Taking advantage of a need and the season, a few years ago, the $961 million Cheyenne, Wyo.-based Blue Federal Credit Union introduced a holiday loan program that worked almost too well.

The terms required no credit check, membership for at least 90 days, a $1,200 maximum and a 12-month term. "We greatly underestimated the popularity of this product," Blue FCU COO Andrew Shaw, said. "Members loved it, but it soon became an operational nightmare for us."

According to the credit union, initially, members needed to visit a branch to request the holiday loan. The slow process resulted in unhappy members waiting in the branch for longer than expected. As it had done in the past with other antiquated processes, the credit union approached Aurora, Colo.-based technology resource company DaLand Solutions to discuss relieving the program's pain points.

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Roy Urrico

Roy W. Urrico specializes in articles about financial technology and services for Credit Union Times, as well as ghostwriting, copywriting, and case studies. Also: writer/editor of a semi-annual newsletter for Association for Financial Technology since 1997 and history projects funded by the U.S Interior Department, National Park Service and Warren County (N.Y.).