Future-proofing lending: Tackling staffing challenges and discovering growth opportunities

Maintaining a seamless lending workflow is essential for member satisfaction and operational efficiency. However, disruptions can significantly impact the lending process. Credit unions nationwide are turning to outsourcing for the support they need with a partner they can count on.

For TwinStar Credit Union, the solution has been leveraging Origence Lending Services since 2022. This partnership has allowed them to navigate staffing challenges, manage unpredictable loan volumes, and streamline their processes, ensuring they remain resilient and efficient.

As you look to enhance business continuity, manage growth, and explore new markets, have you considered how an outsourcing partner might impact your credit union to strengthen and future-proof your lending operations?

Enhancing business continuity

Your lending workflow works like a well-oiled machine. When circumstances are optimal, the origination process flows well. Members are happy, and your team is satisfied. However, when disruptions hit, they clog the origination process and cause significant delays that frustrate staff and break down the dealer relationship. Lenders need strong relationships with dealers to encourage the flow of loans. If funding slows or dealers feel they aren’t prioritized, they won’t send loans to that lender.

For example, staffing changes can add considerable stress to your lending department. Whether it’s when holidays or summer vacations are in full swing and staffing becomes low, or the departure of a staff member leaves a gap, your team becomes stressed with added volume. They make mistakes, and ultimately, members pay the price. Other circumstances, such as weather events, are completely unanticipated and can close a branch without notice, leaving borrowers and dealers unassisted when they may need it most.

Choosing to outsource lending support, TwinStar Credit Union has smoothed out changes in staffing and capabilities. They no longer evaluate the number of full-time employees based on the shifts in volume or capacity, and they rest easy knowing that unplanned absences from staff no longer cause poor member experiences.

“Although we felt we had staffed our department appropriately for the new loan volume, we quickly discovered that we needed a better continuity plan. We also realized that we could benefit from streamlining the audit process with the goal of increasing capacity and efficiency,” said Lyla Elliott, CUDE, CCM, director of consumer loan production at TwinStar Credit Union.

Managing increases in loan volume and reduce risk

Lending has always been and always will be an unpredictable market. A quick shift in rates can cause unexpected loan spikes. When loan volumes surpass usual levels, your team can become easily overwhelmed. You risk not fulfilling member expectations or losing out on business due to an overwhelmed team.

While interest rates have remained steady over the past year, the Federal Reserve has projected the possibility of a three-quarter-point cut by the end of the year. Lower interest rates should increase applications, and some credit unions may be unprepared for the changes. When loan volumes exploded in 2022, many credit unions were unprepared to handle the volume of loans.

TwinStar Credit Union has streamlined their processes with Origence Lending Services and redirected their focus by providing personalized support to members. They have increased their processing efficiency dramatically. By implementing both stacking and validation services from Origence Lending Services, they decreased their processing turn times by 67%.

Expanding into new markets

If you are considering market growth into new verticals, you must also consider the staffing challenges you will face. Do you have the expertise and the experience to enter this market? Can you handle the added volume? Do you have the resources to train, implement, and manage the expansion?

An outsourced lending team with expertise in many different industries can immediately and confidently assist a new lending vertical. Many credit unions have branched into auto leasing, while others are capitalizing on the fast-growing EV market. Some are offering retail merchant financing opportunities to help members with large purchases. In each case, the stress of the new venture impacts your ability to maintain your current team and penetrate the new market with the needed expertise to grow your business.

Lending is an ever-changing environment. The ability to adapt and maintain continuity is crucial to deliver the member experiences you want and achieve sustainable growth. How prepared is your credit union to adjust to change? How might you achieve and sustain lending growth? Consider how outsourcing solutions can support your goals.

Origence Lending Services offers comprehensive solutions that address staffing challenges, manage fluctuations in loan volumes, and support expansion into new markets. As an extension of your credit union, Origence Lending Services can assist with scaling underwriting services, document organization, adverse action and welcome letters, and other vital lending processes.

By partnering with Origence Lending Services, credit unions like TwinStar Credit Union have not only enhanced their operational efficiency but also secured their capacity to manage uncertainties and capitalize on new opportunities. As the industry evolves, leveraging the expertise and resources of Origence Lending Services will be essential for credit unions to thrive and continue serving their members effectively.

More than 150 other credit unions nationwide are already finding the support from Origence Lending Services vital to their success. Contact us today to learn more about how we can assist your team and the impact it will have on your credit union.

 

Bob Nealon is the vice president of business development at Origence. He oversees sales and product development activities for Origence Lending Services, including FI Connect. Bob has more than 36 years of experience in automotive lending, sales, lending operations, collections and servicing, credit unions, technology, and insurance products.