Bellwether Community Credit Union, Manchester, N.H., has deployed iPad technology in an effort to streamline loan applications, with BCCU reporting that members can now apply for a loan and receive funds in 15 minutes or less.
"Using iPads in the branches to close loans and keep them entirely in electronic format was a natural fit for our ever-present goal to increase internal efficiencies," said Jeff Benson, Bellwether Community CU's chief information officer. "Our branches are dialogue branches and have a very modern look and feel, so another benefit of using iPads is that they are a natural extension of the technology we utilize."
With three branches, one operations center and approximately 30,000 members throughout New Hampshire, the $385 million credit union has long embraced technology. However, this latest venture was not entered into without trepidation.
"This was on the outer edge of our comfort level," said Benson. "We determined that we needed remote delivery/closings, but when we actually got down to business putting this in place there were numerous discussions about the risks."
Since the program started six months ago, 40% of all loans are completed virtually, according to Benson. While he is more than happy with the outcome, arriving at this juncture required due diligence. "One of the things I love about credit unions is that we all collaborate. We surveyed our peers as well as conducted research about the emerging remote signature industry. We also asked for recommendations from our new loan-origination system provider."
Bellwether CCU's five team IT department had recently converted its loan origination platform to CRIF Lending Solutions' CRIF ACTion loan and account origination system. This provided for a centralized lending model that allowed for a better information flow between the credit union's core system and CRIF ACTion. The missing piece was the e-signature and electronic document presentment platform.
"We looked at a couple of remote signature vendors, but their suite of products was limited with more of a singular focus," said Benson. "We were looking for a partner that had a clear vision of remote delivery and workflow."
After conducting further research, and on the recommendation of CRIF Lending Solutions, Benson noted that IMM's iSign for TotaleAtlas was selected. "The credit union has really implemented a culture of electronic technology, which allows members to transact business where, when and how they are most comfortable," said John Levy, executive vice president and co-founder of IMM.
With the contract finalized, Benson and his team rolled their collective sleeves up and went to work embedding the system, which dovetailed with its loan-origination system that was recently converted. "We implemented the system fully live without making it available to the public. We conducted the normal classroom training for staff but we also gave them scripts to role play in their own offices."
A portion of the credit union's 81 employees next simulated the loan application process, which was sent to the credit union's centralized lending group who went through their underwriting processes.
"From there the docs would be delivered back to the front office staff for closing. Our contact center went through the processes of remote signing as well. Basically we created the new system for loan processing for staff to use in their own office like they would for the current process," said Benson. "Even with well-documented procedures and processes, once a member is in front of you it can be very intimidating if they haven't gone through that in-branch simulation."
The platform works is a multifaceted manner. Members can close loans while waiting for an airplane, sitting at home or visiting a branch location being assisted by an employee. Once the loan application has been underwritten, it begins the approval process. If it's sent to the branch, for example, the representative signs on to the TotaliSign app on the iPad and the member reviews and signs the documents directly on the iPad. If it's sent for remote signature, an email is delivered to the member with a link to the Signix e-signature system where the member is authenticated with out-of-wallet questions, explained Benson.
The member next creates an "e-signature," approves the documents and submits them back to the credit union. "They can also save a PDF version if they wish. If signed on the iPad, Signix can also be used to safely deliver the signed documents electronically to the member rather than providing a paper set of documents," said Benson. "Once returned to the credit union and put through quality assurance the documents are automatically indexed and archived in our document imaging system."
Along with the 40% virtual loan conversion rate, Benson said from the first full month of processing over 20 hours of branch personnel time was saved. "It's a very easy sell to tell members or prospective members that they can sit in their living room, at their office, or even at the airport and close their loan."
The speed of the system, he added, allows members to walk into the branch to apply for the loan and walk out with the funds in under 15 minutes. "Also, being able to make loans virtually anywhere with Internet access opens the door to opportunities Bellwether hasn't had in the past."
