small business loan servicing solutions

3 CREDIT UNION TECHNOLOGY CHALLENGES

The defi Team Credit Unions, defi INSIGHT, Originations, Simplifying Processes

graphical representation of credit union technology challenges

As economic predictions fluctuate, credit unions face a crucial juncture to invest in strategic technology solutions. By addressing credit union technology challenges, they can seize current opportunities and fortify themselves for potential downturns. This article explores the top three challenges credit unions face and highlights innovative solutions to overcome them.

Challenge 1: Lack of Agility in IT Deployment

Deploying IT resources and services to meet dynamic processing demands poses a significant challenge for credit unions. However, cloud technology offers a transformative solution. By adopting a cloud foundation, credit unions can swiftly implement and scale IT infrastructure based on changing requirements. 

Key advantages of the cloud foundation include:

  • Reduced capital and operational expenditures 
  • Seamless integration with innovative capabilities 
  • Frequent software updates
  • The ability to expand services to new geographies without major IT investments

Cloud technologies empower credit unions with greater agility, cost-effectiveness, and adaptability to evolving economic cycles.

Challenge 2: Rapid Application Implementation and Customization

Credit unions often struggle with implementing new applications or customizing existing ones to cater to evolving market needs. However, configuration-based solutions provide a powerful alternative to traditional programming. Loan origination software solutions that emphasize configuration allow credit unions to modify user interfaces, workflows, decision rules, credit policies, and more. 

Through intuitive menus, business users can create and modify loan origination processes that align with their unique practices and respond quickly to market changes. Configuration not only empowers credit unions with customization capabilities but also ensures an auditable record of changes, which is crucial for regulatory compliance.

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

Challenge 3: Maximizing Value from Data Insights

The growing volumes of data generated by transactions and customer interactions present immense untapped potential. To unlock this value, credit unions need integrated analytics capabilities. While some credit unions turn to third-party tools, it often requires specialized skills and resources. Integrated analytics within a loan origination solution offer a more seamless and efficient approach. Lending professionals gain access to a wide range of pre-defined reports and the flexibility to customize them to suit their unique reporting requirements. Automated scheduling and easy sharing of reports facilitate collaborative decision-making, empowering credit unions to enhance lending strategies, optimize operations, and drive efficiency. Data insight tools help solve many credit union technology challenges.

Addressing the Challenges: Innovative Solutions by defi SOLUTIONS

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

ChallengeAnswer
Agility in deploying IT resources and servicesCloud 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 demandsA 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 dataIntegrated analytics allows lending professionals to select from a wide variety of lending-specific reports, easily customize the reports, and apply insights for improved lending strategy and efficiency.

If you are looking for an industry-leading credit union software provider for loan origination and servicing firmly grounded in risk management best practices, look no further than defi SOLUTIONS. Our defi MANAGED SERVICING provides a single hub, digital interactions, and intelligent virtual assistants to bring everything together and help solve your credit union technology challenges.

With defi MANAGED SERVICES, you can ramp up a new or beef up your existing back office operation with white-label, outsourcing services for:

  • Inbound call handling and fulfillment.
  • Return mail processing.
  • Payment processing.
  • Collateral management title work.
  • Accounting.
  • Cash management.
  • Back-office payment processing.
  • Default management (collections, bankruptcy, repossessions, recovery).
  • Lease maturity management.
  • Remarketing.

defi MANAGED SERVICING uses artificial intelligence (AI) and Contact Center as a Service to boost operations and processes related to auto loans, leases, and leased vehicle dispositions, reducing budgetary expenses and improving customer service.

Getting Started

defi SOLUTIONS is redefining loan origination with end-to-end software solutions that enable lenders to automate, streamline, and deliver. Borrowers want a quick turnaround on their loan applications, and lenders want quick decisions that satisfy borrowers and hold up under scrutiny. With defi MANAGED SERVICING, lenders can improve operations and processes related to auto loan servicing, leases, and the disposition of leased vehicles, cutting expenses through automation and outsourcing services. For more information on what to look for when considering auto loan servicing for credit union portfolios and how we can help,  contact our team today and learn how our cloud-based loan origination products can transform your business.

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