Why Your Members Want (and Need) Automated Loan Decisioning
In recent years, a transformative approach to loan decisioning has swept the financial landscape, captivating credit union employees and members alike. At its core, this groundbreaking innovation revolves around automated loan decisioning, a process that goes far beyond mere time-saving benefits. While it undoubtedly frees up valuable hours for credit union employees, its widespread popularity among members can be attributed to a range of compelling factors.
Indeed, there are a number of reasons why members are clamoring for this and other forms of digital lending--all of which are worth a closer look.
1. A Smoother Application Process
For many members, the biggest benefit of automated loan decisioning is also the most immediate: they get to enjoy a far smoother application process than ever before.
In a more traditional financial environment, applying for a loan would, at the very least, require someone to go into a branch. They would have to spend time filling out the information, collecting relevant paperwork, and more--all before the loan can even begin to get processed.
With automated loan decisioning, on the other hand, everything can be completed right from a member's web browser without even thinking about getting in the car and driving to a branch.
2. Paperwork That Finally Ends
Speaking of documentation, another reason why members want and need automated loan decisioning has to do with the ease at which essential information can be provided. In a paper-based, manual decisioning process, the amount of required paperwork to even begin applying for a loan can seem endless to most members.
They need to fill out forms, get documents attested, make copies, and more. They have to go through quite a paper-collecting process, and there's still no guarantee that their loan application will even get approved.
Thanks to the power of digital lending, all of this changes. Documents can be provided quickly and easily, allowing the process to speed along far faster than most people are used to.
3. Massive Time Savings
This segues into the most important benefit of all: the amount of time someone can expect to save as a direct result of automated loan decisioning.
The faster (and easier) it is to submit the application and the required documentation, the sooner the decisioning process can begin. Rather than waiting weeks or even months for someone to manually review everything that has been submitted to make a determination, the whole process can be completed in a matter of hours.
Members get access to the funds they need (or at least the decision they're after) in a fraction of the time it would normally take--creating the best possible experience all the while.
Embrace Automated Loan Decisioning (and More!) to Achieve Member Satisfaction
While your members may not necessarily be able to identify "automated loan decisioning" by name, they're more than familiar with the myriad of different benefits it has to offer. They're always looking for ways to make their lives easier, faster, and more convenient. Make no mistake: they want you to be looking for those ways, too. Automated loan decisioning is how you show members you're committed to precisely that.
At FLEX, we've recently authored an eBook on digital lending for credit unions that goes into more detail on this and other topics that you can use to dramatically boost the member experience. Click the button below to get started.