Blog Post

9 Digital Process Automation Benefits for Credit Unions

April 27, 2022

Like most credit unions, you’re always looking for ways to automate your processes and workflows. If so, digital process automation is the answer. Credit unions can save time and reduce costs by automating recurring tasks like new account setup, loan processing, and claims management. In this blog post, we will discuss the benefits of digital process automation specifically for credit unions and how it can help credit unions become more efficient and productive.

Why is Digital Process Automation Important for Credit Unions?

Digital process automation is critical for credit unions because it helps them improve member satisfaction, increase operational efficiency, and drive down costs. By automating manual processes, credit unions provide their members with a better experience by reducing errors and increasing transparency.

In addition, automating processes helps credit unions improve their operational efficiency by eliminating the need for manual data entry and paper-based processes. It also enables credit unions to save money by reducing the number of full-time employees needed to support manual processes. Credit unions that adopt digital process automation will be well-positioned to compete in the future.

What Credit Union Business Areas and Processes Benefit from Digital Process Automation?

Sales and acquisition benefit greatly from automation. Automated tools can help credit unions identify potential new members and target them with relevant offers. This can increase membership growth and improve the overall financial health of the credit union. Additionally, automation can streamline loan operations, resulting in decreased processing time and improved accuracy.

Digital process automation standardizes and automates key steps in the hiring process, such as posting job openings, screening applicants, conducting interviews, and extending job offers. By automating these steps, organizations reduce the time it takes to fill open positions, and improve the quality of hires. Furthermore, automating the onboarding process helps new employees hit the ground running by providing them with the information they need when they need it.

Credit administration and consumer and auto lending are other key areas that benefit from automation. Automated processes help credit unions assess risk, increase collaboration, obtain faster approvals, identify potential fraud, provide a better customer experience, and make faster and more informed decisions about loans.

9 Digital Process Automation Benefits for Credit Unions

There are many benefits of digital process automation for credit unions. Here are nine of the most important ones.

Improved efficiencies/workflows

Credit unions need to find ways to improve their operations and become more efficient to remain competitive. Digital process automation can help them do just that by automating repetitive and time-consuming tasks. This not only frees up employees’ time so they can focus on more important tasks, but it also helps ensure accuracy and consistency in the work that is being done. Automated processes are often more secure than those done manually, which is essential for organizations handling sensitive data.

Better experiences lead to increased engagement

Credit unions can improve the member experience and engagement through digital process automation in a few ways. The first way is by automating tasks that members have to do manually, such as online account management or applying for a loan. This reduces the time it takes to complete these tasks, eliminating the need to wait on hold or fill out paper forms.

Additionally, credit unions can use digital process automation to provide more personalized service. For example, suppose a member has multiple accounts with your credit union. In that case, you can use digital process automation to automatically populate their account dashboard with information about all of their accounts. This gives members a one-stop-shop for all of their account information and makes it easy to access the information they need.

Digital process automation can also help credit unions improve their engagement with members. For example, you can use digital process automation to send targeted messages to members based on their interactions with your credit union. This allows you to provide valuable content and offers relevant to each member, increasing the likelihood that they will engage with you.

Member attraction/retention

As a credit union, you're always looking for ways to attract and retain members. After all, without members, you wouldn't be in business. That's why making the loan application and approval process easier and faster is so important. Doing business online with customers will set a credit union apart from other financial institutions and makes it more likely that members will do business with you again in the future.

Digital process automation helps you accomplish this by streamlining the loan application and approval process. By automating repetitive tasks, you'll be able to approve loans faster and make it easier for members to pay their loan payments on time. You can even set up reminders to let members know when their loan payment is due.

All of this makes for a better member experience, which is essential for attracting and retaining members. So if you're looking for a way to improve your credit union's member attraction and retention rates, consider implementing digital process automation.

Increased cross-selling into existing member base

Perhaps the most important benefit of digital process automation is increased cross-selling into your existing member base. When implemented properly, DPA can provide a number of benefits that can help increase cross-selling, including:

  • Increased Efficiency: DPA can automate repetitive and often manual tasks, such as data entry and customer follow-up. This can help improve efficiency and accuracy while freeing up staff time to focus on selling.
  • Improved Customer Service: DPA can help improve customer service by providing rapid responses to customer inquiries and automating follow-up communications. 
  • Greater Visibility: DPA can offer greater visibility into customer behavior and preferences, allowing for more targeted cross-selling efforts.
  •  Increased Sales: Ultimately, DPA can help increase sales by streamlining the selling process and making it easier to connect with potential customers.

Increased processing speed

The increased processing speed of digital process automation benefits credit unions in multiple ways. Perhaps the most obvious way is that it allows for a faster turnaround time on loan applications, new member requests, and other time-sensitive tasks.

In addition, this increased speed also improves accuracy. By automating repetitive tasks and eliminating the need for manual input, there is less room for error. This results in fewer mistakes being made and a generally higher level of quality control within the credit union. Furthermore, by automating tasks that were previously completed manually, credit unions can save on labor costs.

Core providers are complemented

Digital Process Automation is a technology that enables organizations to process credit union core data. Core providers are typically responsible for providing the software that credit unions use to manage their member data. DPA can help credit unions complement their core provider's offerings by automating processes related to member data management, such as onboarding new members, updating member information, and processing loan applications.

DPA also helps credit unions improve operational efficiencies and reduce costs associated with manual processes. When selecting a DPA solution, it is important to consider how the solution will integrate with your existing systems and infrastructure. Credit unions should also consider the vendor's experience in deploying DPA solutions for other organizations.

The iterative process of incremental changes

As digital transformation initiatives continue to take hold in organizations across industries, the need for process automation has never been greater. Process automation can help organizations improve their operations by providing insights into bottlenecks and errors, and helping to make the necessary changes to scale operations. A bottleneck is anything that slows down or prevents a process from being completed. Common bottlenecks include manual tasks, waiting for approvals, and data entry errors.

However, process automation is not a one-time event – it is an iterative process of continual improvement. In order to be successful, organizations must continually assess their processes and make incremental changes that lead to results. As your business grows, you'll need to add new processes and capabilities. With process automation, you can easily add new processes and make sure they're integrated with your existing ones. This will allow you to scale your operations without having to start from scratch.

Lower operating costs and increased operating leverage

Credit unions can improve efficiency by automating back-office processes and reducing time and money spent on tasks such as data entry, processing payments, and customer service. Automation can also help credit unions manage their risk exposure by minimizing the potential for human error. Automated processes can also be configured to run around the clock, providing greater flexibility and improved customer responsiveness. As a result, credit unions that implement digital process automation can expect to see significant improvements in performance and competitiveness.

Fast time to value

Time to value is a key consideration when evaluating and deploying digital process automation within a credit union. The faster they realize the benefits of automation, the better. With digital process automation, credit unions can achieve a fast time to value due to the quickly achievable gains in efficiency and productivity, that are not achievable with manual processes. Since digital process automation is easily scaled, organizations will continue to reap the benefits of automation even as their needs change and grow.

Automate Digital Processes for Credit Unions with Image API

As the world goes digital, so too must the credit union industry. Digital process automation is critical for credit unions to stay ahead of the curve and keep pace with the ever-changing landscape of banking and finance.

There are many reasons why credit unions need to adopt digital process automation today. Most importantly, it helps credit unions improve member experience and satisfaction by automating tedious and time-consuming tasks that members often find frustrating, such as loan applications and account opening.

Caledo is Image API’s new digital process automation software platform that can help credit unions achieve all of the amazing benefits of digital process automation. To learn more about how Caledo can help your credit union, don’t hesitate to get in touch with us or visit our website.

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