Strategic Link Partner, Eltropy Helps Credit Unions Improve Members’ Lending Experience

Text solution streamlines the loan application process and improves response rate for collections.

Eltropy Logo1/29/2019

Lending money and collecting debt — two sides of the same coin — are ancient practices that need a modern makeover. Loan application processes are cumbersome and time-consuming, while debt-collection attempts are largely ineffective. For credit unions, at least a partial solution centers on more effective and convenient communication with members that could lead to better outcomes.

Solution: Leverage an integrated digital technology procedure to streamline the lending process and enhance the member experience.

“Eltropy’s platform brings the power of text messaging to credit unions in a compliant and secure way for multiple-use cases, including lending and collections,” said Northwest Credit Union Association VP of Strategic Resources, Jason Smith. “Eltropy’s solution helps Northwest credit unions improve their lending and collections results and overall profitability.”

Eltropy’s text messaging and analytics platform offers multiple advantages for lending:

  • Elicits quicker member responses because of the speed and convenience of text messaging.
  • Allows credit unions to use secure links in text messages to collect required documents. Examples include a driver’s license or a paystub. This ability to upload documents provides a big edge over current lending processes.
  • Works with DocuSign to secure signatures digitally.
  • Eliminates delays by using secure links to send documents over text messages, relieving both the lender and the member of the burden of printing forms and managing paperwork.
  • Integrates with a credit union’s core banking and loan origination systems. Check out a recent blog on how Eltropy integrates with Symitar.
  • Sends automatic real-time notifications to loan officers when loan documents are received.
  • Offers two-way messaging between loan officers and members when a deeper level of communication is required.

Collections

With charge-offs on the rise, credit unions increasingly need to consider the individual circumstances of defaulting members. Typically, when a member is unable to pay debt over time, the credit union turns to a collection agency, a practice that has proven to be ineffective. The biggest pain point is a low member response rate resulting in a poor collection rate.

Solution: Use a two-pronged approach, one for simple lateness and the other for bigger repayment problems.

First, send automated notifications and follow-ups using text messaging to elicit quicker responses. Eltropy’s analytics offers real-time feedback on how well members are engaging. Second, leverage text messaging to engage members individually to better meet their needs. By understanding a member’s financial hardship, credit unions would be empowered to work with that person on a resolution, such as agreeing on a manageable repayment plan. Eltropy’s two-way messaging capability supports this scenario.

A text messaging platform offers credit unions clear benefits for both lending and collections: ease of use, a higher response rate, and a superior member experience with a personalized focus.

For more information about Eltropy, contact Northwest Credit Union Association VP of Strategic Resources, Jason Smith. To learn more about Strategic Link’s partnership with Eltropy, visit its webpage.