Thinking of growing your loan staff? Think again

GOOD NEWS: Loan volume is up.

BAD NEWS: Your lending manager is saying, “We need to hire more people!” Also, the current staff is working overtime.

GOOD NEWS: You may not have to add staff and you may not need to pay overtime.

Before you decide to add staff, step back and answer these questions:

  • How do we know we are using our existing staff to its fullest?
  • How do we know our loan processes are stripped of non-value added steps so we can handle more volume without hiring more people?

Consider the sample credit union below. Before asking these two questions, it was taking the credit union roughly 6,400 minutes or 4 days to make a decision once a consumer loan application was received. Once approved, it was taking roughly 16,400 minutes or 11 days to fund the loan. Before passing judgment, do you know how long it takes your credit union to approve and fund a loan?

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