By Wes Horbatuck
Today’s mortgage market is a bit spooky, like navigating a corn maze on a dark night. After a couple of years of scaling up for high origination volumes amid historic low rates, you’re still reeling from scaling back production under the weight of the highest mortgage rates in decades.
You start to wonder, “How do we navigate this maze? Are there tools or technologies that can help us survive these BOOm and bust cycles?”
Here are three ways credit union lenders can leverage technology to stay on course through these market twists and turns:
1. Invest in Technology – It’s Less Daunting Than You Think
This is an ideal time to evaluate and upgrade your infrastructure, setting yourself up for when volumes rebound. Think of it as harnessing the power of technology to conquer market uncertainties.
Investing in technology during a down market might seem counterintuitive, but there’s an upside. With loan volumes down, credit unions have the luxury of time to assess their technology options without the constant pressure to keep up with demand. It’s like exploring that spooky corn maze with a flashlight—less scary, more revealing.
Transitioning to new technology during this period can also be easier on staff. When loan officers aren’t overwhelmed with a nonstop flow of loans, they have more capacity to adjust to new systems. Credit unions should use this time wisely and make thoughtful decisions about their tech infrastructure.
2. Simplify Your Tech Stack – The Efficiency Elixir
Consolidating your technology into an all-in-one platform can streamline operations and cut costs. A unified tech stack is like brewing up a magical elixir that enhances efficiency and cuts down on overhead.
In a slow market, reducing costs and complexities associated with vendor management, integration, and system maintenance is crucial. Consider the “build versus buy” approach: which systems are essential to your unique borrower experience and worth developing in-house? For other needs, is it better to let a technology provider handle the development and upkeep? It's like choosing between crafting your own potion or seeking a wizard’s brew.
Credit unions can benefit from tech platforms that offer comprehensive solutions. When everything integrates seamlessly, you avoid the hassles of piecing together disparate systems that may not work well together.
3. Automate, Optimize, and Delight – The Transformation Spell
Review your processes to find ways to serve members more effectively. While creating a seamless borrower experience isn’t as simple as waving a wand, it’s a step toward transforming your operations.
Regardless of market conditions, automation helps credit unions save time and reduce costs. Imagine spending less time on manual tasks like data entry and document sorting and more time building relationships with members. Automated workflows allow team members to focus on moving loans through the process efficiently rather than getting bogged down with repetitive tasks. It’s like learning the magic of spell casting to speed things up.
Configurable workflows can be tailored to suit your credit union’s unique needs, helping to improve both employee satisfaction and borrower experience. The Empower® LOS, for example, comes with pre-configured workflows based on industry standards but is flexible enough for customization, offering scalability for both low and high loan volume periods.
While there may not be any shortcuts through the market maze, having the right tools and strategies will make the journey smoother and more manageable. With the right approach, you’ll navigate the market’s twists and turns more confidently, finding your way to the other side.