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Three Ways to Avoid Silent Attrition From Members

burlap bag with loan written on it balancing with a car and house on a wooden balance
By Glenn Caccamise

2 minutes

Maximize your borrower experience to keep members from looking to other institutions for their lending needs.

Sponsored by Finastra 

Believe it or not, some credit unions are still using outdated manual lending processes that are slow and inefficient and can open the door for members to look elsewhere for their lending needs when they are affected—a phenomenon known as silent attrition. 

Silent attrition occurs when members gradually move an increasing number of accounts to other institutions while maintaining some type of relationship with their current credit union. A major cause of silent attrition is a lack of use of automation and other readily available technology to build speed and efficiency into lending processes. Learn more in Finastra’s recent webinar and white paper based on research from Javelin Strategy and Research. 

If your credit union is still banking on low rates to draw members to loans, members may not perceive the rates worthwhile if the loan application, closing and funding processes take too much time or are too much hassle. Once members start looking elsewhere to have their lending needs met, silent attrition can compound over time. 

To avoid silent attrition of accounts—and eventually loss of the entire member relationship—credit unions must provider faster, more convenient lending experiences. Here are some ways you can be sure you’re maximizing your members’ borrowing experience: 

1. Use Digital Channels With Technology-Enabled Capabilities to Create a Fast-and-Easy Lending Experience.

Use digital channels to create a seamless, fast-and-easy lending experience to help grow your loan portfolio and avoid silent attrition. Using such available technologies such as e-signature and an online application add much-needed speed and convenience to the process as well as increased overall borrower satisfaction.

2. Leverage Automated Data Entry and Workflows.

Leverage automated data entry and workflows to speed up the decisioning process and provide members real-time updates on their loan applications for added member transparency. Built-in automated workflows also ensure operational consistency, accuracy and regulatory compliance. 

3. Create a Culture of Continuous Improvement.

Implore your executive team to champion efforts to periodically review processes, service delivery and member experience to course-correct with a sense of urgency where necessary. Technology is the great equalizer, so leverage this where possible to improve your operations.

Glenn Caccamise is the solution marketing lead for lending at Finastra, where we understand the challenges faced by CUs today to keep and grow their lending portfolios while meeting their members’ needs. We’ve spent 35+ years creating solutions to help automate and streamline the consumer and commercial lending process as well as compliance. Learn why over 3,500+ financial institutions currently partner with Finastra to help avoid silent attrition and provide a better member experience. 

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