Digital lending has been available to credit unions for quite some time, but with new emerging technologies and the fast-paced nature of consumer lending, it’s more important than ever that digital lending offers members more than a paperless process. Members, especially Millennials, not only want, but expect a quick application, and even faster decisions. A recent PwC report found that three of the four demographic groups polled in their study would rather be online for each phase of the borrowing process as opposed to more tradition channels, ie. in-branch or over the phone. The best way to customize the application and decisioning process while meeting the requirements of your CU is through digital lending technology, making it more efficient for both members and staff. Here are 4 benefits of digital lending.

4 Tips to Successfully Implement Credit Union Mobile Lending

Recent market research has illustrated the potential for credit union mobile lending solutions and even suggests that if it's not a part of your short-term strategic plan it should be. According to recent Pew research, 78% of adults in the country own a mobile phone and 43% of them regularly use their smartphone for financial management and mobile payments. Further, CUNA Mutual Group statistics report that 550 credit unions using their company’s online lending technologies have received $2.4 million in mobile loan requests per day. This is evidence that credit union members are doing their due diligence in researching what is available to them and that providing a customized personal mobile lending solution is important.

“People say that money is not the key to happiness, but I always figured if you have enough money, you can have a key made.” -- Joan Rivers

It’s true. One key to happiness for credit unions is a good mobile lending strategy and enough money can certainly help one achieve it. However, spending money does not always equate to success, and a good credit union mobile banking strategy is not just something you buy. Before seeking answers from industry experts and technology providers, credit unions should first carefully consider the right questions.

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. 

How easy is your mobile lending process?  Not how easy it was for your developers to create it, nor how easy it is on your back end processes, but the part that really matters: How easy is it on your members, or potential members, to start and complete a loan application? If your mobile loan applications prove to be difficult, applicants will grow frustrated and abandon the process. A mobile loan is supposed to be easy, and the process to the end user should be a slam dunk... an easy, uncontested two points for both your credit union and your members.

Your member numbers are up. Your product portfolio has evolved to meet the demands of the financial industry. You invested in the technology that millennials expect, and have been active on a variety of media channels to attract new and younger members. While all signs are pointing to a banner year for your credit union, your loan portfolio is lagging. Why aren't your new members borrowing from your credit union? Let's take look at possible areas where your credit union lending solutions may need some minor tweaks, or possibly a complete overhaul:

Mobile banking has become an important pillar of success to credit unions, and even more important to your members. In today’s banking climate, Millennials are the most sought after demographic, and it’s no news that they have entered the game with expectations on mobile banking. Millennials are leading the change towards paperless banking and as the largest generation (85-90 million people), this demand should be taken seriously. Americanbanker.com states that 92% of Millennials choose a bank based on its digital services. Here are three things Millennials will expect from your mobile banking app and how you can capture their membership?

The past year has thrown a number of curve balls our way. The presidential election outcome caused major shockwaves. The Cubs finally won a World Series. Cleveland broke their championship drought with an NBA ring. Miss Colombia was crowned Miss Universe... and then she wasn't. LaLa Land won best picture... and then it didn't. Despite all these quirks in the universe, one constant has remained: Nobody seems to like millennials.

Lunch time arrives and it's time to heat up your leftover chicken and rice from last night's dinner. You make your way to the break room and throw your tupperware in the microwave and two minutes later are enjoying the food heated to the proper temperature. Most people don't sit there and contemplate the inner workings of the microwave and how Percy Spencer leveraged radar technology developed during World War II to invent it. They simply care about warm food. Similarly, members don't think in terms of core technology or credit union software, they are only concerned about the convenience and overall experience they receive. It's only when your technology fails to provide what your members need that it becomes an issue for them. So, ask yourself, are credit unions in the technology business or the financial services business?