From manual to digital: Why credit unions need DPA

Discover how document processing automation (DPA) enhances credit union lending efficiency, accuracy, and competitiveness.

In auto financing, loan approval and delivery delays can impact a credit union’s success. Dealers often engage with whoever offers the first loan approval. Therefore, leveraging technology to deliver rapid, efficient service is crucial.

A survey by Wolters Kluwer reveals that nearly 63% of lenders and dealers reported it takes longer than 30 minutes to complete a sale when signing all documents manually. This process is significantly faster with digital tools. Consumers and auto dealers expect fast, reliable, and user-friendly experiences.

DPA offers a more efficient and standardized lending approach, speeding up loan origination, improving member and dealer experiences, and helping credit unions stay competitive. It allows staff to focus on valuable tasks, manage high volumes, and ensure smooth operations during busy periods.

What is document processing automation?

Document processing automation uses technology to automatically handle, analyze, and manage documents within the lending process. By employing artificial intelligence (AI) and machine learning (ML), DPA reduces manual tasks, improves efficiency, enhances accuracy, and speeds up workflows in various business processes.

Key aspects of an effective DPA solution:

• Data capture: Automated systems quickly and accurately extract data from documents like invoices, forms, and contracts.
• Data validation: Automated systems validate data using predefined rules or databases, checking for inconsistencies and verifying income details with financial databases.
• Workflow automation: DPA can streamline document processing, approval, and storage with strategic automation, reducing manual effort.
• Compliance and security: Ensure data follows regulations and protects sensitive information with security measures like encryption and access control.
• Efficiency and accuracy: Automate tasks, reduce errors, and speed up processing to improve efficiency and accuracy, freeing staff to focus on more valuable tasks.
• Scalability: Manage your document volume and easily scale to meet demand without extra costs.
• Streamlined operations: Supercharge operations by extracting important data, executing funding rules, creating custom document packages, and ordering forms.

How does DPA improve lending?

By automating manual processes, DPA minimizes errors and ensures consistent loan application handling. AI algorithms apply predefined rules for impartial and precise decision-making.

DPA can flag potentially fraudulent paystubs, reducing the risk of fraud. Unlike staff who must meticulously check each page, DPA can identify fake paystubs in seconds with 99.8% accuracy.

Processing speeds also improve through data digitization and automated discrepancy detection. For example, AI detects name variations and subsidiary listings on paystubs, quickly verifying and consolidating information to prevent delays.

In an increasingly digital landscape, credit unions that leverage DPA can gain a competitive edge with faster workflows, stronger dealer relationships, and a better member experience. Adopting DPA is a strategic move to optimize operations and improve your bottom line. Ready to learn more about how DPA can strengthen your credit union’s lending business? 

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