CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Jobs
  • Contact

News

Home » SPONSORED BY Moody's Analytics
Sponsored Content
Sponsored Content
Description+goes+here

The future of lending will be digitized

Prioritize employees’ abilities to securely access data and critical software.

June 21, 2021
Robby Holditch
No Comments
Robby_Holditch_1200x630_119563

If there was still any question that the digital revolution in financial services is fully upon us, the world-changing events of 2020 have removed all doubts.

The coronavirus (COVID-19) pandemic highlighted several challenges facing credit unions—above all, the urgent need to provide employees with the ability to work remotely while continuing to serve their members.

Content Sponsored By:

Moody's Analytics

For example, I work closely with a mid-size credit union in the southeastern U.S. In March 2020, that cooperative redeployed all but 8% of headquarters employees to work from home. The credit union was forced to pivot quickly to remote work for virtually all roles, including commercial and personal loan officers, who, for the first time, had to figure out how to interact with borrowers in an entirely virtual environment.

With this experience in the rearview mirror, credit unions must prioritize their employees’ abilities to securely access data and critical software needed to meet member needs— anywhere and anytime.

Compelling digitization use cases

When my wife and I applied for a new personal mortgage last year, we noticed a stark difference between working with our local credit union and with one of the better-known “big banks.” Although we wanted to originate our loan through the credit union, the application process was clunky and confusing, marked by highly manual processes, wet signature requirements, and in-person document exchanges. In contrast, our experience with the bank was a breath of fresh air. The process was fast, and all steps—from application to approval to closing—were completed through a secure, digital platform.

In commercial lending, lenders’ experiences with the Payroll Protection Program (PPP) were eye-opening as well. Those credit unions that quickly implemented cloud-based digital processes to accept PPP applications and grant approvals and deliver funding to businesses proved instrumental in helping those businesses keep their doors open. Credit unions also contributed to saving tens of thousands of jobs while earning grateful, loyal new business relationships.

Bottom line: institutions that have figured out how to digitize their lending processes are creating faster, more streamlined, and better borrower experiences.

Embrace digital to compete

Post-pandemic, the guiding principles of savvy financial institutions include: a consistent view of changing risks, the ability to provide an outstanding member experience, and a commitment to continual, iterative development.

Digitization is the common element of all three core principles. By digitizing manual processes and moving them to the cloud, credit unions can succeed in lowering costs, improving efficiency and productivity, and creating an improved member experience. In addition, digitization can improve agility and speed to market, allowing credit unions to compete with even the largest banks and retain member relationships for the long term.

To get a head start on the digitization path, seek out a vendor partner with a proven solution. Now, more than ever, credit unions need to engage trusted partners that have already been down the road to guide them along their digital journeys.

ROBBY HOLDITCH is director of the risk and accounting group at Moody’s Analytics.

KEYWORDS digital member experience

Post a comment to this article

Report Abusive Comment

Credit Union Magazine: Winter 2022

Winter 2022

Credit Union Magazine’s Winter 2022 issue highlights data-driven marketing, the board’s role in cybersecurity, elder abuse scams, credit unions’ auto lending advantage, and more.
Digital Edition •  Subscribe

Trending

  • House passes CUNA, League-led board modernization bill

  • CFPB issues CUNA-opposed proposal on credit card late fees

  • Key committee leaders supportive of credit union priorities

Tweets by CUNA_News

Polls

Vote for the 2023 CU Hero of the Year

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us