Your loan committee can help transform this time of pandemic disruption into an opportunity for your credit union.
While many business sectors are seeing reduced opportunities and pipelines, many credit unions have experienced the exact opposite. Credit unions are on the frontlines working quickly with members to establish forbearance agreements or leverage federal aid programs such as the Paycheck Protection Program for small businesses. While many people are struggling to adapt to the new normal, your loan committee can help transform this time of disruption into a time of opportunity for your institution.
But let’s be honest. Before COVID-19 and social distancing, the prevailing opinion at most credit unions regarding the loan approval process was simple: “If it isn’t broken, don’t fix it.” Mountains of paper, physical signatures and lengthy meetings still ruled the day. The opportunity exists here and now to create a more seamless loan process that retains customers, keeps the loan pipeline at capacity, and disperses new loans faster and more efficiently than ever.
The solution is simple: a board management software platform (or “board portal”).
On one hand, board portals are not new. Credit unions have deployed them for two decades now. Your institution may even have one installed already. They’ve mainly been used by the board of directors, the charitable foundation or the policy committee.
On the other hand, the use of board portals by the loan committee is new. Board portals can equip senior management and lending officers with a way to organize, track, review, comment and approve loans—from anywhere and at any time.
Below are some features your board management software will need to make conducting loan approvals a breeze:
- Secure voting, which quickly allows committee members to signal whether they approve or deny the loan application, regardless of their physical location.
- Real-time instant chat, which allows committee members to ask questions and collaborate in real-time to discuss the application and make more informed decisions.
- Accessibility, which ensures you are available anywhere on any device at any time. There is no longer a need to delay decisions until a physical, in-person loan committee meeting can be held.
- E-signature, which lets the loan officer approve or deny a loan with one click.
Here’s one credit union’s loan committee process that uses a board portal to replace their existing, time-consuming process:
- Loan applications are uploaded, and all stakeholders are notified in real-time.
- Executives ask questions and get a real-time response.
- Loans are quickly approved or rejected throughout the week.
- Notifications of the approvals are automatically sent by the board management software to loan officers and processors.
- The funds are dispersed.
During these times, customers are looking to financial institutions for fast and agile assistance. Credit unions must be fast and agile in return. With many customers attempting to get a loan at multiple institutions, you will have the edge over your competitors if you can promise a faster approval time. Using good tools at the right time will make your credit union stand out for all the right reasons.
Paroon Chadha co-founded CUES Supplier member Passageways Lafayette, Indiana, in 2003 and continues to lead its business strategy as CEO. Not sure what you need to look for in a board management software or where to start? This board portal buyer’s guide should help!