small business loan servicing solutions

CREDIT UNION TECHNOLOGY CHALLENGES

The defi Team Credit Unions, defi INSIGHT

credit union technology challenges

Financial pundits continue to predict an economic downturn. We’ve been hearing this for almost a year, yet employment statistics and market indicators keep surprising the pessimists. The continuing prosperity makes this a good time to make strategic technology investments, both to seize current financial opportunities and to prepare for an eventual downturn. That preparation should include solving current technology challenges.

 

Some of the top credit union technology challenges right now are:

 

  • Lack of agility in deploying IT resources and services to meet dynamic processing demands associated with business cycles. 
  • Inability to rapidly implement new applications or modify existing applications to meet evolving market needs. 
  • Obtaining maximum value from the growing volumes of data generated by transactions and customer interactions. 

 

These challenges are answered by innovations in the way IT infrastructure is now deployed and managed, the ease with which new applications can be configured, and integrated analytics capabilities that give credit unions in-depth insights into developing trends, risks, opportunities, and greater process efficiency.

The Agility Challenge: Make Cloud Your Foundation

The cloud is foundational to the way credit unions should deliver digital services to members. Unlike the protracted procurement and deployment of IT infrastructure that can happen in a credit union’s data center, cloud resources can be implemented quickly and scaled up and down in response to changing demands. Distinct advantages of a cloud foundation are: 

 

  • Lower CapEx and OpEx—the result of using IT resources only as needed.
  • Ease of integrating with innovative capabilities such as mobile loan submissions, fraud recognition, identity, employment, and income verification, vehicle valuation, and credit models based on machine learning. 
  • Frequent software updates that enable credit unions to immediately take advantage of the latest performance and functional improvements.
  • Ability to quickly expand services to new geographies without significant IT investments

 

Cloud technologies establish the foundation for greater agility in the way credit unions deliver and manage key applications like loan origination. The cloud gives credit unions the ability to more cost-effectively provide services and significantly greater flexibility in addressing the changing processing demands tied to economic cycles.

The Customization Challenge: Configuration, Not Programming

Every credit union is unique in its lending practices. No loan origination software will meet the exact needs of each credit union without modifications.  Loan origination software solutions that use configuration, not programming, let credit unions make modifications to user interfaces, workflows, decision rules, credit policies, stipulations, regulations, and verifications in a way that matches their unique practices and processes. 

 

Configuration allows business users to select options from menus to create the loan origination processes that conform to their lending practices and quickly modify loan origination processes to respond to the market changes. An added advantage of configuration is an auditable record of all changes made—ideal when changes are associated with regulatory requirements.


Want to find out more about our software and services? Contact our team today.

The Data Challenge: Integrated Analytics

Volumes of data generated throughout the loan origination process are a source of  optimum value when analyzed regularly. Turning that the data into insight tcan improve your lending strategy and operations. Many credit unions have approached the analytics challenge via third-party tools. However, this typically requires the skills of a database administrator who understands the data warehouse schema and can create queries and reports for individual lines of business.  


Analytics integrated with a loan origination solution make it easy for lending professionals to choose from a wide range of pre-defined reports and make modifications to suit their unique reporting requirements. Reports can be scheduled to run automatically and are easily shared with other team members for collaborative decision making.

Credit Union Technology Challenges and Answers

The opportunity has never been better to seize the present and prepare for the future by strategically addressing these critical credit union technology challenges.

 

Challenge Answer
Agility in deploying IT resources and services to support evolving market requirements.  Cloud technologies enable rapid deployment of IT infrastructure, easily scaling up or down, to cost-effectively deliver services.
Develop and modify applications in response to changing market demands and regulatory requirements. A comprehensive set of configuration menus allows lending professionals to quickly customize applications without the need for programming expertise. 
Obtain maximum value from increasing volumes of customer and operational data. Integrated analytics allows lending professionals to select from a wide variety of lending-specific reports, easily customize the reports, and quickly apply the insight to improve lending strategy and efficiency.

 

 

 

Getting Started

defi SOLUTIONS provides configurable loan origination systems, loan management, and servicing, analytics and reporting, and a wide range of technology-enabled BPO services. Tackle the credit union technology challenges that inhibit optimum efficiency and leave you unprepared for future economic changes. Contact our team today or register for a demo.

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