Posted by MeridianLink | October 23, 2023

Leave Legacy Lending Behind

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It’s time to evolve alongside your members and exceed expectations 

As a credit union striving to fulfill its mission in a rapidly changing financial landscape, your lending strategy is at a crossroads. Here you stand at the intersection of tradition and innovation, where the choices made can significantly impact your ability to serve your members and communities effectively. 

Your legacy systems, though they may have served you well, can no longer keep pace with the demands of your members. As technology advances, so do the expectations for streamlined, convenient, and efficient lending experiences. That likely comes as no surprise though, since 95% of all financial institutions have plans to enhance their lending capabilities, and for credit unions, automated decisioning, improved funding, and cross-selling are key priorities in that decision.  

But how do you successfully achieve that goal? We’re going to help you chart the future of your credit union’s digital lending strategy.  

A Path to Serve Members & Communities 

The increasingly clear and compelling path forward is one of transformation. But it’s not just about upgrading your technology, it’s about redefining how you engage with your members, streamline operations, and make data-driven decisions. 

Legacy technology solutions often involve increased costs, decreased efficiency, security concerns, and a reduced ability to adapt to changing borrower expectations—all of which impact your credit union’s propensity to effectively serve your members.  

Highlighting the importance of member perception, an insightful study reveals that 73% of members who believe their credit union genuinely cares about their financial well-being are actively engaged in their credit union relationship, demonstrating both a rational and emotional attachment to the brand. On the other hand, among those who do not feel their credit union prioritizes their financial well-being, a mere 20% exhibit engagement.  

What does that mean?  

Choosing the right LOS for your credit union’s strategy transcends mere loan processing. It’s a pivotal component of a broader commitment to member retention, member growth, expanding share-of-wallet, and actively contributing to your members’ overall financial success. 

Aligning With Your Core Mission 

In an era marked by innovation, fintech lenders have emerged as leaders in elevating borrower satisfaction, primarily by championing a streamlined digital loan process. This success story underscores a pivotal point—embracing modern, digital-first loan origination doesn’t require compromising your credit union’s mission and values. On the contrary, it’s an opportunity to further align with your core principles by: 

  • Empowering your credit union to offer more personalized and efficient services, simplifying members’ access to loans and financial resources. 
  • Combining clear and transparent communication with efficient processes to build member trust and foster active engagement. 
  • Streamlining the experience from application to approval and funding to create cost savings which can be passed on to members in the form of lower interest rates and better services. 
  • Enhancing security measures to help protect member information and your credit union.  
  • Expanding the reach of your products and services to strengthen community outreach and build strong, lasting relationships beyond basic financial transactions. 

The Impact of Your New Lending Experience 

Embracing change and evolving alongside your members can ensure you remain a pillar of trust and support in the communities you serve. Credit unions that have adopted MeridianLink’s next-gen digital lending solutions have witnessed this remarkable transformation, yielding results that include:  

  • An increase in instant approvals making the lending process smoother and more efficient for staff and members alike. 
  • Accelerated growth, enabling the credit union to serve more members and extend its reach within the community. 
  • A more efficient account opening process that improves the member experience and allows the credit union to open more accounts in less time, ultimately minimizing application abandonment.  
  • Greater approval to fund ratios resulting in more satisfied members and contributing to a healthier lending portfolio.  

As you navigate the intersection of tradition and innovation, remember that embracing modern technology is not a departure from your mission but a way to amplify your impact. 

Leave legacy lending behind and chart your course to a brighter future with our latest infographic. 

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