How would you describe your credit union’s loan origination process? Fast, easy, simple, and a competitive advantage? Or is it slow, cumbersome, confusing, and outdated? If your process is more of the latter than the former and you want to grow your lending portfolio, the right credit union lending software can simplify the loan origination process and set your organization back on the growth path.
How Credit Union Lending Software Optimizes the Loan Origination Process
In the traditional loan origination process, every step is manually managed by a team member, from the intake of member applications to the final notification of approval or rejection:
Having credit union lending software available allows credit unions to streamline the loan origination process, minimizing the manual work done by employees through automating various processes.
Teammembers working with credit union lending software only need to ensure that processes are working as designed, effectively making the loan origination process more about applying their personal knowledge of member relationships than of data entry.
The Main Benefits of Credit Union Lending Software
Three high-level capabilities characterize a simplified loan origination process:
- Initiate loan applications anywhere, anytime
- Easily provide applicant information
- Rapidly respond to loan applications
The latest innovative technologies that support mobile applications, optimized user experience, and rapid lending decisions support each capability.
#1 Initiate Loan Applications Anywhere, Anytime
Modern consumers expect mobile service. Your credit union lending software should be simple and consistent regardless of the device used, allowing prospective borrowers to apply for a car, truck, motorcycle, boat, or RV via a mobile device a minute before they set foot on the lot or in the comfort of a home office. Applicants should be able to initiate and complete a loan application in minutes.
“Applicants should be able to initiate and complete a loan application in minutes.”
#2 Easily Provide Applicant Information
The convenience of initiating an application needs to be reinforced by a process that makes entering applicant information as easy as possible. Configurable menus (no programming required) allow lending professionals to create a user interface that smoothly guides applicants through the process using:
- What-you-see-is-what-you-get (WYSIWYG) development that immediately renders the location of text, fields, buttons, and images in the user interface to facilitate rapid application development
- Testing on simulated mobile devices and desktop environments to ensure a smooth, intuitive user experience
- Conditional logic that displays prompts and fields based on application type or previously entered data to optimize data entry
- Data validation rules that minimize incorrect data entries
- Capture capabilities that facilitate paperless submission of required documentation, such as driver’s license or pay stub
A well-designed user experience facilitates easy data entry and application submission and creates a favorable impression of the credit union. Rapidly developing, testing, and modifying the user interface allows a credit union to continually improve one of the most important aspects of the loan origination process.
#3 Rapidly Respond to Loan Applications
Credit union lending software provides rapid loan processing capabilities that optimize loan origination for credit unions of all sizes:
Modern loan origination solutions employ technologies and services that automate much of the decision process and, in the best cases, match applicant credentials to credit policies to deliver a response in seconds. Rapid response to loan applications is enabled by:
- Completely digital loan applications
- Automated route applications and eliminate time-consuming manual processes
- Consistent application of credit policies
- Auto-structuring algorithms that systematically modify credit terms with adjustable goals
- Cloud-based lending services such as:
- Alternative data sources
- Employment and income verification
- Vehicle valuation
- Risk-based pricing that aid in decisioning and offering competitive terms
- Digital provision of loan documents and capture signatures
Simplifying the loan origination process requires software that supports mobile and desktop devices, is easily configurable, and incorporates capabilities and services that automate and accelerate lending decisions.
Cloud-Based Credit Union Lending Software
Unlike older loan origination solutions that likely involved protracted implementation and a significant amount of custom programming to support a credit union’s lending needs, modern cloud-based loan origination solutions can be deployed far more quickly.
Configuration menus eliminate the need for programming and allow lending professionals to quickly create loan origination processes that simplify application submission, evaluation, and response. As a result, a credit union can significantly improve its ability to capture loans. For credit unions, greater simplicity in loan origination can positively impact profitability.
“For credit unions, greater simplicity in loan origination can positively impact profitability.”
defi SOLUTIONS’ loan origination systems enable credit unions to simplify the loan origination process with cutting-edge solutions, such as:
| Key Features of Defi Loan Origination Systems | |
|---|---|
| Scalable cloud-based platform | Built-in APIs and quick integrations with third-parties |
| Automated underwriting, decisioning, deal structuring, and funding | Data analytics capabilities |
| No-code configuration for workflows, rules, policies, features, and admin functions | Fully integrated mobile apps |
| Customer-facing portals and other customer service tech | Support for advanced features like AI and machine learning |
| Support of complex pricing matrices | Quick implementation of business decisions |
Getting Started
Credit unions are increasingly turning to digital solutions as member behaviors have changed over time, with increased expectations and a growing demand for mobile services. If you are interested in optimizing your loan origination process, reach out to our team using the links below to learn more about what defi SOLUTIONS can do for you.
defi SOLUTIONS is redefining loan origination with software solutions and services that enable lenders to automate, streamline, and deliver on their complete end-to-end lending lifecycle. Borrowers want a quick turnaround on their loan applications, and lenders want quick decisions that satisfy borrowers and hold up under scrutiny. With defi’s originations solutions, lenders can increase revenue and productivity through automation, configuration, and integrations and incorporate data and services that meet unique needs. For more information on the loan origination process for credit unions, contact our team today and learn how our cloud-based loan origination products can transform your business.
