The past several years have marked a period of tremendous shifts and advancements in technology for the credit union industry. Amplify Federal Credit Union($426M in, Austin, TX), a fast growing credit union in Texas, is a shining example of how a credit union can seize on the business opportunities such changes bring by making technology and automation the cornerstone of its business strategy.
One of the biggest challenges Amplify faced was how to handle loan applications coming through a variety of online and offline channels, especially when each was disjointed and de-centralized.
"A few years ago, our loan origination system was incorporated in the host and a bit antiquated to say the least," said Pierre Cardenas. "It did not have a robust automatic decisioning capability and could not support an indirect lending program."
In addition, Amplify was at a 64 percent loan-to-share ratio at the time and had a modest loan application volume coming from the branches, call center & internet. Underwriters were making individual decisions which were inconsistent across the board. A serious change was long overdue. It would require a global solution that would combine the direct, indirect, internet and call center channels together as one with automatic decisioning capabilities consistent through each channel.
It sounded like a simple task but to Mr. Cardenas' surprise, not many technology vendors offered a simple solution flexible enough to meet his needs.
As Amplify went out to evaluate technology partners, they identified a few key requirements including:
- The need for one centralized database for all lending channels including indirect, direct, call center and internet.
- Real-time, bi-directional integration with the core system for more automation.
- Open, flexible, scalable architecture for future needs.
- An experienced vendor that listened closely to the needs of Amplify.
After evaluating against these requirements, Amplify found its partner in Teres Solutions , a top provider of direct and indirect lending software and technology solutions to credit unions and financial institutions across the country. The Teres Solutions ' SAIL® (Software Application for Integrated Lending) platform allowed Amplify to create one database for all its lending channels, including indirect, direct, call center, and the internet. By integrating with the core system and each lending channel, all loan requests pass through the SAIL system. One of the benefits is consistency in underwriting.
"Teres Solutions quickly linked with our existing channels and departments and allowed us to create the single database of members we needed to handle a multi-channel loan environment now resulting in over 35 percent of the decisions being done automatically." said Mr. Cardenas.
Amplify is now able to automatically process and approve or decline a large majority of the loans it generates online and through the lending networks. Mr. Cardenas estimates Amplify approves 35 to 50 percent of the loan applications it receives each month without ever running them by a person.
"With the automation capabilities provided by the Teres Solutions ' SAIL platform and the hard work we did to centralize our loan application database, we booked as much as $25 million in loans in one month," explained Mr. Cardenas. "We are averaging between $15 and $20 million in loans funded with only two buyers for both indirect and direct areas. It's also only a fraction of what we plan to do in the coming years, especially as the volume of loan applications increases as the credit market tightens."
Find out more about Teres Solutions ' SAIL products: www.TeresSolutions.com.