MBL vol­ume surges af­ter au­tomat­ing loan orig­i­na­tion


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

WHEN IT COMES TO LOANS, ROY-al Credit Union treat all mem­bers equally, but in do­ing so em­ploy­ees spend an in­or­di­nate amount of time an­a­lyz­ing small busi­ness loan re­quests.

“We needed to be­come more ef­fi­cient to serve all mem­bers bet­ter,” said Royal Credit Union Vice Pres­i­dent of Busi­ness Lend­ing David Thoe.

The $2 bil­lion Eau Claire, Wis.based credit union is ranked sixth for high­est vol­ume of busi­ness loans for credit unions na­tion­wide and cur­rently main­tains a $708 mil­lion busi­ness loan port­fo­lio. In an ef­fort to make loan ap­pli­ca­tions eas­ier, the CU turned to the Carmel, Ind.-based Baker Hill, a loan orig­i­na­tion soft­ware and bank lend­ing so­lu­tions firm.

“It is im­por­tant to set clear ex­pec­ta­tions and re­quire­ments for fi­nan­cial in­for­ma­tion prior to im­ple­men­ta­tion. We looked at our work­flow and gath­ered in­for­ma­tion from pro­duc­tion, un­der­writ­ing and doc­u­men­ta­tion to make the changes ef­fi­cient and ef­fec­tive for all ar­eas,” said Royal CU Vice Pres­i­dent of Risk Man­age­ment Glen Ken­ni­son. “While the B2B prod­uct makes rec­om­men­da­tions all fi­nal de­ci­sions and loan struc­ture are made by a busi­ness loan of­fi­cer.”

Royal im­ple­mented Baker Hill’s Nextgen Small Busi­ness Lend­ing plat­form to au­to­mate the loan orig­i­na­tion life­cy­cle for busi­ness loans less than $300,000.

Fol­low­ing its ini­tial suc­cess with Baker Hill, Julie Frey, vice pres­i­dent of busi­ness loan op­er­a­tions and ser­vices, said the credit union im­ple­mented the data in­te­gra­tion and cus­tom­ized on­line loan ap­pli­ca­tion so­lu­tions as well.

Prior to im­ple­ment­ing Baker Hill so­lu­tions, Royal pro­cessed more than $10 mil­lion in busi­ness loans for the year. Af­ter both so­lu­tions had been im­ple­mented, the credit union pro­cessed more than $30 mil­lion in busi­ness loans through Baker Hill’s small busi­ness loan orig­i­na­tion plat­form, and that has con­tin­ued to make strong gains.

Thoe ex­plained that Royal Credit Union ex­pe­ri­enced con­tin­ued growth for 2016 pro­cess­ing a to­tal of 644 new loans, which equated to ap­prox­i­mately $146 mil­lion in new ex­po­sure. And, 328 of those loans were pro­cessed us­ing Baker Hill Nextgen Small Busi­ness Lend­ing.

“Royal Credit Union has also sub­stan­tially re­duced the time to ap­prove or deny a loan ap­pli­ca­tion,” said Thoe. “Be­fore us­ing Baker Hill, it took three to five days to process an ap­pli­ca­tion, but now, pro­cess­ing time has shrunk to just over one busi­ness day.”

Royal Credit Union’s Glen Ken­ni­son, VP Credit Risk Man­age­ment (stand­ing left), Julie Frey, VP Busi­ness Loan Op­er­a­tions and Ser­vices (seated) and David Thoe, VP Busi­ness Lend­ing Man­ager.

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