by Origence

Today’s credit union lenders are seizing the opportunity to enhance member service at every critical touchpoint. As member expectations evolve, the demand for more convenient options, such as online membership and loan applications with swift decisions, is increasing. Delivering an exceptional online member experience is crucial for the success of credit unions.

The pressure from fintech brands, economic uncertainties, and rapid technological changes present a unique opportunity for credit unions to adopt technology and provide a superior borrowing experience. Among these technological advancements, automating loan processing and decisions can be a game-changer for credit unions.

Here's how automation helps:

• Efficiency gains
  The goal is to fund more loans and make faster decisions without increasing risks. Providing loans to members who need access to affordable funds is central to the mission of credit unions. Automation facilitates this by making processes more efficient and reducing underwriting costs.
  
  
• Enhanced accuracy
  Despite initial hesitation within the credit union community, automated decision-making can enhance the quality of decisions. AI and machine learning can boost approval rates by up to 25% without escalating risks. Automation also improves accuracy, aiding in fraud detection and compliance, reducing errors, and offering a smoother experience for members.
  
  
• Reduced friction
  Automation accelerates processes and minimizes friction points. Automation can streamline funding processes for credit unions and give them the opportunity to expand their dealership relationships.

Automation helps credit unions meet the increasingly high digital expectations of members. By eliminating redundant information requests and streamlining funding processes, credit unions can strengthen dealer relationships and seize more lending opportunities. This optimization is essential in order for credit unions to remain competitive and ahead of fintech disruptors.

Implementing automation might be new for credit unions, which traditionally focus on personalized member service. However, modern automation solutions offer flexible configurations tailored to specific needs. Automated loan processing and decisioning enable quick, data-driven credit decisions. Teams can set up and fine-tune decision engines, making the review and deployment of automation easier for efficiency and accuracy.

As technology advances and more data is gathered, these automation models will continue to improve. Risk-based pricing models are already considering variations in default rates among borrowers with the same credit score. AI models can analyze vast amounts of data within seconds, identifying nuances that would take humans months to uncover.

Let’s get started

At Origence, we are committed to helping credit unions embrace automation to build an ideal, modern member experience. With best-in-class partners such as Informed.IQ, we are making document automation in lending faster and more efficient. In collaboration with Zest AI, Origence arc helps credit union lenders implement more accurate credit scoring and faster, automated decision-making.

In a rapidly changing financial landscape, automation is the path to efficiency, accuracy, and digital excellence for credit unions and their members. If you are ready to kickstart your credit union’s digital transformation, contact us today.