Streamlining success: The power of automation

Explore how automation enhances member experience and operational efficiency for credit unions in the evolving financial landscape.

In the rapidly evolving financial landscape, credit unions are under increasing pressure to deliver their members a seamless, efficient, and digital-first experience. As customer expectations shift towards instant gratification, the ability to complete membership or lending applications online and receive immediate decisions has become a critical differentiator.

Credit unions are uniquely positioned to leverage their member-centric approach while adopting cutting-edge technologies. The tension of digital innovations, economic fluctuations, and technological advancements are pushing lenders, like credit unions, towards automation. Automating loan processing and decisioning is a solution that offers substantial benefits.

Three key advantages of automation:

1. Increased efficiency: Automation streamlines loan processing, enabling credit unions to fund more loans and make quicker decisions. By integrating artificial intelligence (AI) and machine learning, credit unions can achieve faster approvals and higher approval rates without compromising on risk management. This dual benefit of speed and accuracy reduces underwriting costs and improves overall operational efficiency.
2. Improved accuracy: Historically, credit unions have been cautious about adopting automated decisioning. However, advancements in AI have demonstrated significant improvements in decision-making accuracy. In fact, we have seen AI machine learning increase approvals by up to 25% without a corresponding increase in risk. Additionally, AI engines can achieve 99% accuracy in processing, safeguarding against fraud, and ensuring compliance. This precision reduces human error and enhances the member experience by providing a frictionless loan origination process.
3. Enhanced digital experience: Automation improves the digital experience members and potential members demand in auto lending. In the competitive financing landscape, automation can eliminate redundant information requests and streamline the application process. This efficiency is crucial in the world of lending, where loans are won quickly.

Implementing an automated solution

Credit unions have traditionally prioritized high-quality member service, which has been a cornerstone of their success. Now, with modern automation solutions, they can enhance this personalized approach even further. Automation offers configurable capabilities that seamlessly integrate with the credit union’s philosophy of individualized service. Automated loan processing and decisioning can be precisely tailored to specific risk factors and economic conditions, providing unparalleled flexibility and control over loan decisioning.

By leveraging champion challenger models, credit unions can test and refine decision variables, ensuring optimal outcomes. This iterative approach allows for continuous improvement and adaptation to changing market dynamics.

The future of loan processing lies in the refinement of AI models and the accumulation of data. Advanced risk-based pricing models can differentiate between borrowers with similar credit scores, identifying nuanced risk factors that traditional methods might overlook. AI’s ability to analyze vast datasets in real time offers unparalleled insights, driving more informed and accurate lending decisions.

Partnering for success

Origence is dedicated to empowering credit unions with the tools needed for digital transformation. Our partnership with Informed.IQ enhances document automation for indirect lending, expediting the funding process for both dealers and lenders. Additionally, our collaboration with Zest AI provides credit unions with more accurate credit scoring methods and fast, automated decisioning.

Ready to elevate your credit union’s lending capabilities and member experience? Contact us today to learn how Origence and arc OS can support your digital transformation journey.