Does your credit union offer mobile lending? Probably. Have you personally ever used it to apply for a loan? Probably not. Understanding the ins and outs of the mobile lending process starts with who? You! Putting your staff and board members into the role of a member will only serve to improve your mobile lending products. What you find could surprise you.
According to Robert Israelite, lending and compliance specialist at CUNA Mutual Group, "Many veteran CEOs have expressed disbelief that members are applying for loans on mobile devices, and boards are even further removed. Most credit union staff have never applied for a loan in a member channel, and that’s a problem. They have internal ways of doing it. Staff needs to put themselves in the shoes of a “real member” or potential member who doesn’t have strong ties to the credit union.”
It is surprising the number of staff and board members of credit unions who do not know that loans can be applied for and approved, from their smartphones. And of course, this realization tends to raise the typical questions of What, Who, Where, Why, When, and How...
WHAT is mobile lending? The ability to use your smartphone or tablet to apply for, gain approval on, and check the status of a loan. It is yet another way that mobile phones have revolutionized the age-old practice of lending.
WHO uses mobile lending? Short and obvious answer: Members. Statistics show that the 550 credit unions using the CUNA Mutual Group's online lending platform, for example, receive $2.4 million in mobile loan requests per day. More importantly, though, the answer is, in particular, Millennials. Last year in 2016, tech-savvy and mobile-obsessed Millennials began purchasing houses in large numbers, making up 61% of first-time buyers. Millennials were predicted to originate more than $30 billion in mobile mortgage applications in 2017, and car loan figures were even higher.1
WHERE is mobile lending successful? Used for a variety of credit union lending types, it has found great success in the auto loan department. A record 107 million Americans now carry an auto loan... or about 43% of the entire adult population in the US.2
WHY should your CU implement mobile lending? Because, plain and simple, 77% of Americans own a smartphone, and 92% of 18- to 29-year-olds own one.3WHEN should you implement mobile lending? To be blunt, 3 years ago. But understanding the budget constraints of small and mid-sized credit unions, we know that it's not always possible to get every development in production. However, it is a real opportunity you are missing out on for increased revenue share and attracting Millennials to your member base.
HOW can credit unions offer mobile lending?