By Carly Peroutka
In today’s market, credit unions need to ensure they’re staying competitive. In a world accustomed to fast-paced interactions and transactions, members expect a similar lending experience. Today’s members want the ability to prove their financial stability, receive faster decisions, and experience greater transparency, even if their traditional credit file might imply otherwise.
Credit unions should consider the following ideas in order to ensure that they are offering the experience and solutions members have come to expect:
One of the most significant and transformational trends is the demand for the modernization and digitalization of the entire lending process. As members have become more comfortable with and accustomed to digital transactions that are fast-paced, seamless and provide instant results, they expect a similar experience from their financial institution, especially when it comes to lending. While addressing members’ digitalization demands can seem like an overwhelming endeavor for credit unions, the technology and data needed to meet these growing borrower expectations and stay on par with industry trends are readily available.
Credit unions, like many in the lending industry, are working to achieve broader financial inclusion to better serve a diverse mix of borrowers in ways that help meet their unique circumstances. Credit unions are realizing the value of seeing people for more than their credit score and are benefitting from leveraging multiple data sets, such as traditional credit data layered with verified income and employment data, for thin-file clients. This approach can give credit unions a more comprehensive view of risk, help them make more informed decisions and potentially approve more loans.
While there’s a push for faster information, there’s an equal push for making less risky decisions on the lender side. This can be challenging for lenders, especially since individuals needing credit may be looking to receive a loan immediately. By using digital and secure third-party data to verify income and employment information, credit unions may lessen the possibility of manual error, increase operational efficiencies, and better limit risks. In addition to providing excellent customer service, The Work Number® creates a faster path to revenue for lenders through its automated income and employment verification solutions.
Today, consumers conduct transactions in-person, over the phone and online. While each consumer has their preferred method of how to interact with their financial institution, they all have one thing in common – they want a stress-free experience. Credit unions would be prudent to invest in solutions that help improve the borrowing experience for all members. For example, by establishing partnerships with third-party innovators that can offer automated income and employment verifications that can help accelerate the lending process. And, having solutions in place that simultaneously serve both the digital and in-person member may reduce the need for long, drawn-out paper-based processes or requests for sensitive banking log-in credentials. Simplifying as many steps for both the financial institution and the member can drive efficiency, improve member engagement and experiences, and ultimately, possibly even increase revenue.
While most consumers may demand a fast, easy digital lending process, many still prefer a personal touch to the process. The most successful institutions work to balance their in-person interactions with technology in order to meet their members’ expectations of speed and convenience, all while delivering a positive member experience. This requires obtaining and utilizing the right technology solutions with a variety of delivery options.
Meeting the needs of today’s members while continuing to attract new ones can be challenging given the expectations and unique circumstances of each individual member. Credit unions that can offer a digital lending process that attracts borrowers, regardless of their credit file, from across every generation, as well as provide exceptional human interaction and personal experiences, will likely see the most success.
Connect with us to learn more or download our infographic on three ways cloud-based technology can help serve both digital and traditional members.