Credit unions can ‘up their game’ with the right digital lending partner

Today’s consumers want the convenience of applying for smaller dollar loans online and getting funds quickly. Despite some recent bad publicity, marketplace lenders such as LendingClub and Prosper have succeeded in filling this need—doubling outstanding portfolio balances every year since 2000—despite their often-high interest rates (some as high as 29%).

The success of these marketplace lenders demonstrates to credit unions the opportunity to ‘up their game’ and become a part of this digital revolution. But how can credit unions that lack the resources to develop their own technology compete with marketplace lenders?

The key is to automate the lending process and reduce costs with the help of a digital lending partner.

Different from marketplace lenders, a digital lending partner offers a turn-key application that automates the entire loan process, from underwriting to set up to delivery of these smaller dollar ($1,000-$20,000) consumer loans. Your members can apply for the digital loans from a computer or mobile device and receive funds within a few days or less. They get the rate and terms they prefer (yours), but with the speed and simplicity of marketplace lenders.

What’s more, your credit union can keep the loans on your balance sheet.

These end-to-end systems create never-before-seen efficiencies by eliminating paper work and loan officer direct involvement. Your credit union is able to profitably fund and manage smaller dollar, unsecured loans at a fraction of the cost of manual and paper processes, often as low as $500 each.

What kind of Digital Lending Partner can help your credit union ‘up your game’ quickly? One that has proven success in digital lending, and:

• Allows your credit union to use your underwriting controls and risk-rating standards
• Keeps the loans on your balance sheet as earning assets
• Accepts online applications by computer or mobile phone
• Provides approvals in an instant, funds in just days
• Monitors loans, deposit activity and credit information
• Handles loan renewals
• Provides proven safety in the cloud

With the right digital lending partner, it’s ‘Game On!’ for your credit union that can now compete against even the largest loan providers.