Loan Origination Software
Credit unions have benefited greatly since the recession, parlaying eroding consumer trust in enterprise financial institutions into new memberships and increased patronage. However, as these member-owned banks find themselves exposed to a larger pool of applicants – and, therefore, greater risk – the need for sophisticated loan origination software becomes more pressing.
The nonprofit Credit Union National Association (CUNA) reports that, nationwide, credit union memberships have been on the rise in recent years. In 2011, U.S. credit unions added 1.3 million new members. Growth continued into the early part of 2012, according to a CUNA report released in March 2012.
According to that study, credit union memberships increased by 625,000 during the first quarter of 2012. Through the first three months of this year, credit unions had already added roughly as half many new members as they did throughout all of 2011, and had actually exceeded the total of new members recorded during the entirety of 2010.
New members pose new financial opportunities for credit unions, however, without insight into credit risk, credit unions may lend irresponsibly. Loan origination software – already used widely within larger financial institutions as a cornerstone to risk management frameworks – could provide smaller banks and credit unions with the support needed to manage higher application volumes.
Lender software is now more affordable and accessible, and its flexibility can be an advantage to smaller lenders with more volatile portfolios. Our risk management software is available via an SaaS platform or a license agreement, offering financial flexibility to credit unions.
As a result, these banks can benefit from automated decisioning and advanced application processing capabilities to drive profits and mitigate risk.