Embracing Automation: Enhancing Lending Services in the Digital Age

In today's digital-driven world, credit union lenders are working to improve member service at every critical touchpoint. Evolving member expectations are pushing for more convenient options, like online membership and loan applications with quick decisions.

Providing a great digital member experience is crucial for credit unions' success. Pressure from fintech brands, economic uncertainties, and fast-paced tech changes are driving credit unions to embrace technology to deliver a better borrowing experience. At the forefront of these technology opportunities, automating loan processing and decisions can be a game-changer for credit unions. 

Here's how automation helps:

Efficiency Gains: We all want to fund more loans and make faster decisions without taking on more risks. Providing loans to members who need access to affordable funds is central to our mission. Automation helps us do just that while making our processes more efficient and reducing underwriting costs.

Enhanced Accuracy: Despite some initial reluctance by the credit union community, automated decision-making can improve the quality of our decisions. AI and machine learning can increase approval rates by up to 25% without increasing risks. Automation also brings a higher level of accuracy, which helps detect fraud and assists with compliance, reducing errors and providing a smoother experience for our members.

Reduced Friction: Automation not only speeds up processes but also reduces friction points. Automation can streamline funding processes for credit unions looking to expand their dealer relationships.

Furthermore, automation helps us meet the high digital expectations of our members, especially in auto lending. We can't afford to lose opportunities due to redundant information requests or lag behind fintech disruptors. Staying ahead in the digital game is a crucial challenge for credit unions.

Implementing automation might be new for credit unions, which have traditionally focused on personalized member service. However, modern automation solutions offer flexible configurations tailored to specific needs. Credit unions can use automation to accelerate approvals in specific scenarios and automatically reject others, adapting programs to changing risk factors and economic conditions.

Automated loan processing and decisioning enable quick, data-driven credit decisions. Teams can set up and fine-tune decision engines, making reviewing and deploying automation easier for efficiency and accuracy.

As technology advances and we gather more data, these automation models will only improve. We're already seeing risk-based pricing models that consider variations in default rates among borrowers with the same credit score. AI models can analyze vast amounts of data within seconds, spotting nuances that would take humans months to find.

Origence is ready to help

At Origence, we're here to help credit unions embrace automation for a modern member experience. With best-in-class partners such as Informed.IQ, we're making document automation in lending faster and more efficient. Our arc OS origination system, in collaboration with Zest AI, offers more accurate credit scoring and faster automated decision-making.

If you're ready to kickstart your credit union's digital transformation, feel free to contact us. In a rapidly changing financial landscape, automation is the path to efficiency, accuracy, and digital excellence for credit unions and their members.