Accelerating the Lending Process & Enhancing Member Engagement With Digital Communication

Two of the top ways credit unions can improve consumers’ experience is to improve the omnichannel experience and provide real-time messaging to help manage day-to-day finances, according to research from BAI, a nonprofit serving the financial services industry. A true omnichannel experience means that the member has a consistent experience whether they are interacting with their credit union in person, on the phone or through a digital channel. Since digital channels are some of the most common methods for applying for loans, it is vital that credit unions implement a loan platform that provides the tools needed to meet member expectations and empower employees to do their jobs at the highest level.

For credit unions, communication during the loan and account origination process is often one of the biggest challenges in delivering an outstanding experience. When staff have trouble reaching members, they experience delays in underwriting, longer times to closing and frustrated members. Likewise, members want to be able to contact their credit union when they have questions or updates, no matter what the time of day.

Digital transformation often brings up thoughts of new digital banking platforms, but one of the most effective strategies can be choosing a loan origination platform with modern digital communications capabilities. Incorporating digital communication tools can help the credit union streamline operations and improve the overall experience for staff and members.

Operational Benefits to Digital Communications

Adding digital communications tools to a credit union’s loan origination experience can help produce higher loan outputs. With deposit interest rates at their highest levels since 2001, retaining existing deposits, and securing new deposits so that credit unions have the capital to fund new loans, is a top priority for most institutions. Thus, credit unions need to make the most of every account and loan application. Automated messages, reminders and notifications can help members move efficiently through the investment and lending journey, resulting in lower abandonment rates in the origination experience.

While constant engagement is essential, it can’t be done successfully without offering more accessible solutions for members to share relevant documents. Streamlining document collection and synchronization can also help credit unions reduce the time for origination. According to Eltropy, a provider of a digital communications platform, Advantage Plus Federal Credit Union ($257 million, Pocatello, Idaho), improved their loan document collection time to an average of 33 minutes and members responded 44 times faster by leveraging their digital communication tools.

Digital communications tools can also improve staff satisfaction. Staff can work quickly and effectively by communicating with members digitally through a single, compliant dashboard. Additionally, these messaging tools can help automate authentication and fraud detection, reducing the time needed for back-and-forth communications with a member in the call center.

A centralized communications platform makes it easier for staff to address members’ needs more efficiently and be equipped with the tools to help build stronger relationships.

Enhancing Member Engagement

Members benefit from an easy-to-use tool that allows them to communicate in real-time and receive prompt support. Staff can quickly address urgent or time-sensitive matters – without requiring the member to visit the branch or call. Members want their credit unions to “meet them where they are,” whether that is on a desktop computer, a tablet or on their phone, at a time that is convenient for their lifestyle. Offering digital communications tools helps credit unions meet members when and where they are in their time of need.

In addition to convenience and real-time support, credit unions can leverage messaging tools to deliver personalized and tailored messages to members based on their preferences and past behaviors. For example, if they know a member has a new teenage driver in the family, they can reach out with offers on auto loans and educational information about local driving school or car insurance partners. This shows the credit union is deeply invested and cares about its relationships with members.

Getting Started With Digital Communications

There are a few key things any communications platform should deliver. Credit unions must first ensure the technology provider prioritizes security and compliance. Security is the key to building trust, and any communications platform must be able to protect sensitive data and authenticate members.

Because these platforms serve as a central source of communications, they must be compliant. Failing to be compliant can result in hefty fees, as seen in recent regulatory actions against banks that used WhatsApp inappropriately to bypass regulations.

These providers should enable document collection and sync it with the credit union’s loan processing platform. This allows members to upload important documents from their personal computer or mobile device and have the documents imported into the loan origination system, reducing the time and effort required to fund loans. Once the documents are collected, members should be able to e-sign, keeping the loans moving quickly to closing.

Finally, this platform should provide two-way communication, enabling staff and members to communicate. Credit unions can text their members in real-time throughout the lifecycle of the application process.

From enhancing the staff and member experience to capitalizing on loan opportunities, a loan origination system with seamless communications capabilities provides the tools needed to maximize efficiency without sacrificing member service. While lending has slowed down temporarily, volumes will pick back up. At that time, it will be too late to implement tools that can make the loan workflow more efficient. Offering an enhanced loan origination experience can help credit unions communicate more efficiently and guide members through their lending journey and beyond.

Darren Lorentz is SVP Product Management – Solution Execution for Origence in Irvine, Calif.