Is Technology Sprawl Ruining Your Member Lending Experience? (Part 2 of 2)

by Brit Barker
Is Technology Sprawl Ruining Your Member Lending Experience? (Part 2 of 2)

Technology has expanded our ability to do more things with greater ease, but has it really made us, as lenders, more efficient?

In part one of our two-part article series, we discussed in detail the four ways to effectively fight lending technology sprawl. Now, let’s look at the keys to implementing the right loan origination system to ensure that your credit union’s performance and ROI expectations are met.

What you should expect from your LOS

Comparing systems can be an overwhelming process. Before beginning your search, setting a performance baseline will help you narrow potential vendors to just those that meet your needs. The following performance capabilities should be top of mind when deciding on a new LOS. CU Direct’s Lending 360 LOS performance dynamics for each category are also noted.

Fast implementation
Successful implementations take time, but every month you operate on your old system, you’re leaving money on the table and not producing income. Lending 360 implementation requires 25 meetings with our implementation team to be taken at the credit union’s cadence of weekly, 2x weekly or every other week, and is then fully operational.

Vendors that promise significantly shorter implementation times might not be fully integrated with other systems. Longer implementation times may hamper your credit union’s ability to meet its growth goals. Conduct your due diligence and seek feedback from credit union colleagues who have converted to the systems you’re considering. A discrepancy between what the vendor promises and what your colleagues report, should be viewed as a red flag.

In a new CU Direct case study, Lending 360 helped a credit union successfully execute its new omni-channel strategy and experience immediate results, doubling loans funded through the system in its first month upon implementation.

Increased automatic decisions
A modern LOS must have the ability to collect an application, move to a system decision of approved or denied, and book the loan in a matter of minutes or less. This recent case study notes how Lending 360 increased one credit union’s automatic process approval from 10% to 35%.

Successful pre-approval campaigns
Your LOS should have the ability to grow loans by uploading member files with approved information, allowing staff to search by social security number to easily process the loan request. Gone are the days when members need to wait for approval and lending managers speculate if pre-approvals are being priced correctly.

Lending 360 helped one client credit union book almost $1 million in new Visa balances as a result of a pre-approval campaign, while at the same time saving 500 work-hours, thanks to improved approval efficiencies.

Cross-sell opportunities
Your LOS needs to provide an opportunity to cross sell other lending products as part of the loan process. In this case study, a credit union received at least one cross-sell offer for 40% of its loans that were either approved or counter offered through Lending 360.

Implementing the Right LOS Solution
To provide a truly positive member experience and win staff support, a credit union’s LOS must reduce technology sprawl. Make sure the solutions you’re considering meet these three minimum requirements:

• It must fully implement with numerous systems, not just your core
• It must provide an enriched member experience, and
• It must increase operational efficiency.

And, to ensure your capital investment contributes to all of your organization goals, an LOS must also build a strong foundation for the future, growing members and loans with a robust account origination feature.

About the Author

Brit Barker