Document processing automation cuts indirect lending processing time in half
Introduction
Sound Credit Union (Sound), a $2.9 billion financial institution headquartered in Tacoma, Washington, has a successful indirect lending program serving over 172,000 members and roughly $365 million in loans annually. Their commitment to serve and ability to provide a competitive loan program gave them an opportunity for growth.
However, they faced a challenge common to many lenders – as lending volume grew, their processing workflow got bogged down with manual tasks, slowing approvals. As a result, the pipeline became unmanageable. Consistent market fluctuations made their loan pipeline unpredictable and managing staff was challenging.
When their team struggled to keep up with funding, they realized it was time to find a way to work smarter and more efficiently to serve their dealer partners and members better. They turned to long-time partner, Origence, for solutions.
Sound was interested in how artificial intelligence (AI) and machine learning might impact their origination and was eager to explore this option. Origence offered a new resource through partner, Informed.IQ, to modernize their lending process using document processing automation (DPA).
The result—a modern workflow that cut their processing time in half and provided same-day funding and, in some cases, the same hour.
The challenge
Manual processing delayed fundings and impacted external relationships
The solution
Implementing AI and Machine Learning with DPA
The results
- 2,000+ loan applications submitted through DPA in the first ten weeks
- Reduced processing time by 50%
- Improved team morale and job satisfaction
“Working with Origence on the implementation process was very hands-on, very smooth. They were easy to work with and gave us best practices and great advice.”
VP of Consumer Lending
Sound Credit Union
Manual processing workflow delayed fundings and impacted relationships with dealerships and members
Sound Credit Union processed loan applications like many credit unions – gathering documentation and reviewing data from each applicant. This required their staff to sift through pay stubs, insurance documents, and other documentation to ensure underwriting and regulatory standards were met. This labor-intensive and monotonous work was time-consuming and prone to potential errors. When high application volume hit, the credit union lending team sometimes found themselves weeks behind in funding.
The credit union was in a dire situation knowing that providing timely response and funding to dealerships was essential to building relationships and keeping their service at a high level. Finding a way to work smarter, not harder, became a necessity.
“DPA has helped reduce time as far as processing and funding, helping us produce close to double the fundings that we were previously. We run really lean and mean, so for the amount of loans that get booked daily, with the amount of people we have, it’s pretty phenomenal.”
VP of Consumer Lending
Sound Credit Union
Implementing AI and machine learning with DPA
Sound Credit Union has been an Origence partner since 2005, using the arc OS indirect lending platform, CUDL, AutoSMART, and SmartFund. As a long-time partner, Sound interacted with Origence regularly, serving on the Board of Directors and their advisory committee. The credit union was aware that interactions with Origence often led to technology enhancements or opportunities to pilot new developments.
Origence launched document processing automation in 2023, and it was an easy decision for Sound to be one of the first to implement the tool as a solution to their ongoing challenges.
Already using the Origence platform, the implementation process would be a minimal lift, including a setup worksheet, weekly meetings for preparation, best practice communication, and advisement by the Origence team.
DPA would automate the manual tasks currently slowing down Sound’s processing workflow. It would classify and sort documents, verify data, and provide a loan package for the dealership to ideally provide efficiency that would solve the credit union’s lag time.
How DPA works
“If you are a credit union considering DPA as an option, do it now! It will reduce processing times and allow your team to work on relationships with dealers. Sometimes, that relationship-building process gets lost—people are busy, so they just message back and forth. That has been huge for us.”
VP of Consumer Lending
Sound Credit Union
Immediate results
In the first ten weeks following launch, Sound submitted more than 2,000 loan applications through DPA. At first, the Sound team manually double-checked files after submitting them through DPA until they were comfortable that the technology was working as it should. After two weeks, it was clear DPA was doing the job accurately and thoroughly.
With gained efficiency, Sound is able to generate more approvals in record time. However, the biggest benefit is reallocating time to dealership communications, which the credit union feels is key in today’s market.
Loan applications submitted through DPA in the first ten weeks
Reduction on processing time
Improved team morale and job satisfaction
Enhancing lending processes and practices
Document processing automation has revolutionized Sound Credit Union’s lending processes, leading to significant improvements in efficiency and staff morale.
Quantitatively, the impact of DPA at Sound is substantial. Processing time per loan has been halved from 30 minutes to just 15 minutes thanks to the automated stacking capabilities provided by DPA. This significant reduction in processing time expedited loan approvals and freed up valuable time previously spent on manual document sorting and verification – the most time-consuming tasks in their workflow. Processors now have the bandwidth to focus on higher-value tasks and strategic initiatives, including developing better relationships with the dealership team.
Apart from operational gains, the switch to DPA has also had a positive impact on staff morale. Sound Credit Union reports that team members have expressed an improvement in job satisfaction and are enjoying their work more since implementing DPA.
The success story at Sound Credit Union serves as a testament to the tangible benefits of DPA, from streamlining processes that create faster fundings to promoting collaboration and stronger dealer relationships.
About Sound Credit Union
As a Northwest original since 1940, Sound Credit Union is one of Washington State’s largest credit unions, driven by the purpose of standing with members, employees and the community through all waves of life. Sound provides authentic and trusted financial support and services with full-service branches around the Puget Sound.
Asset size: $2.9 billion
Members: 172,000
Origence products/services implemented:
Document Processing Automation
Get in touch with Origence.
Learn how document processing automation can increase staff efficiency, scale resources, and catch errors quicker, all while reducing funding times to help build better dealer relationships.
