Below you'll find a list of all posts that have been categorized as “defi INSIGHT”
Credit unions want to offer their members exceptional lending services. That’s tough to do when member expectations rise every year. As more lending technology and lending options become available, credit union members expect a lot from their local branches.
Many lenders are getting out of the loan servicing business altogether because it’s too difficult and costly to manage. This is why modern lenders are embracing a better alternative: Third-party loan servicing companies.
Having an efficient back office that essentially runs itself is one of the best ways to stand out in today’s saturated community banking industry.
If you’re looking to improve your customer service specifically, here are just a few of the back office tasks you can delegate to an experienced third party:
Fraud detection and risk management;
Payment processing and repayment scheduling;
Member contact information and communication preferences;
Loan or credit card application decisioning;
Level 1 support;
Customer web portals;
Automated call centers;
Back office to front office communications;
Staff training and recruitment.
If you don’t have an efficient and well-staffed back office, then your front office will suffer. This is where back-office outsourcing comes in. There are a lot of perks to outsourcing all of your back office needs, especially if you’re a small or medium-sized lender with limited resources.
The main problem is that community banks don’t have as many risk management resources at their disposal as larger federal banks. They’re also less likely to get a generous government bailout if something goes wrong. So community banks need proactive risk management systems that leverage resources they already have.
Lending and leasing for vehicles can involve remarketing off-lease and repossessed vehicles. At the end of those contracts, many community banks simply want to obtain maximum value for the pre-owned vehicles in the most efficient manner.
Customer service outsourcing is one of the most valuable tools available to community banks. When you outsource customer communications, not only will customers be more satisfied with your services, you can also save a lot of time. Outsourcing takes the complexity out of communications and gives you a tremendous competitive advantage.
Compared with national banks, community banks have the advantage of a main-street understanding of the unique economic climate of the cities and towns they serve. That gives them an enviable ability to match lending strategies to local needs like regional economic booms or contractions.
It’s not about upgrading to a state-of-the-art system that can handle millions of accounts and loans; it’s about leveraging technology to provide the best possible loans and services for clients who depend on you. To help, we’ve created this quick guide to the top community bank technology trends of 2020.
Major IT advancements now make for quick implementation of innovative services, so that community banks can realize the benefits of the latest advancements without massive expenditures of money and time.
By embracing the latest technology and innovations, even the smallest community credit unions can thrive in a saturated market. In this guide to the top five credit union technology trends of 2020, you’ll learn which must-have features you’ll need to attract new customers and discover the full potential of your lending portfolio.
