By Steve Maloney
Is it time for you to upgrade your loan origination system? Here are 10 reasons why a tried and true system can work for your credit union.
Speed Matters More and More
If your members are in the market for a new car, speed matters. They’ve come to expect transactions of all types will be fast. Credit unions are getting better at speeding up loan approvals, but only if the LOS makes it efficient.
Better Member Experience
As technology gets better and more accessible, member expectations get higher and higher. If you can live up to that standard, you will have loyal members who will talk about how great your credit union is, which in turn brings increased referral traffic. A modern, updated LOS can help you give members a memorable experience.
Using an outdated legacy LOS carries more risks than ever before. That’s because any mistakes could jeopardize the loan or extend the processing time. Not only that, if your members notice an error, it reflects poorly on your CU.
Do More With Less
For many businesses, the goal is to try to do more with less. However, this often comes at the expense of employees and can erode the culture. With the right LOS partner, you can have your staff do more with less and keep them and the members happy.
Every day, you hear the horror stories about financial institutions being targeted for hacking. A data breach can cost your institution – not only in time and lost productivity, but in member trust. Do not risk your good name with a vendor that does not have its own SOC certification.
Credit unions frequently invest in software to improve productivity, but they still need buy-in from the staff. Many people are resistant to change, but with the right LOS partner it is easy to get employee buy-in. Your staff will quickly see how they can do their jobs more efficiently and with fewer headaches. Training can be easy if you invest in a LOS that is intuitive and user-friendly.
There’s nothing worse for your staff than to have stacks of paper on their desks. No matter how organized people are, forms can get lost, misplaced or accidentally shredded. A good LOS manages documents in one place so employees just have to click a few buttons.
A top loan origination processing system integrates with existing systems. For example, our lending solutions can be integrated with document storage systems, form providers, insurance providers credit union core systems.
When you automate the approval process, you can easily determine if there are other products that would be beneficial to your members.
When your CU invests in a LOS, be sure to choose a package that can be tailored to your needs. You can set rules to automate the loan approval process, making it easier to get through loans. Also, you can easily customize reporting to learn the common characteristics of borrowers who are delinquent. This gives the flexibility to adjust rules and make sure you are lending to borrowers who can pay back.
Loan Origination Processing System is a Smart Investment
Investing in a loan processing system has many advantages. The end result is you will have a more profitable credit union with a better reputation. What’s not to love about that?
Now that you know why you need to have a loan origination processing system, you’ll want to start to look into getting one for your credit union. Find out what the must-have LOS platform features are before you make that investment.
Steve Maloney is president/CEO of Sync1 Systems, an Austin-based fintech CUSO providing a new generation of loan origination systems. Designed by and for credit unions toutilizing the most current technology to transform and power member lending for today’s ever-changing digital and mobile banking landscape. To learn more about its 1-Lending platform click here.