Make Applying for a Loan Easier for Your Credit Union's Members

“Credit unions originated $72.5 billion in loans during first quarter 2012.”¹

While refinancing contributed significantly toward the volume of loans, “origination activity jumped 24.7 percent versus the first quarter of 2011 as all major lending categories posted higher volume.”²

These positive statistics are refreshing news, but credit union professionals are not ones to rest on their laurels. So that news likely has some lending and marketing specialists wondering: How well did we do—and how can we improve those numbers?

One step you can take is to assess your loan application process. How easy (or cumbersome) is it for both the applicants and your staff members? How long does the process (from application to either approval or denial) typically take? Can any part of the process be streamlined? If you’re not sure, ask your members and your staff. 

Online for Ease … and Efficiency

Paper loan applications seem almost archaic, but budget constraints might make them—or a writable PDF—a necessity for some credit unions. Still, it’s worth the time to look at your budget and talk with your website provider. Chances are, your provider can build a secure application for a reasonable cost.

A secure online loan application is a good start—but when it comes to efficiency even the simplest application can’t compare with an online decisioning system. Today’s busy consumers want the option to apply online for any kind of loan, including credit cards, auto loans, and mortgages. And they want the decisions about their loan applications—whether it’s a new loan or a refinance—as soon as they can get them. (Is yesterday too soon?)

With a quality online decisioning system a member can apply for a loan anytime of the day or night—and find out if they’re qualified for it almost immediately. Naturally, the application and decisioning processes must be performed in a secure environment, so members can be confident that their personal information stays that way.

While helping your members save time, the online loan decisioning system should also help free up staff members, so they can consult with members, discern other needs they may have, and recommend products and services. 

Member Service … First and Foremost

A secure online loan decisioning system is good for business—and because it improves the experience each applicant has with your credit union, the system is also good for building stronger relationships with members or establishing a relationship with a new member. (Of course, anything you can do to help your members with their finances is good for both of you.)

With so many vendors competing for your members’ loan dollars (and even payday loan companies are promising loan decisions within minutes), you’ll want to have the advantage. Do your research, and find a secure online loan decisioning system with credit union experience. It may be just the product that helps you look back on this quarter’s loan volume and think: Let’s keep this momentum going! 

Related Services: Loan Decision+, Xpress Membership, Xpress Lite  

¹Johnson, Jay, A Pro-Consumer Movement, Callahan & Associates, Inc., June 18, 2012, http://www.creditunions.com/printerfriendly.aspx?articleid=5097, accessed July 3, 2012
²Johnson, Jay, A Pro-Consumer Movement, Callahan & Associates, Inc., June 18, 2012, http://www.creditunions.com/printerfriendly.aspx?articleid=5097, accessed July 3, 2012

Keep Credit Union Member Attention with Online Applications

The other day I was looking to sign my children up for summer camp. I clicked on the camp application button and was given a PDF to print, fill out and either fax or drop by the camp office. Now, I’m lucky enough to have easy access to a fax machine, so the process was fairly simple. But it got me thinking what an inconvenience it would be if I didn’t and had to make a special trip just to drop off my paperwork. 

It further got me thinking about all you credit unions out there and if you’re making it painless for potential members to apply for membership or current members to apply for loans on your website. How many times have you stopped doing something online because it didn’t seem worth the effort? You’re not alone, about three-quarters of online shoppers habitually abandon their shopping carts.

Playing for Keeps

Once you get potential or current members on your website don’t give them easily-avoidable reasons to leave. You’ve got their attention; they want to take the steps needed to apply for membership, loans or credit cards – so strike while the application iron is hot. Give them access to user-friendly online applications to keep their attention and keep them on your website. 

According to a Forrester Research study in American Banker this month, 37 percent of U.S. consumers who purchased financial services applied for them online in 2011. That’s a five percent increase from the year before. Take advantage of this upward trend at your credit union and offer them online applications. 

CU Solutions Group offers online application programs like Xpress Membership, Xpress Lite and Loan Decision+. Don’t let another online opportunity pass you by. Call us at 800.262.6285 or email info@cusolutionsgroup.com.