Digital Loan Payment Process Solves Challenges

Adding a digital loan payment service can be a solution to the challenges many credit unions face when accepting loan payments. Here is a case study from a credit union that found Catalyst Corporate’s new CU LoanPay module to be a helpful solution.

Victoria Teachers Federal Credit Union (MyVTFCU) in Victoria Texas signed on to implement Catalyst Corporate’s new CU LoanPay module earlier this year. MyVTFCU President/CEO Blake Matus shares how adding this service helped address key credit union challenges, and what led them to Catalyst’s CU LoanPay as their solution.

Background:

Founded in 1955 by a group of educators who wanted a better way to save money, MyVTFCU has grown to nearly $19 million in assets and more than 1,200 members. Always looking for ways to better serve its membership, the organization set its sights on an easy-to-use, straightforward digital loan payment service. That’s when they found CU LoanPay from Catalyst. CU LoanPay is a digital loan payment module made available through a convenient link placed on credit union websites. The service provides a quick and easy way for members to make loan payments with funds from another institution.

“Over the years, we have added numerous products and services to help make managing finances simple,” said Matus. “Our goal is to become a full-service credit union and CU LoanPay is a product that will help get us one step closer.”

Challenge:

With inflation, delinquencies and collections on the rise, having limited options for accepting loan payments has created challenges for many credit unions. Matus said they often ran into issues during the payment receipt process because they were unable to take payments over the phone, which required members to visit a branch to bring in cash or a check.

“We’re living in a digital world and it’s imperative that we change with the times to ensure member satisfaction,” he said.

For MyVTFCU, one of the most frequently asked questions during account opening is, “Can I pay my loans online?” Prior to landing on CU LoanPay, the answer was always no. Fortunately, that will no longer be the case.

With CU LoanPay, borrowers can access MyVTFCU’s loan payment service from anywhere, via phone or computer. More importantly, it provides members with an “always-on” channel and multiple methods of payment.

Solution:

"We did a lot of research on companies that provided digital loan payment products and decided on Catalyst because of their longtime partnership and service with our credit union. The pricing was affordable, the product is user-friendly and we already use Catalyst for ACH processing, so the decision was a no-brainer,” said Matus.

With CU LoanPay, members are empowered to proactively pay loans on a timely basis. In turn, credit unions can better manage cash flow and delinquency rates.

Offering self-service technology can accelerate processing and provide credit unions modern conveniences, such as automated email confirmation upon payment. Combined, these factors benefit credit union operations and the overall member experience – the best of both worlds.

Results and the future with CU LoanPay

With full launch pending MyVTFCU’s conversion to a new core processing system, CU LoanPay is helping to expand their service offering, further propelling them toward the goal of becoming a full-service credit union. Matus and team anticipate member adoption will continue to grow in the future as well.

“We look forward to spending more time visiting our partner schools with the time we’ll save by allowing members to process their own payments,” Matus concluded.

Catalyst Corporate’s CU LoanPay module simplifies loan payment processing, bringing added convenience and efficiencies both to credit unions and their members. For more information on CU LoanPay, contact us today.