Technological integrations: Opening a world of possibilities to CUs
Nearly 60 percent of consumers worry about not being able to make their loan payments due to unexpected expenses. 1 This has real ramifications for credit unions.
Credit unions can help provide peace of mind to their members by making payment protection options available that are designed to help during covered unexpected life events. These options include a covered unexpected vehicle repair, total loss or theft, involuntary unemployment, a covered disability and death to the borrower. In fact, this year 64% of consumers indicated that, if offered, they are likely to get one or more payment protection products along with their loan. This is a significant increase from 2019, when only 38% of consumers indicated they are likely to consider payment protection products. 1
While the need is high, consumers may not be consistently offered payment protection. Only 50% of consumers were offered payment protection on their auto loan, and it was even less on personal loans – with only 30% of consumers being offered payment protection.1
Our recent survey of credit unions found that nearly 50% of direct auto loans are starting digitally, and 10% are funding with no human intervention.2 Our investments are targeted at increasing member education. A recent example of this is TruStage’s integration with a partner Loan Origination Service (LOS)®. This consumer tested design has over 40% of credit union members engaging with payment protection product options.3 Member interest to learn more can then be seamlessly transferred to the loan officer, enabling them to engage in a deeper conversation on member need and product fit. The benefit of this integration into digital channels is that members are made aware of their payment protection options 100 percent of the time, and it helps allow lending staff to have more meaningful conversations regarding product fit.
In the evolving landscape of credit union technology platforms, integration with LOS’ have emerged as a promising avenue for enhancing member experiences. This integration extends across a range of crucial touchpoints, including member-facing loan applications, home banking, financial wellness, and communication platforms. For credit unions aiming to delve deeper into integrating their payment protection products, collaborating with their technology providers could open a world of possibilities. By embracing innovative partnerships and solutions, credit unions can elevate their offerings and help deliver valuable protection to their members.
1 TruStage 2023 Consumer Lending Preferences Research, May 2023
2 TruStage Lending Tracker 2022 Survey Results, December, 2022
3 TruStage Lending API Database: Total engagement for all products with MeridianLink, May 2023
TruStageTM is the marketing name for TruStage Financial Group, Inc. its subsidiaries and affiliates. Corporate headquarters are located in Madison, Wis.
