From 2020 to 2021, credit union members’ customer satisfaction dropped 2%. For digital and online bank members, however, that rate rose 2%. Though not a dramatic difference, this shift does reflect how customers now expect their financial institutions (FIs) to offer more tech-friendly ecosystems.
Customers want FIs to provide modern products and services that are convenient and easy to use in today’s digital landscape. In fact, one study found that 30% of millennials and 24% of Gen Xers who are credit union members were very likely to leave their current credit unions for more innovative competitors.
Integrating new technology into your dealership loan process improves your credit union members’ experience. This helps you both retain current members and more easily gain new ones.
Knowing where and how to use the best tools to make your credit union more efficient, competitive, and profitable is vital. Give your credit union an edge over competitors by following these best practices.
Use Technology to Be More Efficient
On average, a bank can have five to 10 times the number of employees and six to 22 times as many assets as a credit union. Adopting technology to improve your team’s efficiency without needing to hire more staff is critical when competing against larger institutions.
Even now, employees manually perform over 50% of loan process tasks. This approach to consumer lending is a labor-intensive process that requires hours to complete and has a high margin of error.
Implementing technology that automates workflows, like credit analyses or loan approvals, and digitizes data management will reduce the amount of work your staff wastes performing simple tasks and fixing mistakes.
This kind of technology is considered a sales force multiplier, which means your team will be able to get more work done in a faster amount of time, increasing your credit unions’ productivity and profit.
Move Services Online to Attract More Customers
Due to the pandemic, customers were forced to manage their finances online. Most have no plans to return to old habits. For example, after trying digital banking, 63% of consumers preferred to manage their finances online, and 59% planned to continue using digital tools.
Utilizing a web-based platform that connects lenders and dealers lets your credit union connect to more customers who are already committed to making a purchase at the dealership. This allows both potential and current members to easily view your lending offer side by side with other big-name lenders.
By using an online tool, your credit union can meet its members where they shop. You’ll be able to reach out to more customers and grow your sales potential without needing to invest in a larger sales force.
Go Digital to Eliminate Human Error
Despite the push toward digital, the amount of paperwork used in a dealership loan process can be massive. If you were to lay out those loan documents end to end, it would add up to nearly 39 feet of paper for every purchase at the dealership.
Digitizing your forms management and application process reduces the risk of errors and delays in your lending process. Using a centralized network that connects lenders, dealers, and customers can eliminate any dealer contracting errors and returned contracts.
People make mistakes — it’s an inevitable reality every business must account for. Using paper to manage data and documents makes it difficult for those mistakes to be caught and fixed in a timely manner. By cutting paper out of the equation, your credit union will be able to save time and money.
Embrace Automation to Improve Member Experience
One of the biggest problems lenders today face with consumer lending is how much time employees waste on non-core tasks. They spend up to 30 to 40% of their lending resource time performing tasks that could easily be automated, such as credit analysis or loan document compliance.
By 2024, organizations that provide better digital integration into their business operations are predicted to outperform competitors by 25% in customer satisfaction. Integrating automation tools helps speed up your lending process and improve your members’ customer service experience.
Using a web-based platform, like AppOne, streamlines and automates your consumer lending process, giving your credit union a competitive edge by processing credit applications quickly and accurately.
