During 2021 we will be working on several projects around our online loan origination and application processes. This recipe outlines a big-picture vision for the key projects we’re working on.
A Focus on Serving Authenticated Members
Since 85% of online apps are for known members, our intention is to build the most effective flow possible for serving the internet-enabled, authenticated member. This means members applying for loans will always log in using their It’s Me 247 credentials, and we can work with these trusted members in new ways to improve the overall member experience.
This means we are moving away from handling non-member loan applications via our online LOS. CU*BASE itself will, of course, still have pre-membership lending tools, and CUs who use third-party LOS integrations to pull in indirect and other non-member requests will still work as they always have. The difference is that we will no longer allow a non-member to apply for a loan using our online loan app.
NEW! View an excerpt from the 2021 Leadership Conference presentation
To accomplish this, we’ll be designing a new workflow design for our online LOS. Here are some specifics:
- We’ll be rewriting the UX to walk through the entire process, one step at a time, with friendly messaging to make it crystal clear where members go to apply and where non-members go.
- The UX will automatically funnel non-members to a separate form. CUs will be able to choose where they wish these applicants to be directed, such as to a form on our Request Center, or to the credit union’s third-party LOS, or to an online form on the CU’s website, etc.
Because members will always be logged in, we can streamline the flow in this “trusted” environment, reducing the need for members to input data we already have, and we can start presenting even more member data for verification and updates. For example, member address information can be presented to ensure you are gathering the most recent data, especially for members who weren’t previously set up to use online banking.
Status as of June 2021: Specifications have been submitted for PS#55639 and we will begin work on prototype designs in the second half of the year.
Reducing the Clutter in the Loan Queue
Our goal here is to take the trash out of the loan queue by developing smarter routing for completed versus incomplete apps, and handling “looky-loo” leads in a new way.
Urgency Prompt
To better channel loan applications that are ready for a processor to work, versus leads that require a different level of follow-up, as part of the new UX we’ll be asking members to answer a question about their needs. This “urgency” prompt will provide 3 choices: urgent, soon, and just looking.
Not only will these choices determine where the app ends up in CU*BASE, it will also control what app screens are displayed to the member online. If a member is just shopping, rather than making them walk through the entire app we’ll ask a few questions about what they’re looking for, and what to expect when they do decide to apply. We’ll still grab the lead but instead of cluttering up the Loan Queue, we’ll send it as a new request type that your CU can work (or not) via Tool #13 Work Online Banking Apps/Requests.
Status as of June 2021: Specifications have been submitted for PS#55639 and we will begin work on prototype designs in the second half of the year.
Automatic “Store and Return” for Incomplete Apps
For members who get interrupted or who need more time to fill in the online app, we’ll build a new mechanism that remembers where a member left off and allow them to finish it later. This will happen for any apps where the member chooses either the “urgent” or “soon” prompt. If the process is interrupted and the member returns to apply again, we’ll check the queue for any partially-completed apps and present an option to resume, or delete and start over.
Just like now, any app where the member did not get all the way to the credit report authorization step will be flagged as “incomplete” in the queue, so they can be ignored until the member completes the process. We’ll even add a new option to the Loan Queue that will let you hide incomplete apps until you wish to review or delete them.
Status as of June 2021: Specifications have been submitted for PS#55639 and we will begin work on prototype designs in the second half of the year.
Quoting Insurance Coverage Up Front
Early in the current application process a member can ask for a payment estimate. We’ll be changing that estimator so that any configured insurance (or debt protection) coverage will be included automatically in the initial payment quote. (Members will still be able to de-select coverage later in the process.)
Status as of June 2021: Specifications have been submitted for PS#55639 and we will begin work on prototype designs in the second half of the year.
Smarter Handling for Secured vs. Unsecured Apps
Although this first round of projects focuses on improving the flow for authenticated members, rather than reworking the actual application itself, we are working on some enhancements to the app based on suggestions we’ve heard often from our clients.
First, we will be adjusting the flow for loan products based on whether they are secured or unsecured, when it comes to requesting collateral information in the app flow:
- For secured loans, we’ll make the collateral fields required but also offer an alternate “I’m just shopping” option where they can describe why they need the loan. These notes will be stored in the application comments.
- In place of the collateral fields, for unsecured loans we’ll provide a place for members to explain why they need the loan. These notes will be stored in the application comments.
- When collateral is gathered, we’ll add a place for members to provide a VIN or other ID #. We’ll also add a place for additional notes about the collateral item, and store those as comments on the collateral record itself.
In addition, the way that payments are quoted for secured versus unsecured products will get a makeover in the online app. Specifically:
- In the CU*BASE Loan Product configuration (Tool #470), when setting up the online banking parameters there will be new options when setting up a Process Type V (online credit card) or L (line of credit) product. Instead of terms, you’ll define a percentage to be multiplied by the disbursement limit to calculate the payment to be quoted. For example, if the member requests a credit card with a $5,000 limit, and your configuration has a setting of 3.25%, the online app would estimate a monthly payment of $162.50 ($5,000 * 0.0325).
Status as of June 2021: Specifications have been submitted for PS#55639 and we will begin work on prototype designs in the second half of the year.
Miscellaneous Improvements
Other items to be addressed with PS#55639:
- Create a new “payment estimator” app that will pull from the credit union’s loan product config and allow the member to more easily experiment with different terms and amounts, with payments quoted that also include available insurance/debt protection coverages
- Add a “Separated” option under Marital Status and possibly other changes to give CUs in marital-property states a little more flexibility on how they wish to collect spouse data
- Pull in the day of the month for the loan payment due date from the Loan Product defaults configuration (helpful for online credit cards where the due date must be set consistently)
- Allow co-applicant income & employment data to be entered on the app
We’re Gathering Ideas for Future Phases, Too!
Other ideas under consideration for future LOS enhancements:
- Allow CUs to configure which fields are required and which are optional
- An “application portal” where members can check on the status of their pending loan applications (whether submitted online or via an employee in CU*BASE) – so they can see if it’s moving along, see messages about things the CU needs from them (documentation, signatures, etc.)
- As shown in the illustration above, we have future plans to address non-internet-enabled members. For members who haven’t ever logged in to It’s Me 247 before, a new flow would be designed that would automatically walk the member through the process of setting up their online banking credentials, using the new first-time authentication method (confirmation code sent via text or email) introduced a couple years ago. Design work for this will begin in earnest in late 2022/early 2023.
Other Related Projects
Other new features coming to the CU*BASE LOS:
- 1Click Signature Loans and LOCs (Project #54948 is currently in development)
- Share-secured Loans with e-signatures (Project #55229 is currently in development)
Chefs for this recipe: Pete Winninger, Dawn Moore, Geoff Johnson
