Modern day banking involves a large number of regulations that have cost credit unions significant dollars. As a result, financial institutions have to find ways to improve efficiencies in their processes to recover those losses, whether it be through automation, streamlining internal processes, or creating new products and services that minimize manual interaction. At the same time, consumers have gained greater control over the buying process, and gaining and retaining new members is harder now than ever with the wealth of choices consumers have in the marketplace and the ease to move. Credit unions need to ask which processes and products can be optimized to drive member satisfaction in order to retain and gain members, while still having the greatest impact on reducing expenses. Changing your lending process is the perfect tactic for improvement that will attract members and keep them satisfied while reducing costs, thanks in large part to e-signatures.
When our parents grew up, they banked with the only credit union in town, or the credit union their parents banked at, or, at the very least, at the first credit union they opened an account with. There was a resistance to change credit unions, as the process seemed daunting. Now, however, there are so many painless options for members. Changing banks can be done with a couple of online forms and a few mouse clicks. Banks are constantly offering new incentives to change, as well. In 2011, nearly 12% of consumers switched banks.
With that in mind, it is imperative to keep members happy while not raising the cost of membership. In order to do that and still remain profitable, a credit union must cut expenses. But how can you cut expenses without cutting services? The trick is to provide a service to members that they want and will benefit them, but behind the scenes saves you money. Technology has allowed for this with e-signatures.
According to DocuSign, electronic document flow has cut credit union lending processing time by 80%. To a member, this means they get their money faster and with less effort, eliminating trips to a branch. To a credit union that services a large rural area, this can be a significant time and cost savings to the member. For the credit union, DocuSign has determined that electronic document flow increases productivity by 1.5X and loan volume 3X, without adding a single new employee. Clearly, this improvement in efficiency will save the credit union money, but will be perceived by the member as a member benefit.
Electronic document flow clearly has benefits thoughout the organization. It increases security of your credit union information, reduces time to completion in the loan process, and helps your operations run smoother. The clearest benefit visible to your members comes from the final step in your loan process, the e-signature. By enabling members to sign from anywhere, you free up their burden and reduce the impact on their time. Getting time back is one of the greatest perks a member can get in today's jam-packed daily life.
Optimizing your efficiency, increasing your security, and providing a quick and easy member experience using electronic document flow in combination with e-signature is a sure-fire way to help your CU reduce costs while continuing to grow.
