The pandemic has negatively impacted the U.S. economy. Approximately 36.5 million people are unemployed, where three million people filed for unemployment benefits in May. That number is expected to rise as more businesses permanently close and continue to lay off workers. As people consider sources of financing to stay afloat, many will turn to your credit union for a personal or small business loan.
The effects of COVID-19 will have a lasting effect for a long time. Right now, your members are looking for more than just a lender. They are looking for their credit union to provide the services they need with ease. That includes helping with bill pay, financial guidance and emergency loans.
Web loan applications are designed to collect data, perform automated loan decisions and incorporate your credit union brand to deliver a super user experience. Filling out manual applications is a laborious task and one that’s not easy to do with credit unions relying on drive-thru and digital services for business. Plus, automated technology accelerates the lending process. Regardless of the size of your credit union, a fast loan origination process gives you a competitive edge.
With the technical infrastructure to process online loan applications, your credit union will be able to provide valuable insights into customer needs, reduce risk and simplify reporting, increase productivity and save time and money with each transaction. Loan officers can apply their expertise where it will be of the greatest benefit and shift their attention to value-add services. This becomes vital as small businesses turn to their credit unions for relief, especially with new government assistance programs being rolled out.
The Small Business Administration (SBA) launched the Paycheck Protection Program (PPP) to provide a direct incentive for small businesses to keep their workers on the payroll. This assistance is vital in expanding access to capital for entrepreneurs, especially underserved borrowers, who contribute to a community’s economy. And, it helps your credit union tap into another product for members.
As a lender, it’s important to look for innovative solutions to adopt with changing times. Without the ability to process web-based loans, you’re missing out on an opportunity to compete with other financial institutions. Borrowers are depending on you to help them in these stressful times. Remove the complications out of the loan application process and provide easy access for your members.