Today’s most successful credit unions are discovering innovative ways to thrive. While the traditional in-house lending model has long been a cornerstone of personal member service and cost management, the evolving economic landscape is inspiring a fresh approach. Embracing strategic outsourcing not only helps meet member needs but also unlocks new levels of efficiency and productivity, paving the way for a brighter future.
Addressing staffing challenges
Staffing has always been a significant hurdle for credit union lenders, and recent times have exacerbated these issues. A report from Cornerstone Advisors highlights that 50% of financial institutions struggle with staff recruitment and retention, while 31% face recruiting difficulties despite stable retention rates. These challenges make outsourcing an attractive option.
Outsourcing offers a solution to the cyclical nature of staffing needs. Staffing up to handle peak volumes is not cost-effective when volume declines. On the opposite side of that, maintaining lean staffing levels can compromise service levels when volume spikes and leads to overburdened staff. An outsourcing partner provides a flexible resource to manage these fluctuations, preventing employee burnout and turnover. Moreover, outsourcing addresses retention challenges. Medical leave, vacations, and other disruptions can leave credit unions short-staffed. An outsourcing partner can help ensure seamless, consistent operations regardless of internal coverage.
Enhancing high-quality member service
Outsourcing time-consuming lending tasks can empower internal staff to place their focus on member service, the cornerstone of credit union operations. External partners who understand credit union expectations can enhance member experiences and support service commitments. Additionally, 24/7 support for tasks like underwriting and loan processing boosts efficiency and productivity, enabling internal staff to cross-sell products and build stronger member relationships, which is crucial for growth.
Embracing Technological Advancements
Implementing new technology updates requires significant resources, often leading to a backlog of tech debt. Implementing progressive capabilities such as Artificial Intelligence and Document Processing Automation can be costly, but outsourced solutions frequently incorporate these advancements into their core offerings. This not only enhances member experience but also ensures credit unions remain competitive.
Outsourcing parts or all lending operations is a strategic move that aligns with credit unions’ core principles — delivering exceptional member experiences. By leveraging external partners and integrating technological efficiencies, credit unions can navigate staffing fluctuations, borrower needs, and technological advancements with agility. Ultimately, outsourcing helps credit union lenders meet and exceed member expectations, laying a solid foundation for future growth.
