3 essential elements of digital progression
People, data, and technology. These elements are the key to transforming how credit unions serve their members and grow their business. Two credit unions that show this in action are Fortera Credit Union (Fortera) and A+ Federal Credit Union (A+ FCU).
Both Fortera and A+ FCU have embarked on ambitious journeys to modernize their operations and meet the evolving expectations of their members. Their stories, featured on the Banking Transformed Podcast series recorded at MeridianLink® LIVE!, demonstrate how strategic partnerships and innovative thinking can lead to significant advancements in growth and member satisfaction.
At the heart of these successes are three essential elements: people, who drive the demand for change at an accelerated rate; data, which has the unparalleled capability to reach the right person at the right time with the right message; and technology, serving as the connector.
People + technology
“Challenge the status quo. Be flexible, adapt, and evolve.” Fortera Credit Union’s Chief Lending Officer Tim Wheeler says this mindset, combined with advanced technology, has propelled the credit union toward significant growth and member retention.
While the benefits are clear and the necessity inevitable, digital progression is not without its challenges. Internally, it requires changes to how employees perform their jobs, which can be uncomfortable, and many financial institutions struggle with fragmentation of systems and data silos. However, with the support of visionary leaders and a culture of innovation, these problems can be solved, leading to better processes and more satisfied members.
For A+ FCU, the challenge was using six different loan origination systems, which made the application process inconsistent and varied for different products and channels. Amber Isaku, VP of Lending at A+ Federal Credit Union (A+ FCU), shares how they solved this problem by integrating everything for consumer, mortgage, and indirect lending into one comprehensive platform. “It eliminated a lot of barriers between processes and data that we faced before, and that opened up a lot of possibilities for us.”
Wheeler reveals that Fortera’s biggest undertaking was removing obstacles in the consumer-facing workflow. So, they went through an intensive process of evaluating every step in their workflows. “We examined what the borrower needed to do to proceed with a lending transaction and what could be automated. Throughout the follow-up process, where are the hold-ups? Are the same rules applicable to all borrowers?”
By carefully analyzing these processes, they identified what could be automated and simplified. This self-examination, followed by the implementation of an inclusive digital platform for loan and deposit account origination, resulted in a process where members could easily and quickly manage their applications from their preferred devices and have clear expectations on the next steps, improving their overall experience.
People + data + technology
Imagine logging into your online banking platform and being greeted with tailored offers and suggestions perfectly aligned with your financial journey. This vision of “my credit union knows me better than I know myself” is where Amber sees the future heading. Beyond making processes more efficient, A+ FCU plans to use data to proactively anticipate member needs. The goal is not just to provide products but to cultivate lasting relationships through personalized, intuitive banking experiences. Amber explains, “We have so much data that we can tap into. We’re still in the early stages of exploring what we can do with that, but we are using it for member outreach and marketing campaigns to drive interest and present offers that are personalized.”
Fortera’s digital progress has enabled it to build a competitive model that is responsive to member needs. By using data analytics and AI-enabled tools, they can offer personalized financial guidance and products, assist members through major life events, and foster long-term relationships. Tim describes this relationship as “being there as a trusted source of support, offering the next best product tailored to the member’s needs.”
What digital progress looks like
Fortera’s commitment to a frictionless lending process has yielded impressive results. Their loan application process now takes about 5 minutes, with most loans funded within a day. Deposit applications are completed in under 5 minutes. This efficiency has not only improved member satisfaction but also led to a 20% increase in pre-qualified cross-sell activity.
Balancing speed, security, and compliance is no small feat, but A+ FCU has managed to achieve this with the help of trusted partners. Advanced decisioning capabilities helped A+ FCU improve the experience of its members and indirect lending partners by delivering decisions on some loans in just a few minutes. And a robust API allows them to seamlessly integrate solutions that blend robust security measures with user-friendly experiences.
The success stories of both Fortera Credit Union and A+ FCU show a key theme: how people, data, and technology work together. By embracing change, leveraging advanced technology, and focusing on member needs, they have set a benchmark for efficiency and innovation.
Wondering how your credit union can operationalize digital transformation, paving the way for greater growth and member satisfaction? Check out our Digital Progression Model here.
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The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your own advisors with questions regarding the content herein. The opinions expressed in this article are the opinions of the individual authors and may not reflect the opinions of MeridianLink, Inc.
