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Income > Expenses = Success
While there is always a human element to consider, there is a lot of science and math in running a credit union. Sometimes we need to look at the fundamental facts for answers to complex problems. You need to improve processes so your credit union operations run efficiently, because inefficiencies cost you money. While credit unions are known for their human focus, now and then we need to get back to the known variables to determine the unknown ones, and find a solution. Let us show you how to apply the scientific method to improving your credit union member experience.
STEP 1. Make an Observation.Observation: Our loan process takes too long from application to closing.
STEP 2. Form a Question.
After making an observation, a scientific mind seeks to learn more about it. Build your question around your observation and how to solve the obstacles you perceive.
Question: How can we make the loan application process faster?
A hypothesis is an informed guess as to the possible answer to the question. It may be formed right after you ask the question or it may require research. You may have an idea of what is causing the observed issue and how to solve it. This is your hypothesis, it is based on cause and effect... it may not be correct, but provides the direction you should take with your research.
Hypothesis: My loan process takes too long because gathering signatures takes too long. Reducing the time signature collection takes will reduce my loan process time.
STEP 4: Conduct an Experiment.
Now it is time to test your hypothesis and conduct controlled experiments to determine if your hypothesis is correct or if there is another possible answer to your question and solution to your problem. The key word here is "controlled." Be sure to test just one variable at a time, with all other conditions being the same. This will require multiple experiments but should yield a result that either proves or debunks your hypothesis. This is the most important part of the process, and will take the longest to complete. But it is crucial not to rush through it or get stuck in one train of thinking, which can skew your results.
Experiment: For your benchmark data, have your loan officers document the amount of time it takes to gain the signatures to complete a loan application using traditional signature collection. Have each loan officer document the amount of time the signature steps in the loan process takes for 2-3 loans each. Then test your hypothesis using a method you believe will work, in this case, e-Signature for credit unions. Have those same loan officers document the same data for the same type and number of loans, but this time using an alternate method, e-Signatures.
STEP 5: Analyse the Data and Draw a Conclusion.
During the experiment, it is imperative to take great notes. Don't rely on a single trial for each variable, but to repeat the process to prove a consistent result. After analyzing the results, determine if they prove your hypothesis. If the hypothesis is correct, then your question will be answered. If the data proves your hypothesis incorrect, go back to step 3 to draw a different hypothesis based on what you observed and go through steps 4 and 5 again, until an experiment proves a hypothesis and answers the question.
Conclusion: The loan application process is moving too slowly. By reducing the time it takes to obtain signatures from the member, using e-Signatures, we can significantly reduce the total time the application process takes.
It doesn't take a scientist to know that waiting for the USPS or driving to a branch to sign documents can be a drag on loan application time. But, it does take a technology savvy core provider to ensure your electronic signature and document process is secure and efficient for your members. Here is a scientific fact: Reduced loan processing time + the CU difference > traditional bank loans.