Recent reports have shown that customers are moving away from banks when borrowing funds – the growing shadow industry has caused Home Depot and Sam's Club to offer loans and mortgages, and one study found that slow execution of mortgage applications is consumers' biggest frustration when taking out a loan from a bank. To add to this trend, credit unions may reach new records of applications in this coming year.
For those that are finding an increase in applications, loan application software can help credit unions lend to qualified borrowers.
According to New York Times, the credit union industry is expected to experience $100 billion in originations by the end of 2013, a new record. As the economy begins to recover, more and more consumers may become comfortable with taking out mortgages. In the same way consumers are turning to lenders in the shadow banking industry as the reputation of banks, more consumers are turning to credit unions.
The president of American Credit Union Mortgage Association told The New York Times poor service at major banks is turning consumers towards credit unions.
"We'd be remiss if we didn't give a shout-out to the major banks for being annoying to consumers and forcing people to seek out other alternatives," said ACUMA President Bob Dorsa.
While banks still remain the most likely place for consumers to receive loans, rising popularity in credit unions means banks may need to become more aggressive in upcoming years.
As interest rates continue to fall and consumer confidence brings in higher rates of mortgage applications, banks may find using case management software can help loan originators remain competitive in the evolving industry.