The pandemic has turned digital preference into a priority. Out of necessity, many banks and credit unions were forced to stretch beyond physical interaction and offer a completely digital experience. As a result, lenders have improved their online loan application process, making them quicker, easier, and user-friendly. According to a recent survey, nearly two-thirds of people who have applied for loans within the last two years complete them partially or completely online. As a credit union, it's time to recognize that today's consumers desire online and mobile solutions, and deliver just that.
Digital Applications Are Under-Reported
Although the number of reported digital applications has steadily risen, they are vastly under-reported because of deserted digital applications. Prior reports have claimed the demand wasn't high enough, but COVID-19 highlighted the truth. The percentage of users who began applications online or via mobile device have declined due to tracking failure and false reporting. So members are active online even more than credit unions realize!
How Credit Unions Can Increase Lending
To fix this loan attribution issue, CUs must keep a close eye on applications that start digitally but end up at a branch. They also need to adjust their lending process to make it user-friendly with digital options. Here are a few tips to consider that can help increase your lending and grow your credit union.
- Offer a Speedy Experience
Applying for a loan shouldn't have to be a tiresome and drawn-out task that causes a poor member experience. Nowadays (especially with Gen Z coming to the forefront), you need a quick and user-friendly online or mobile application that consumers can complete in a few swipes or clicks. The most successful credit unions have an app members can fill out within five minutes or less, with almost immediate approval and fund distribution within 24 hours. - Save App Data (Don't Make Them Restart!)
Sometimes people don't have all the information they need to fill out the application, or sometimes life happens and pulls them away. In these situations, having a "save and resume" application with pre-fill capability gives members the flexibility to save and come back to it. It also improves the member experience when they can stop on one device and resume on a different device (smartphone, tablet, computer). - Eliminate the Need For In-Person Visits
Consumer convenience is key. If you can make a task easier for someone, they will almost always appreciate it. Signatures, identity confirmations, and various steps involved with loan documentation tend to require an in-person visit. However, incorporating simple features, such as eSignatures, is a profound and seamless way to bridge the gap. The easier and more convenient you make your processes, the more attractive your CU will be. - Focus on Successful Member Onboarding
It's critical that every credit union attract and form strong relationships with its members, building trust and assurance along the way. You should strive to move past the initial singular account relationship and into a full-fledged membership. To do this, you should engage in consistent communication, do your research on each member, and figure out how to fulfill their needs. Once you prove that your services add value to their lives and finances, you'll most likely be their trusted lender for a long time. For more help on member onboarding, download our Member Onboarding eBook!
Both the pandemic and technology have made an impact on the way financial institutions function. Experts predict the digital lending market will be at $587.27 billion by 2026, despite past reports claiming a low demand for digital applications. This expected insurmountable growth calls for credit unions across the country to step up their digital lending game. To increase your lending, your CU should provide a quick and easy process, offer "save and resume" functionality, partner with a core solution that delivers integration of products that reduce in-person visits and concentrate on effective member onboarding. Doing so will ultimately benefit you and your valuable members,
Are you looking to boost your lending in 2022? Download our Digital Lending eGuide and Digital Lending Best Practices today.
