Strategic planning season is upon us. Like it or not, the digital lending era is here.
Since COVID hit, there has been frenetic activity among Credit Unions to update their lending models to compete. Borrower preferences are changing at a “revolutionary” vs. “evolutionary” pace. Fintech innovations, an increasingly friendly regulatory environment, and remarkable innovations in lenders’ operating models, are enabling this astounding pace of change.
Credit Unions need to use their strategic planning season wisely. Here are five suggestions to help you take advantage of this opportunity to both survive and thrive in the 2021 and beyond.
Today’s borrowers demand a frictionless, end-to-end borrowing experience—and they want it to be digital. As you move toward becoming a digital lender, avoid the trap of digitizing broken processes. Use the opportunity to really think through how each of the “moments” interacting with your credit union can delight your borrowers.
Personalize the experience for each borrower. All businesses are a little different and each business has different needs at different times. Consider seamlessly offering multiple business loan products as part of one unified borrower experience if you don’t already. Offer the right loan at the right time based on the real need. Ensure your digital business lending platform supports SBA loans, working capital lines, equipment finance, and any other products your credit union is comfortable offering.
Whether it be integrating a deeper dive into business credit analysis via appropriate reporting agencies, aggregating and synthesizing relevant macroeconomic data, ingesting and spreading business operating account banking trends, or even analyzing the social media sentiment of a prospective borrower’s business, there are many options to get a fuller picture of creditworthiness. The resulting data points can all be accessed, ingested, and interpreted instantly with today’s technology. None of this should be manual.
Build a digital-ready credit union staffing plan and execute now.
Digital talent is scarce and in high demand. Start finding the best now to help you on your credit union’s journey. The right talent for your credit union, in addition to being a good culture fit for your organization, should also possess a balance of experience with, and knowledge of, tried and true lending and banking practices with a detailed understanding of 21st century digital technology, borrower trends, and best practices for a credit union’s digital transformation.
Be ready to effectively manage the cultural transformation.
With internal silos breaking, new roles being introduced, and in some cases, long standing organizational power centers shifting, it is critical to follow effective, established change management protocols. If your credit union doesn’t possess skilled organizational design and development professionals or executives with experience managing significant change, consider bringing in a consultant to help.
Capiform is a SaaS based, comprehensive, fully-configurable, end-to-end digital lending platform enabling financial institutions to embrace the digital lending age at their own pace. Capiform allows lenders to automate and digitize as much of their lending process as they are comfortable with and without the hassle, time commitment, risk, and the expense of designing and building the technology in-house. Digital-Lending-as-a-Platform™ Your Brand. Your Credit Model. Your Customers. Our Platform.