By putting the loan application process online, the credit union makes the process more convenient for members. Given the ability to begin and complete a loan application online, the member can work when and where is best for them. Rather than taking time out of their day that could be spent at their business or working with clients, they can fill out their loan application at 10:00 p.m. on a Sunday in their free time.

The second requirement for a happy member is making the experience easy. Turbo Tax is a great example of a product that takes an incredibly un-fun and difficult task and turns it into an easy-to-understand, step-by-step process. Loan applications are inherently complex, and they too can be made easier with a few key changes. The first, and most important, is data entry. Loan applications require a lot of data about the member, including financials, details of the loan and information about other related businesses or individuals that are necessary for a global credit analysis. Entering all this data manually is a long and tedious task. By using technology, applicants can import data directly from electronic tax returns and reduce their data entry time by as much as 30 minutes per tax return.

Another key way to make the loan application process easier is to make it as transparent to the member as possible. An online loan application allows the credit union to list out everything that will be required to complete the application, so the applicant knows what documents they need to gather and if they need to contact their CPA, attorney or business partner for additional information. Transparency about requirements helps prevent members from becoming frustrated and giving up; applicants are more likely to complete a process that is clearly laid out from the beginning.

An additional, simple way to simplify the loan application is to provide the member with the email and phone number of their assigned loan officer. Even though many modern credit union members prefer to work online at their convenience, even millennials will want to speak to a real person when they have questions. The humanity and personal attention from the credit union is a differentiator that does not need to be lost, even when the process is digitized.

No matter how technology evolves in the lending industry, customer service and member experience will always be determining factors in achieving success. Fintech companies are setting new standards when it comes to convenience, allowing consumers to access relatively complex products like mortgages on their phones in minutes. If credit unions want to compete, they will find it valuable to extend the loan application process out of the physical branch and into an online loan experience that provides members with a convenient, easy-to-use platform to apply for member business loans.

Elise Hauser is product marketing manager for Sageworks. She can be reached at 919-851-7474, Ext.2637 or [email protected].