Chal­lenge: Keep­ing up with mem­bers dur­ing loan process

CREDIT UNION: NORTHROP GRUMMAN FCU CAT­E­GORY: LOAN ORIG­I­NA­TION NOM­I­NATED BY: LSI

Credit Union Journal - - Special Report - BY W.B. KING

WHILE NORTHROP GRUMMAN FED­ERAL Credit Union’s mem­bers were re­ceiv­ing com­mu­ni­ca­tion that their loans were ap­proved, there was a gap con­nect­ing mem­bers to loan pro­ces­sors.

“This led to many calls from mem­bers look­ing for next steps or in­for­ma­tion and we were spend­ing a sig­nif­i­cant amount of time work­ing to catch up with our mem­ber af­ter they had been ap­proved,” said Northrop Grumman FCU Vice Pres­i­dent of Lend­ing Cindy Phillips.

To rem­edy the sit­u­a­tion, Phillips and her team reached out to the El­gin, Ill.-based LSI (for­merly Lend­ing So­lu­tions, Inc.). The Gar­dena, Calif.-based credit union adopted LSI’S Hot Trans­fer pro­gram.

“LSI and Northrop Grumman FCU have de­vel­oped a strong part­ner­ship,” said LSI Vice Pres­i­dent of Sales and Mar­ket­ing Jeff Ste­wart. “The ef­fi­cien­cies and in­creased ef­fec­tive­ness of the re­sources, which Northrop Grumman FCU in­vests in its lend­ing depart­ment, have been sig­nif­i­cant.”

In or­der to im­ple­ment the LSI Hot Trans­fer so­lu­tion, an “ex­clu­sive in-bound ex­ten­sion” was cre­ated for LSI em­ploy­ees to reach Northrop Grumman FCU’S em­ploy­ees, which “clearly iden­ti­fied” that the com­mu­ni­ca­tion was an LSI Hot Trans­fer.

“We con­firmed the script­ing with the LSI em­ploy­ees and our em­ploy­ees, and in one quick 30-minute train­ing made sure that all of our stake­hold­ers knew what to an­tic­i­pate from the new process,” said Phillips. “Then we turned on the ser­vice and started re­ceiv­ing mem­ber calls that same day.”

The re­turn on in­vest­ment was quickly re­al­ized, noted Phillips. The credit union’s in­ter­nal call cen­ter, for ex­am­ple, re­ported that the num­ber of calls from mem­bers look­ing for a loan pro­ces­sor to dis­cuss their loan were “quickly re­duced” to al­most a “non-ex­is­tent num­ber.”

“The use of the LSI Hot Trans­fer pro­gram al­lows our in­ter­nal em­ploy­ees to fo­cus on fund­ing and al­lows LSI em­ploy­ees to fo­cus on loan in­ter­view­ing and de­ci­sion­ing,” said Phillips. “The com­bi­na­tion of the two skill sets, con­nected through the Hot Trans­fer pro­gram, has yielded great ben­e­fits in our mem­ber ser­vice.”

The credit union’s loan ap­proval per­cent­age rose from 62 per­cent in 2016 to 66 per­cent at the end of the first quar­ter in 2017. A 12 per­cent in­crease in used auto loan ap­proval (from 42 per­cent to 54 per­cent) was also re­al­ized.

“The in­crease in fund­ing per­cent­age out­paced the in­crease in loan ap­pli­ca­tion per­cent­age,” said Phillip. “There was a de­crease in the length of fund­ing time­lines and the largest per­cent­age of zero-day-fund­ing.”

Mem­bers of the Northrop Grumman FCU lend­ing team.

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