eSignature Predictions from 2013, They Were Right!

By Preston Packer |

Jan

31

Six years ago, many credit unions were skeptical of electronic signatures. In 2013, about 10% of credit unions larger than $20 million in assets offered eSignatures and those with fewer assets adopted the platform at even lower rates. Today eSignatures are a coveted member benefit and those who predicted it would become an integral part of the digital lending process back in 2013… they were right!  At the time, eSignatures were fast growing, and in just one quarter eSignature integrations shot up 25%. Early adopters even found that pull-through rates on applications increased up to 20% as a result of eSignature options. If electronic signatures were providing results all the way back in 2013, then it should not come as a shock that the feature is even more important within digital lending processes today. Here’s why credit unions that have yet to implement eSigntaure options should take the leap this year.

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Digital Lending Has Come Full Circle

By Preston Packer |

Jan

29

 

Despite popular belief, digital lending has actually been around for quite some time. It began in the 1990s around the dot-com era with digital mortgage and consumer lending. While it wasn’t a popular solution back then, digital lending today has come full circle. Many financial institutions offer digital lending in some capacity. A recent survey by the ABA shows that digital lending could for 10% of all consumer and small business lending market by 2020. Despite this, there are many FIs that do not offer it, or they only offer digital options for part of the lending process. While those banks and credit unions have certainly gotten by without full digital lending, they are missing out on features and opportunities that it can provide. Here are 5 ways that digital lending can improve your credit unions lending process.

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How Digital Lending Helps Small Credit Unions

By Preston Packer |

Jan

23

In 2015, just 7% of banking services were completed on digital platforms from start to finish. While the credit union industry has made great strides in the last few years, there is still a lack of digital options for members. This can be a huge deterrent for members especially when digital lending isn't offered. Some small credit unions might be under the impression that they won’t benefit from digital lending platforms due to the demographics of their membership or for budget constraint reasons. However, it has been proven to help many small CUs in crucial ways. Here are some questions small credit unions should keep in mind when considering digital lending platforms.

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Digital Self-Service is Key to Winning Millennials & Gen Z

By Preston Packer |

Jan

18

Many Baby Boomers are transitioning into retirement where their portfolio is shifting from wealth-building to waning assets. About 50% of credit union members are now 53 or older, and even though they will continue to rely on credit unions for their wealth management, CUs are in need of new members who are in their prime growth stages. Millennials and even some Generation Z-ers are now the target audience for credit unions as they are beginning to buy houses, cars, and paying for (or paying off) college. Millennial’s older sibling, Generation X, comprise 31% of the CU demographic largely due to the financial crisis in 2008 and 2009. They joined after becoming frustrated with big bank bailouts and stayed for personalized financial services. 10 years ago, Gen X fled to CUs, thus fulfilling their need for new, young members. However, Millennials and Gen Z will not be so easy to capture. Big banks have 10% more Millennial members than credit unions, and there’s one key way that CUs can win their business: digital self-service.

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Automated Decisioning Trends to Compliment Your Lending Strategy

By Preston Packer |

Jan

16

In addition to digital lending, another scalable technology has grown in popularity, especially in recent years. While credit unions both large and small were initially skeptical of automated decisioning, it is now being implemented at higher rates. The alternative to auto-decisioning, human review, was long-considered a more reliable form of decisioning by many credit unions. However, with increasing loan growth, credit unions have grown more comfortable with the idea of automation. The U.S lending portfolio has increased by 61.8% over the past five years, and last year, credit unions saw loan growth of 9.7%. Consumer loans are the fastest growing category, increasing 20.2% over the past year and 93.7% over the past five years. Due to this rapid growth in the consumer loan space, credit unions have been forced to reassess the efficiency of their lending process and many have taken the leap to adopt automated decisioning. For credit unions who are still on the fence, here are three factors to consider.

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Digital Lending Customization is Something to Taco Bout

By Preston Packer |

Jan

10

Providing exceptional member service is at the heart of every credit union’s values. However, with increasing competition in the banking world, good service alone will not be enough to keep members truly satisfied. So what is it that members are seeking now? Surprisingly enough, it’s not always lower rates. Savvy members are still interested in competitive pricing, but a member’s loyalty doesn’t lie with bargain banks either. What members want is customization. Taking an example from another industry, one of the first organizations to provide a unique and customized experience is a fast-casual restaurant many know and love: Chipotle.

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4 Tips for a Better Digital Account Opening Experience

By Preston Packer |

Oct

10

When a financial institution states they offer digital account opening, oftentimes that's not the reality. True digital account opening means that the entire process can be completed online, without a visit to the branch. Most credit unions are somewhere in between true digital and traditional in-branch applications, where the process can be started online but must be finished in-branch. With digital ruling as the preferred method of communication for many, providing a complete digital experience for account applications is important for credit unions both big and small. Here are four ways credit unions can get on board with digital account opening.

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10 Internal Factors that Determine Lending Success

By Preston Packer |

Sep

18

Market conditions are a contributor to the number of loan applications that you receive, but ultimately, your staff and solutions are what make a great lending partnership between members and your credit union. There are several factors within your control that can help your lending process become more efficient, effective, and successful. Here are 10 factors to consider when refining your credit union's lending process.

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10 + 1 Ways to Grow Direct Loans with Fewer Employees

By Preston Packer |

Aug

23

Efficiency is the goal of every credit union executive, increasing revenue while operating in a lean environment. Lending is the bread and butter of the credit union's revenue stream, and many credit unions are looking to grow their loan income without increasing staff count and expenses. There are several ways to bump up direct loans efforts but it all starts with your employees. Your staff is the most essential element when it comes to creating a seamless member experience. After all, that’s one of the primary reasons people choose credit unions - for their outstanding member service. Here are 10 ways you can optimize your staff roles and operations to grow direct loans, and one way you can promote it:

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10 Fast Facts about the Credit Union Industry

By Preston Packer |

Aug

14

Credit unions often carry a reputation for being too small or not providing the same range of services compared with bigger financial institutions. However, credit unions are a $1.4 trillion industry and they are aggressively competing with their counterparts in the banking industry by offering products and services members are demanding.1  Credit unions have made huge strides to become competitive with banks, and offer a wider variety of members services than one might expect. Here are 10 fast-facts about credit unions that may surprise you:

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