Centralized lending is all about creating a clear, concise plan to improve the lending experience for your credit union members. It eliminates a lot of the issues associated with alternative methods and can maximize the skill sets of employees along the way. In a larger sense, centralized lending is also a way to improve efficiency and increase revenue. Understanding how allows you to start using these concepts to your advantage.
Increase Centralized Lending Efficiency
Automation
The average loan processing procedure takes about 52 steps to complete. Automation helps to streamline this as much as possible. Automation provides a better user experience, improves speed and accuracy, largely eliminates human error, and reduces delays.
Digital Documentation and Verification
Digital documentation and verification make sure things like bank statements, employee records, and business documents are authentic. One major benefit is that it helps you maintain regulatory compliance. It's a process that is highly accurate, scalable, has no latency, and enables faster onboarding.
Mobile and Online Platforms
Mobile and online platforms allow members to submit loan applications without going through a traditional credit union branch.
FLEX's mobile banking app has found success with making sure the sign-in process is fast and easy, offering security to help provide peace of mind for the member, and cutting down on the amount of time it normally takes to complete essential banking processes.
Integration of APIs
Financial API integration are tools that allow software programs to communicate with one another. Essentially, it's a way for two applications you're already using to directly exchange data.
FLEX offers a wide range of integrations on its open API, including but not limited to emergency loans, instant loans, and indirect lending.
Risk Management Systems
Risk management systems help credit unions accurately assess the creditworthiness of potential borrowers using advanced analytics and insights into their financial health and repayment capacity. Risk management systems bring with them a heightened level of financial stability, easier regulatory compliance, and can even assist with reputation management for credit unions.
Increase Revenue with Centralized Lending
Cross-Selling and Up-Selling
Cross-selling is when you encourage a member to purchase a product that directly relates to one they are already using. Up-selling is when you offer upgrade or premium versions of products they are using. The major advantage of this is that it helps extract more value from the member that extends beyond the initial point of sale for the credit union.
Diversify Loan Products
Diversifying loan products not only helps to produce superior performance for a credit union, but it also assists with enhancing bank stability at the same time. You can do this by geography, loan type, or even industry. It's a process that helps reduce inherent risk, expands your peer network beyond regional and economic limitations, and helps better serve your community.
Data Monetization
Data monetization helps credit unions leverage data so that better lending decisions can be made. It's an opportunity to plot out all possible risks that come with lending based on factors like the current status of the economy. Credit unions can then make better, more informed decisions and create more accurate strategies for growing their market share moving forward.
Discover More with FLEX's Digital Lending eGuide
Ready to take your credit union's lending to the next level with FLEX's digital lending technology? Dive deeper into this tech in our eGuide. To download your copy and get started on your journey toward increased efficiency and revenue, click the button below. Your credit union's future success awaits!
