TUSCON, Ariz.—By integrating cloud-based remote eSignatures into lending document processes here, Hughes Federal Credit Union has hit milestone goals, including increasing indirect lending volumes by 27%.
"The Centralized Lending Department went from a no-funding to the single largest direct-side funding operation within the credit union in just a few months," said Hughes FCU's VP of Lending Andrew Britton. "Members are eager to take advantage of a technology that puts them in the driver seat to sign their loan documents at their convenience."
The technology Britton referenced is Linden, N.J. technology vendor IMM's cloud-based remote eSignature solution called "Document Exchange."
"Hughes has a strong organizational philosophy that supports process automation, and recognized eSignatures as part of that strategy to take employee efficiency, cost reductions and member service to a higher level," said IMM'S EVP John Levy. "eSignatures have enhanced the members' perception of the entire transaction experience in a way that promotes unmeasurable, intangible benefits to the credit union in good will."
Efficient Loan Processing
Prior IMM's platform, the $808 million CU, supporting 90,000 members, had a loan processing platform that took approximately three weeks.
Today, loans are processed in two hours. And by using password-based authentication, the cost per loan is now de minimus with remote digital signatures in place, noted Britton. This, he said, replaced the $40 per loan express mail option. Britton said indirect lending volume has increased by 27% due to the CU's ability to fund loans through a remote digital signature channel. He added that Hughes FCU also has a higher loan closure rate.
"Hughes FCU now reports that 90% of centralized lending credit cards and 50 percent of centralized lending non-credit card loans are funded by remote digital signature," said Britton.
By moving from paper-based processes to an electronic environment, Britton said that the time and money previously spent to create and mail paper loan packages has been eliminated. "Hughes FCU has a calculated annual cost savings of nearly $107,000."
Due to the success of the offering, Hughes FCU is expanding upon its remote eSignature deployment and application process across non-lending document solutions for member services, operations, call center and collections.
"Hughes FCU is also taking it to front office branch staff to expedite funding of approved loans without members having to make a return appointment to the branch," noted Britton.
