourcing would allow them to de-risk their growth initiatives and give them the ability to try new promotional offerings with little up-front cost and short lead times. The power of collaboration and outsourcing gave them the agility to open new markets quickly and deliver high levels of service to both members and auto dealers.
Results and efficiencies
By implementing business process outsourcing, Alliant Credit Union has expanded its loan footprint, explained Michael Fasshauer, director of consumer loan origination at Alliant Credit Union. "The proof is that we're doing many, many more loans, originations are increasing pretty much every month, and we're serving more members in more states," Fasshauer said.
Efficiencies from business process outsourcing include the ability to underwrite loans well outside the normal business hours of credit union employees. Quick loan decisions mean happy members even late in the evening, on weekends and holidays, and at odd times for members in distant time zones. It also involves managing volume and capacity. Alliant Credit Union found that outsourcing can handle a spike in volume from a loan promotion without compromising turn-around and staff morale. It can also cover extended absences and other short-term staffing challenges that put stress on operations with limited bench strength.
Support and customization
Business process outsourcing has also been a source of loan processing support in both full-service and a-la-carte arrangements. A credit union can outsource the entire loan origination process and focus its energies on risk management and quality assurance. Some credit unions prefer to retain auto dealer communication and let others do the back-office paper pushing. Others outsource in different ways entirely, relying on support for things like letters and file organization. A full-service call center is another benefit that has appeal to many credit unions, whether used incrementally or not.
Credit unions seeking speed, accuracy, and scale in their lending operations are finding great success by discovering a business partner that can bring expertise and a collaborative approach to lending solutions that support initiatives they could not realistically contemplate on their own.
Origence Lending Services provides loan origination services to credit unions seeking business process outsourcing. They emphasize a customized, interactive approach and collaboration that recognizes every credit union is different. They believe that relying upon what works somewhere else isn't a shortcut and could be a wrong turn. Hannah Johnson, SVP and COO at Origence Lending Services said, “One of the things we're most proud of is when credit unions have unique needs, and we build new services to accommodate those needs.”
