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Exceeding Expectations with Loan and Account Origination in One System

  • by Brit Barker
  • March 24, 2022

For credit unions looking to maximize lending efficiency while providing a great member experience, a single origination platform for both loans and accounts is the golden ticket. A single system allows credit unions to ramp up their cross-selling efforts, deliver a seamless account opening process, and eliminate the service gaps that lower net promoter scores.

Consumers Expect More

The global pandemic has altered what consumers consider good service. It must be fast, easy, and on their terms. In other words, digital. COVID-19 was a catalyst for tremendous technological growth. Many large companies met consumer demands with complete digital services. As a result, consumers now expect this level of service every time. There’s simply no going back.

Consider Amazon’s “just walk out” frictionless checkout at Whole Foods Stores. Technology has done such a great job of catering to customer expectations; it has eliminated the need for the traditional checkout. Compare this to a situation where a member must provide the same information multiple times while applying for a loan. It’s the antithesis of the “show me you know me” desire that consumers affirm with their wallets.

One example of how an all-in-one origination system improves the consumer experience is its ability to seamlessly text loan updates and process requests instead of using email or phone. Many consumers prefer texting and respond faster to this form of communication than emails, rewarding themselves and our lending partners with a faster closing.

Another example is the ability for members to receive a credit card offer when opening a new account. Not only is it a smart and seamless strategy to encourage loan growth, but the member also sees this as a positive experience with the power to build a long-term relationship.

Employees Expect More

A complex network of systems might give the appearance of efficiency to your customers. Still, if employees must perform operational miracles on the back end to keep up the facade, it’s a shaky foundation for success.

Every lender aiming for digital loan growth must take the time to review all policies, procedures, and processes to uncover pain points that limit staff efficiency. Often, we find strategies still in place for legal or regulatory requirements that no longer exist or the duplication of compliance checks to satisfy two systems. It’s essential to understand why friction exists and strip it out instead of unnecessarily shifting the load to your staff. Naturally, this step is much easier when using a single system.

Back office operational efficiency is a gift that keeps on giving. These efficiencies benefit members who want a modern experience, as well as employees who find it easier to close loans quicker. These positive operational experiences power each other.

Regulators Expect More

Most of our lives have moved online, and not surprisingly, cybercriminals have followed. According to data from Allstate Identity Protection, fraudulent new loan accounts grew by 61% from 2020 to 2021 and accounted for more than half of the firm’s identity theft claims. In Q4 2021, fraudulent loan applications represented 42% of all ID theft cases.

A single platform system can provide multifactor fraud protection and access to a vast network of best-in-class security applications. These security functions can be configured to meet your organization’s needs. This is one area where saving money with a “bolted-on” legacy system doesn’t pay.

Credit unions have an increasing array of solutions available to digitize operations. The key is to create a tech stack that builds efficiencies, not makes things more complex. As the world relies more on digital systems, lenders must provide modern origination solutions that satisfy everyone’s expectations.

The Origence Loan and Account Origination Platform has led this movement for a decade through constant evolution and now includes origination for auto loans, auto refinances, credit cards, indirect loans, home equity, and deposit account opening.

Click here to learn more about the difference Origence can make in your institution.

Brit Barker, Origence’s senior vice president, enterprise solutions, is an experienced sales and product executive with 20 years of helping financial institutions improve their lending performance and exceed consumer needs. He’s recognized as an industry leader with innate talent in balancing strategic focus with operational execution. Brit is an authority on consumer, mortgage and indirect lending, with expertise in facilitating the transition of new clients into the financial lending market, and enhancing lending programs.

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