Leveraging Technology to Streamline Credit Union Lending

Man touching a personal loan concept on a touch screen with his fingers
Brit Barker, CMB, AMP Photo

4 minutes

Six ways a modern loan origination system can optimize your lending processes.

This article is sponsored by CUESolutions provider Origence.

Credit unions have long been recognized as leaders in consumer trust, maintaining a reputation as safe and reliable partners for their members. To uphold this trust and stay aligned with evolving consumer expectations for seamless digital interactions, credit unions must prioritize technological advancements.

As economic challenges continue to persist, your budget for technology may not compete with the big banks—but that doesn’t mean credit unions can’t modernize.

With a history of resiliency, credit unions fare well during tough economic times. Your member focus and structure allow you to offer affordable products, which results in an influx of new members as consumers seek lower interest rates and manageable monthly payments. However, to stay competitive during an evolving digital age and manage the increased interest of new and existing members, credit unions must find ways to optimize their lending and become fast, easy and better lenders.

A modern loan origination system is key to doing this. With the right technology, you can modernize your lending experience to keep pace with digital-native competitors, enabling you to retain members and attract new borrowers.

The Modern LOS

In an era of convenience and instant response that we’ve all become accustomed to in everything we do, it’s no surprise that the lending process needed to evolve as well. Buyers want an easy, secure and mobile application along with an instant decision, and modern technology is already providing it.

A modern LOS goes beyond mere functionality by incorporating comprehensive features and integrations to ensure a seamless and secure experience for borrowers, while simplifying processes for lenders and members. It’s not just about providing what the market demands—an advanced LOS can increase approval rates without taking on additional risk. By leveraging AI and leaning into the latest technology enhancements, a modern LOS becomes the key to thriving in today’s market. Here are some of the many ways a modern LOS can optimize your lending processes:

1. Enhanced Borrower Experience

Credit unions can benefit significantly from a modern loan origination system by enhancing the borrower experience. This includes implementing intuitive, fast and secure loan application processes optimized for mobile devices. By adopting protected methods for transmitting loan applications and personal documents, credit unions can mitigate cybersecurity threats and ensure a seamless experience for borrowers while also streamlining processes for lenders. Additionally, the borrower experience is dynamic and while finishing the loan, the platform can complete the membership eligibility and account origination necessary for new members. All of which, reduces the friction in the loan process improving the member experience as a whole.

2. Improved Transparency and Trust

Transparency and trust are paramount in the lending process. A modern LOS enables credit unions to offer real-time updates and direct communication channels through member-preferred channels. Borrowers can track their applications and inquiries seamlessly, leading to a clearer understanding of terms and conditions and fostering trust between the credit union and its members.

3. Efficient Collaboration in Underwriting

Efficient collaboration is essential for smooth underwriting processes. A modern LOS allows credit unions to integrate configurable workflows tailored to their unique needs. This includes cross-departmental collaboration and simultaneous work on loan applications, along with automated decisioning processes that ensure faster approvals while maintaining compliance checks.

4. Equitable Decisioning and Inclusivity

Credit unions can promote inclusivity and make more equitable credit decisions with the help of AI decisioning tools integrated into their LOS. These tools evaluate applicants' creditworthiness holistically using machine learning algorithms, leading to increased approval rates without compromising risk management, especially for marginalized borrowers.

5. Seamless Integration and Data Management

Integration and data management are crucial in delivering a seamless member experience. A modern LOS seamlessly connects with key platforms such as the system of record and online banking software. This integration ensures automated record-keeping, electronic document storage for advanced analytics, and a consistent member experience across multiple products and services.

6. Future Growth and Expansion

By leveraging advanced loan origination technology, credit unions can position themselves for future growth and expansion. This includes retaining loyal members and attracting new borrowers with consumer-friendly loan options. A modern LOS empowers credit unions to confidently extend credit to more borrowers, thereby fostering growth for both the institution and the community it serves.

Embracing advanced loan origination technology is paramount to retaining loyal members and enticing new borrowers in the digital age. A modern LOS proves increasingly valuable as more borrowers seek out credit unions for their consumer-friendly loan offerings.

Are you ready to uncover the potential of these advancements? Learn how the Origence arc loan and account origination platform can elevate your current and future lending processes by going to our website and contacting us today.

Brit Barker is SVP/sales for CUESolutions provider Origence. He is an experienced sales and product executive with more than 20 years of experience helping financial institutions improve their lending performance and exceed consumer needs. He’s a recognized industry leader with innate talent in balancing strategic focus with operational execution. Brit is an authority on consumer and indirect lending, with expertise in Lending Enterprise systems and technology, facilitating the transition of new clients into the financial lending market, and the overall consumer/lender experience. 

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