3 reasons credit unions should modernize their lending processes
Credit unions strive to provide exceptional services to their members, whether it’s home loans, auto loans, or personal lines of credit. The efficiency and streamlining of processes play a crucial role in enhancing the overall member experience, be it in-branch or digitally.
While credit unions may utilize an origination solution, many are not specifically tailored to small business lending. Datos Insights’ report “Funds, Debt, and Tiers: How SMB Lending Gets Done” revealed that 47% of small business lenders surveyed utilized an origination solution originally designed for commercial loan origination for their small business lending. Many credit unions rely on either a retail solution that lacks essential capabilities and workflow support, or a complex corporate client platform. But every small business is unique, so credit unions should offer customized services that cater to diverse needs.
By modernizing your lending solution, not only will your staff benefit from the cost and time savings, but your members will also enjoy a truly customized experience. Here are three ways they’ll benefit:
Meeting the diverse needs of small businesses: Credit unions, unlike large financial institutions, frequently cater to a diverse array of small businesses, each presenting unique needs and challenges. Whether it’s a local coffee shop or a growing tech firm, the lending process cannot be approached with a one-size-fits-all mentality. Credit unions must ensure a seamless member experience throughout the lending journey, whether in-branch or digitally. Customization is key here, and modernizing lending processes helps credit unions meet these diverse needs more effectively.
Integrating disparate systems: Credit unions often encounter the obstacle of integrating disparate systems, which can hinder innovation. Modernizing the lending process offers a solution by consolidating data from disparate systems, streamlining technology providers, and simplifying vendor management requirements. Not only does this lead to cost savings, it also provides a comprehensive view of members’ relationships in one place, making structuring and managing credit and non-credit deals and products much simpler.
Enhancing the lending experience for small business owners: Automation doesn’t just impact the credit union staff. The biggest impact is on the small business owners those credit unions serve. The lending process can be stressful for small business owners, particularly when they have to navigate complex corporate platforms or inadequate retail solutions. Modernizing the lending process helps credit unions simplify and enhance the loan application and origination process. This not only benefits credit union staff but also significantly improves the experience for small business owners. Moreover, automation and modernization enable credit unions to leverage their deep understanding of their members and local economic landscape to customize loans that meet the unique needs of their members.
By investing the time to foster robust and trusted relationships, credit unions glean critical insights into their members’ future goals and can more efficiently customize loans that meet the unique needs of their members.
As technology advances, it’s essential for credit unions to stay ahead of the curve and provide unique services for their members. A single lending platform can help you modernize the loan onboarding and origination process across your front, middle and back offices swiftly and cost-effectively, ensuring you see benefits faster.
