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08/29/2024 | News release | Distributed by Public on 08/29/2024 14:03
Banking Transformed: A Credit Union’s Journey to Efficient, Personalized Lending
The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your own advisors with questions regarding how a bank transformed itself using proper loan origination software. Opinions expressed in this article are of the individual authors and may not reflect the opinions of MeridianLink, Inc.
In this special eight-part series of the Banking Transformed podcast - recorded at MeridianLink® LIVE! and featuring MeridianLink® customers - industry leaders discuss their journeys, strategies, and lessons learned along their unique paths to digital growth with loan origination software.
On this episode of the Banking Transformed podcast, Generations Federal Credit Union (Generations FCU) Vice President of Consumer Lending Kate Himes shared her credit union's journey to greater lending efficiency and member-centric service.
Reflecting on her role, Kate notes, "I took over the lending division for Generations and fell in love with originating loans for members. It's a great opportunity to use my past experience in collections to really be able to identify where true risks are, but also, more importantly, identify how to help members, where to help members, and then use a great "loan origination system (LOS) like MeridianLink® to put that into action."
Generations FCU's overarching goal is to be "easy to do business with." In consumer lending, this translated to eliminating unnecessary barriers for members. To do this with loan origination software, it needed to identify as many lending opportunities as possible while avoiding undue risk - all within a fast, frictionless experience.
Managing Risk
Risk management strategy with key actions highlighted for efficient credit union lending using proper loan origination software.
When it comes to risk management, Generations FCU takes a proactive approach with their loan origination software.
Kate says, "We know that there are members out there who are looking for products and services and are well-paying members but may have had a challenge in the past. And we have an opportunity to tap into that."
A key part of this approach involves analyzing declined loan applications. Kate emphasizes the importance of understanding why certain loans are being declined: "What loans are you declining? Why are you declining them? What product, what tier? And what opportunities are hidden in those declines that can be turned into approvals?"
Generations FCU uses this data-driven insight to refine its instant decisioning process. The credit union tweaks criteria, identifying initially risky applications that, upon review, can move into funding.
This improves lending decision accuracy and paves the way for innovative solutions using loan origination software.
Lifting Barriers to Lending
A prime example of this innovation is the credit union's no-touch, instant funding personal loan. For qualified applicants, this loan can be completed with funds released in as little as 10 - 15 minutes.
This streamlined lending experience is powered by the MeridianLink® One platform, leveraging its advanced automations, configurable workflows, robust analytics, and marketplace integrations to create a frictionless process from application to funding.
This technology also allows Generations FCU to take a more nuanced approach to consumer loans for those who don't immediately qualify for its no-touch option: applicants who don't receive instant approval are then transferred to another queue in which loan officers can review their circumstances and work toward filling in any gaps preventing approval, if possible.
This has helped the institution boost its consumer lending portfolio while building goodwill by creating more member opportunities.
Digital Progression
Transitioning to a more digital, automated lending process was not just about converting paper forms into PDFs. This involved reviewing the entire process, identifying inefficiencies, and streamlining operations with loan origination software.
After mapping out the entire lending workflow, Kate explains the next step was to identify opportunities for automation. The team examined where queue automations, filters, and automated actions could be implemented to reduce manual intervention and accelerate workflows.
After implementing these automations, the focus shifted to gathering feedback from the frontlines who interact directly with members to understand where they were still encountering friction.
Efficiency is Universal
Credit union team discussing efficient and personalized lending strategies to correctly utilize loan origination software.
When employees are fully engaged and grasp their processes, member engagement naturally thrives. As Kate Himes puts it, "Efficiency is universal. If I make a process efficient for [the member], it's also efficient for the employee."
Kate emphasizes, "I want the system, MeridianLink, to work hard. I want my employees to do the magic. I want my employees to product fit and say, sounds like you came to me with a credit card need, but you actually want a personal loan."
Thanks to the streamlined workflows, Generations FCU's employees are less bogged down by tedious tasks and can work smarter - focusing on critical, relationship-building member interactions.
By integrating advanced technology with a deep understanding of member needs, Generations FCU enhances both operational efficiency and member satisfaction, creating a win-win scenario for everyone involved with loan origination software.
Listen to the full episode below to learn more about Generations FCU's lending journey and important lessons along the way.
Watch the Full Podcast Here