small business loan servicing solutions

CREDIT UNION LENDING SYSTEMS: A SELECTION GUIDE

The defi Team Credit Unions, defi INSIGHT

credit union lending systems

The sustained economic growth of recent months and an optimistic outlook presents credit unions with an opportunity and a challenge. There’s an opportunity to deliver additional financial services to new and existing members who want to leverage their improving financial standing. This is combined with the challenge to provide the quality of lending services expected by the borrowers who have become accustomed to efficient, on-demand, digital transactions.

Does Your Lending System Address Today’s and Tomorrow’s Needs?

For too many credit unions, a review of their current system brings the realization that improvements are needed. Based on more than three decades of lending industry experience, we offer a quick selection guide highlighting the capabilities that modern credit union lending systems should provide. These capabilities establish a solid foundation to address today’s lending needs and to easily incorporate functionality to remain current, efficient, compliant, and profitable as your market evolves.

Credit Union Lending Systems – What Do You Need? 

We’ve organized this selection guide into two sections: The first covers critical capabilities that enable a more efficient loan origination process; the second section focuses on capabilities that support the unique account servicing needs and improve the experience for credit union members and agents.

 

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Loan Origination Efficiency

Capability Reason
Cloud-Based Platform  Proven CapEx and OpEx advantages in comparison to on-premises solutions. Frequent, automated software updates allow users to take advantage of the latest functional improvements and features. Easy integration with an ever-growing number of innovative cloud-based lending services designed to enhance decision quality and productivity.
Configuration Allows lending professionals to customize and modify user interfaces, credit policies, workflows, formulas, and decision rules. No need for programming skills to make modifications. Automatically maintain a record of configuration changes in support of compliance requirements.
Integration with Cloud-Based Services  Quickly extend the functionality with innovative capabilities such as alternative data sources, employment and income verification, fraud identification, vehicle valuation, and e-contracts. Select those services that meet your specific lending process needs.
Analytics  Integrated analytics with pre-configured reports give lending professionals critical insight into the sources and attributes of loan applicants, underwriter productivity, risk factors, and loan performance. No need for database or data scientist skills. On-demand access to reports that deliver accurate, current analysis supports continuous process improvement and optimized lending strategy. 

Account Servicing Efficiency

Capability Reason
Integrated Account Administration Platform  Provide a seamless transition to servicing by easily importing contract data generated during loan origination. Comprehensive accounting engine maintains a general ledger chart of accounts and maps portfolio balances to corporate general ledger for real-time processing and reconciliations. 
Configuration No need for costly, time-consuming custom programming. Use rules and parameters to define and control workflows and servicing processes and tailor them to your unique lending needs. Map portfolio balances to corporate general ledger for real-time data synchronization.
Default Management  via Automation Create rules within workflows to track and manage delinquent accounts. Automate routine collection steps allowing agents to focus on more complex cases. 
Third-Party Integrations  Easily add capabilities such as AutoVIN and AiM vehicle

Inspections, Dealertrack Payoff Quote, LexisNexis Bankruptcy Monitoring, and Recovery Data Network Repossession to further improve account servicing efficiency.

Real-Time Data Processing and Reporting  Eliminates out-of-synch data caused by overnight batching. Agents always access current, accurate borrower data and loan status, bringing efficiency to all dialer queues and other borrower communications.
Multi-Channel Customer Care  Configurable workflows execute, track, and record all inbound and outbound borrower interactions (phone, email, text, post, chat), including welcome calls, fulfillment, and complaint investigation and resolution. 
Comprehensive Collateral Management Support the spectrum of auto, truck, and motorcycle, marine, and recreational vehicle financing needs. Track and manage titles, identifying those missing, requiring corrections or re-issuance. Process state-to-state transfers.

Automated alerts for balloon accounts about to mature. Present borrowers with educational services and tailored retention programs.

Efficiently liquidate repossessed vehicle inventory. Remarket returned vehicles with auction updates until vehicles are sold.

How Does Your Current System Compare?

This quick selection guide provides criteria for decision-makers to evaluate their current credit union lending system and identify key areas in need of improvement. Cloud capabilities, easy integration with innovative lending services, extensive automation, real-time data processing, and the ability to configure the system to meet unique lending processes are critical to efficiently delivering services in a cost-effective manner. Today may be the ideal time to invest in capabilities that position you well for the future.

Want a Deeper Dive Into How These Capabilities Can Benefit You? 

We’ve written a few blogs to help you gain a better understanding of lending system technology and business process outsourcing benefits:

 

 

Getting Started

defi SOLUTIONS provides configurable loan origination systems, loan management and servicing, analytics and business process outsourcing for credit unions. If you’re struggling with the limitations of your current lending system, take the first step in realizing the benefits of modern platform. Contact our team today or register for a demo.

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