THE RIGHT SOFTWARE CAN SIMPLIFY THE LOAN ORIGINATION PROCESS FOR CREDIT UNIONS

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 Or is it slow, cumbersome, confusing, and outdated?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 software can simplify the loan origination process for credit unions and set your organization back on the growth path.

What A Simplified Loan Origination Process for Credit Unions Looks Like

Three high-level capabilities characterize a simplified loan origination process:

1. An anytime, anywhere ability to initiate a loan application;
2. Ease of providing applicant information; and
3. Rapid response to loan applications.

The latest innovative technologies that support mobile applications, optimized user experience, and rapid lending decisions support each capability.

#1 Anytime, Anywhere Loan Applications

Today, consumers expect to transact business easily from a mobile device. A loan application should be simple and consistent regardless of the device used, allowing prospective borrowers to apply for a car, truck, motorcycle, boat, or recreation vehicle 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.

#2 Ease of Providing 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:

• 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; and
• 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 a loan origination process.

#3 Rapid Response to Loan Applications

Equally crucial to the ease of submitting a loan application is the speed of decisioning. 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; 
• Workflows that automatically route applications and eliminate time-consuming manual processes;
• Decision rules that consistently and quickly apply credit policies without the need for underwriter engagement;  
• Auto-structuring algorithms that systematically modify credit terms with the goal of auto-approving or conditionally approving applications that initially failed credit policies;
• Cloud-based lending services such as alternative data sources, employment and income verification, vehicle valuation, and risk-based pricing that aid in decisioning and offering competitive terms; and
• eContract and eSignature capabilities to digitally provide loan documents and capture signatures, eliminating delays associated with paper.

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 Helps Simplify Loan Origination Process for Credit Unions

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.

defi SOLUTIONS’ loan origination systems enable credit unions to simply 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

The benefits of industry-leading loan origination systems like defi are clear. So let’s talk about what you need.