With a mobile device in everyone’s hand, credit unions need to attract and convert new borrowers through simple, easy-to-use digital tools. Alternative lenders and other disrupters are actively competing for loan volumes, and credit unions have a unique opportunity to engage members through end-to-end automation and capabilities that connect with the entire digital banking ecosystem, translating into better user experiences, faster decisions, and lower operating costs. Given today’s climate, digital lending and onboarding capabilities are a necessity to thrive within the consumer lending landscape, and a must-have in 2021. Below are four reasons why now is the time to make that move.
Reason No. 1
Gain a competitive edge with intelligent tools. Credit unions of all sizes should consider the emergence of alternative lenders, including new online lenders and other disrupters that lead to member attrition. Exceeding member demands is synonymous with the pace of innovation, which means credit unions must leverage advanced capabilities and automation techniques to deliver fast, personalized, and memorable lending experiences for measurable, sustainable growth. Offering nimbler, more efficient, and highly compliant operations through digital lending leads to greater levels of borrower satisfaction, allowing lenders to focus on what matters most: member service and engagement, paired with companion services and complementary offerings throughout the entire digital ecosystem.
Reason No. 2
Automation and customization deliver more-meaningful interactions. Despite some institutions’ best efforts, automation often takes a back seat, ultimately hurting efficiencies. While member-facing enhancements are always practical, maximizing application volumes and approvals depends on delivering high levels of mobile flexibility, ease-of-use, and automation throughout the entire user journey. With digital and mobile capabilities for both borrowers and lenders, 24/7 access is available from any device, at any time. Combined with auto-decisioning, credit unions benefit from the ability to blend custom business rules with compliance requirements, speeding the underwriting process and onboarding new borrowers quickly and painlessly. Transforming the lending UX from paper and manual processes to electronic workflows is a strategic change. Employees like underwriters and loan officers get powerful, time-saving, intelligent tools that allow for more meaningful interactions and expanded member services.
Reason No. 3
Expand marketplace potential. Disruptors continue to make inroads, particularly amongst millennials and Gen Zers, offering simple, easy-to-use mobile tools that simplify the banking and onboarding process, providing the rapid-fire digital experiences they’ve grown to expect. Mobile channels are preferred by these generations, as they conduct most banking activities through their smartphones but also look to their financial institutions for advice. Here in particular, digital lending can be considered the gold standard for attracting these tech-savvy members, pairing a simple application process with the unique opportunity for financial education based on spending habits and other banking activity. Own the complete member journey of those who rely on digital technology the most, from the convenience of their phone — from application to lending and financial management under a single umbrella.
Reason No. 4
Big data enables better decisioning and personalization. While serving their members, credit unions process massive quantities of data across all touchpoints, revealing invaluable insights, trends, and patterns. This presents a growing need to effectively leverage that data to better manage business operations and ultimately meet dynamic and evolving borrower expectations. While lenders have always relied on data for decision making and underwriting, capabilities today enable a 360-degree view of critical knowledge that can be applied to risk assessment and loan decisioning. By aggregating pertinent data from multiple sources, including credit bureaus, lenders can rely on intelligent LOS platforms to engage the right members with the right solutions at the right time, ultimately driving increased loan activity and overall efficiency. Additionally, credit unions benefit from the enterprise-wide view of member data to drive personalization efforts, understanding what new loans and other products should be offered to members based on their spending habits and other digital behaviors. By cultivating an understanding of what mix of products and delivery channels leads to better acceptance from members, credit unions significantly impact loan growth strategies.
Looking to digitize and streamline your lending operations? Partner with Alogent and discover an end-to-end, mobile-first, cloud-based loan origination solution (LOS) with FinanceGenius. Built by lenders, for lenders, FinanceGenius is scalable and proven to automate the lending process through auto-decisioning and streamlined workflows. With intuitive digital tools that foster engagement between borrowers and lenders, FinanceGenius delivers speed, automation, and efficiency, making it fast and easy for members to apply for loans and employees to take action them — at any time, from anywhere.
Learn more at alogent.com/process-automation/financegenius
Cameron Marks is Director, Product Management, at Alogent.