Credit unions have become hugely popular over the last few decades for a number of reasons. For starters, they offer a more personalized and member-centric approach to financial services that a lot of larger organizations simply cannot match. They also offer safe, reliable services that members have come to depend on and even expect.
Of course, none of that is to say that your credit union can't apply modern technology to make those processes, procedures, and services smoother and more efficient for everyone. Case in point: loan decisioning. With the right approach to automation, it's possible to dramatically improve your credit union's capabilities in a number of important ways.
In the context of the loan decisioning process, automation can help remove as much friction as possible for both credit unions and their members alike. Modern-day members want to be able to apply for loans right from their smartphones, tablets, or other mobile devices. They want to do so without the fear of their sensitive financial information getting compromised.
It is important to note that security is the bare minimum of what people expect when performing important financial tasks like applying for a loan. Automation can take these even further by leveraging existing member data in innovative ways. Credit unions can quickly identify borrowers based on past credit usage and other performance factors. They can categorize them based on how traditional (or in some cases, non-traditional) their credit profile happens to be.
Not only is it easier for credit unions to identify those members who are prime candidates for certain types of loans, but it also makes the process of applying for those loans as efficient as people want. Based on actionable data and insight, credit union leaders can quickly say "yes" to more applicants, increasing satisfaction and loyalty along the way.
In a larger sense, think of automation as an opportunity to complete a task A) in a fraction of the time it would normally take, and B) in a more efficient and satisfying way for everyone involved.
Within the context of loan decisioning, members are undoubtedly applying for loans ahead of some major purchase or other life event that they're enthusiastic about. Automation speeds up a process that used to take days or even weeks. Credit unions no longer require employees to wade through massive volumes of documents before reaching a decision.
Everyone saves time and can focus on more important matters that need their attention. Moreover, everyone is more satisfied with the outcome, because members get access to critical funds quickly and credit union employees are relieved of the burden of sifting through stacks of paper documents to make a decision. It's a win-win situation, and it wouldn't be possible without automation.
Loan decisioning is just one part of the larger lending process. Your credit union needs to be able to look at each link in the chain with the same level of scrutiny, identifying opportunities for improvement in a way that makes the entire process easier and more enjoyable for members. At FLEX, we've recently authored a helpful eGuide on digital lending for credit unions that provides additional details about this process. To find out more or read it for yourself, click the button below to get started.