Meeting member needs through online loan origination

Loan origination is the new battleground. The loan process – from member application, to lender processing, to distribution and administration – used to take weeks to complete. Customers now expect approval news within days, if not hours. And with easy online access to multiple loan sources, borrowers are likely to go with the best rate provided by the lender who responds the fastest.

By automating the various loan origination processes, a credit union can significantly improve its level of service and sales performance, as well as build a competitive advantage in the marketplace.

The benefits of a mobile Loan Origination System (LOS) experience include:

• 24/7/365 access on multiple devices
• Real-time account opening with a full eligibility wizard, member documentation uploads and online signatures
• Rapid automated decisions that support specific credit union strategies, from the simplest to the most complex
• Streamlined origination, automated underwriting and funds disbursement with flexible third-party integrations
• Seamless integration that supports specific current processes today but with enough flexibility and access to easily accommodate and manage changes and upgrades down the road
• Support for a credit union’s brand with intuitive design applications that customize the solution to complement and enhance its mobile and full websites

An optimal LOS features a powerful, configurable workflow engine that uses a credit union’s existing rules, rates and lending criteria and that supports loan application processing activity across all consumer-lending channels. The system’s technology should support consumer loan and account-opening applications that work seamlessly with the credit union’s current technology and processes. This not only simplifies integration but also minimizes staff training and reduces or eliminates the need for new loan origination steps. An LOS also allows credit union staff to manage more new applications and current loans by using automated workflows that require fewer resources, take less time, and comply with all internal and regulative standards. From tracking documents to integrating a paper-free processing and storage system, an LOS can build in new, cost-cutting efficiencies aimed at the bottom line.

Existing and prospective members will appreciate the responsiveness of a robust, customizable decision engine that provides access to lending information, product options, and a smooth, intuitive application process available over multiple devices—around the clock, 365 days a year.

Credit unions considering a change or upgrade to their LOSs should consider partnering with a CUSO (Credit Union Service Organization). CUSOs can help credit unions look at key issues, including software integration, mobile functionality, operations, member experience and goals. A good CUSO will focus not only on helping a credit union embrace technological advances but also on supporting member services. In its quest to always improve the member experience, PSCU partnered with CU Direct to offer Lending 360. Integration between account origination and Lending 360’s loan origination functions enables credit unions to smoothly process loan applications, which supports new member growth, marketing and cross-selling across all digital channels.

It is important to keep in mind that online lending should supplement a credit union’s lending program and philosophy, not replace it. By combining an LOS with a productive and compassionate customer support staff, credit unions can build on their history of service with a wide range of new automated capabilities, both customer-facing and back-end, to compete in today’s uber-competitive lending arena.

Credit unions have built a reputation for emphasizing responsive services tailored to the needs of established members while anticipating those of prospects. Fortunately, the acceptance of automated and self-guided services is growing, allowing members to experience and even seek new efficiencies, smooth banking experiences and increased convenience. More and more, the friendly face at a bank is evolving into a user-friendly app that is ready for consumers for whatever they need, whenever they need it. However, this shift to mobile does not have to be a negative. Instead, it should be viewed as an opportunity for credit unions to take advantage of by leveraging the power of the human touch.

Co-Authored By: Rachel Fogle works with PSCU’s Lending and Account Opening Solutions, as well as on strategic product initiatives.