Extra Credit
Credit unions are the backbone of the North American economy, fueling small businesses and supporting individuals. When credit unions improve their collections and onboarding processes, national economies are stronger as a result.
Credit unions make North America wealthier.
By extending credit to their members, often specific professions or demographics, they fuel commerce in local communities.
And when more local communities or specific industries prosper, national economies prosper as well.
When it comes to financial health, credit unions serve as a barometer, a weathervane, a red or green flag on a vital signs report of our economy.
While that importance hasn’t changed, the world in which members live and work has changed greatly.
Life has gone pleasantly digital no matter where you turn. Extending loans and accepting deposits call for the same convenience expected as when binge-watching a series, booking a rideshare or paying a parking-lot attendant via smartphone in real time.
Successful credit unions are aware of this trend. They know that modernizing their platforms not only improves member experiences but attracts and retains more members as well. Members might visit your site, open your app, or even walk into a branch office to inquire about a loan. But not all loan enquiries convert to successful applications. Think of your own experiences. Do you know why some applications were abandoned midway? Do you know what went wrong? Do you know what’s working well for your onboarding process? And once the application gets accepted and the loan gets disbursed, do you know if the collections process is managed as best as it can be?
These questions aren’t new, but the challenge of using innovative technologies to improve these capabilities and functions is. Such was a key takeaway from the recently concluded World Credit Union Conference in Boston (WCUC), this summer.
Onboarding and collections are not just one-time events; they are ongoing processes that require advanced technologies to not only achieve, but also maintain optimal results. When done right, these processes positively impact financial statements, especially when the technology streamlines processes.
Eliminating onboarding friction points via automation, processing loan applications without manual intervention and enhancing vetting processes all contribute to stronger earnings statements.
In fact, some WCUC participants noted that after prioritizing onboarding and collections innovation, their assets and loans doubled within four years.
So how do you determine which solutions are right for you?
- A worthwhile comprehensive collections management system must reduce delinquency, boost efficiency, and streamline processes for any credit union. It should provide a person-centric, 360-degree view of members and their accounts and offer a centralized location to manage multiple accounts through a unified workflow.
- Key features should include efficient summary information displays, controlled user access, and a powerful workflow engine that ensures accounts are properly prioritized.
- Communication must remain consistent, and queues should be refreshed automatically.
- Additionally, the system should allow for customizable and controlled management of collections, including flexible queue building, view creation, report generation, and letter customization.
On a parallel note, a robust onboarding and origination solution enables credit unions to attract and serve smaller businesses through seamless digital experiences. By leveraging AI and data analytics, credit unions can streamline onboarding, reduce processing times and offer personalized products tailored to the unique needs of their members. This fully digital, omnichannel approach not only improves customer satisfaction but also helps credit unions build stronger relationships with members, reduce costs and increase operational efficiency.
Credit unions who prioritize such innovation will reap the rewards of their decisions.
So will the world around them.
When individuals and smaller businesses tap access to fresh credit sources, they strengthen the base of their local economies, and when that happens, nations are better as a result.
Let’s conclude with some macroeconomic data.
Small businesses, defined as having 249 employees or less, accounted for 55% of total net job creation in the U.S. in a ten-year period ending in 2023.[1]
Small businesses depend on credit unions to grow.
And when small businesses grow, they hire.
And when hiring increases, the national economy is better off.
Be part of the solution today.
[1] https://www.bls.gov/opub/ted/2024/small-businesses-contributed-55-percent-of-the-total-net-job-creation-from-2013-to-2023.htm#:~:text=Since%20the%20first%20quarter%20of,Quarterly%20data%20are%20seasonally%20adjusted.