By Wes Horbatuck, Senior Vice President of Marketing at Dark Matter Technologies
Credit unions have long been recognized for their member-first approach, community focus, and commitment to trust and transparency. But in today’s lending landscape, those values must be supported by modern, efficient technology, especially when it comes to your loan origination system (LOS).
Whether you're upgrading your current system or exploring LOS options for the first time, the selection process can be overwhelming. You’re not just picking software — you’re choosing a core partner that will impact your lending efficiency, compliance, member experience and bottom line for years to come.
As you approach this challenge, there are three “must-have” elements to remember. Each can help reduce costs, increase productivity, and keep your credit union competitive in a fast-paced market.
1. Automation and Efficiency
Outdated manual processes, bottlenecks and repetitive tasks can slow everything down, making it harder for your team to provide the service your members expect. That’s where automation comes in. A modern LOS should offer secure, scalable automation for critical steps like document collection and verification, task assignments and workflow management, conditional logic for decisions, compliance checks, and underwriting.
Using the dynamic, task-based automation built into the Empower LOS allows Lake Michigan Credit Union (LMCU) to shave about a week off processing times for each loan, increasing the quantity of mortgage loans the credit union can process each month. “Where everything used to be done manually by employees, now the system can automatically execute several tasks simultaneously. The heightened efficiency has increased our mortgage team’s ability to handle and process all the opportunities they are presented with while providing outstanding service to our members by closing their loans faster,” said Chief Lending and Experience Officer Eric Burgoon.
Before deciding which LOS offers your team the most advantageous workflow, evaluate where your lending team experiences the most friction. Are there delays in document uploads? Is your underwriting process still largely manual? These are the areas where a well-designed LOS can make the most significant difference. Talk to potential vendors about how their automation tools specifically support credit unions. Can business users configure automated workflows, or does every change require IT intervention?
The more autonomy your staff has, the more responsive and efficient your lending process becomes. Automation doesn’t mean sacrificing personal service. On the contrary, it should give your team more time to focus on high-touch interactions that build member trust.
2. Integration Capabilities
Your LOS is just one part of your larger digital ecosystem, and its ability to integrate seamlessly with other tools can make or break your lending experience. Your members don’t want to re-enter information they already gave you. Your team doesn’t want to switch between disconnected systems. That’s why integration capabilities are critical. Look for an LOS that connects easily with your core banking system, credit bureaus, eSignature and eDocument solutions, loan pricing engines, point-of-sale (POS) platforms, and document recognition and AI-based data extraction tools.
Some LOS providers have native integrations or in-house products that eliminate the need for third-party workarounds. Others offer open APIs or middleware tools that simplify data exchange. Either approach can work, and what matters most is that the system supports efficient, real-time communication between platforms. When evaluating vendors, ask: What integrations come out of the box? Can we add or change integrations without expensive custom development? Are there any limitations with our current tech stack?
The smoother your integrations, the less manual work your team has to do, and the faster your members get their loans. AMOCO Federal Credit Union in eastern Texas was impressed with the easy implementation of the Empower LOS and its native integration with the MSP servicing platform from ICE Mortgage Technology, which gives AMOCO the added advantage of seamless loan data transfer between its origination and servicing systems. “With robust automation, fully integrated solutions, and the support of a proactive and highly responsive team, the Empower LOS had everything we needed to grow our mortgage products and services and serve the financial needs of members in any market conditions,” says EVP of Lending Eddie Bonilla.
3. Scalability and Flexibility
An LOS should adapt to your credit union’s needs, whether you’re processing 50 loans a month or 5,000. It should also allow your business team, not just your developers, to configure workflows, set business rules, and adjust to changing compliance standards. Ask vendors: How easy is it to make updates without relying on IT? Can we customize the member experience by loan type or channel? Is the system designed to handle increasing loan volume and complexity?
In the case of AMOCO, Dark Matter Technologies equipped the credit union with essential tools for its present, but also paved the way for future expansion. “Among other strategic shifts, we’re preparing to transition from portfolio lending to a secondary market strategy,” says Bonilla. “As we anticipate AMOCO’s future, we have confidence that Dark Matter will adeptly meet our evolving needs.”
The goal is to future-proof your investment. As your credit union grows, your LOS should grow with you, without requiring costly replacements or excessive development time.
The Bottom Line
Choosing an LOS is one of the most strategic decisions your credit union can make. By focusing on automation, integration, and scalability, you can ensure the system you select reduces loan origination costs, empowers your team, enhances the member experience, and positions you for long-term success.
As you contact LOS vendors, evaluate how each platform supports your credit union’s unique needs. The right LOS won’t just process loans faster — it will help you deliver on your mission in a digital-first world.