FORT WORTH, Texas — For many online banking transactions, "taking" and "holding" are two different concepts.
For example, a credit union can "take" an online loan application, but without a secure e-signature they can't immediately "hold" the application.
"We had been opening accounts online and taking loan accounts online. We had the application piece and the underwriting and sales pieces covered, but what we didn't have a way to complete the sales process," said Tim Grove, vice president of systems development at EECU Credit Union.
Electronic, But Still Cumbersome
But with no tool to facilitate the execution of the transaction, the process became cumbersome and time consuming for both members and employees.
"When a member wanted a loan online, we would have to print documents for them and fax or mail them," said Grove. "Even with secure email, on the members end, their options were limited. We were looking for ways to make it more likely that the loan would be completed."
It was in 2011 that Grove began looking at solutions that could scale to the $1.6 billion credit union's evolving needs. Among e-sign vendors vetted were IMM and DocuSign.
"The key benefit for DocuSign was that they integrated in with our lending and account opening solutions, which is by MeridianLink," said Grove.
At first, EECU, supporting more than 178,000 members, used DocuSign only for account openings. The solution was used in branches, the call center and online.
"For in-branch, if members are opening a joint account and only one person is there, we could use DocuSign to send it to the member who is not there," Grove said.
In February 2013, the lending process was added to the platform. This required switching from internal open-end lending to closed-end lending. For regulatory reasons, EECU switched to the latter, which made DocuSign all the more important, according to Grove.
The proverbial proof of success is in the pudding. Since the official launch in October 2011, the following metrics have been identified.
During all of 2012, for example, the credit union completed 613 envelopes or 51 per month. In 2013, after the addition of the lending tool, 4,864 envelopes were completed or 407 per month. Through the end of April 2014, EECU has completed 2,064 envelopes or 516 per month.
"We haven't been able to line up the increase in lending with the use of DocuSign, but I will say that March of this year we had a record lending month — more lending that month than in any other time in our history," said Grove.
From a technology perspective, Grove said the "heavy lifting" in relation to integration was shouldered by MeridianLink and DocuSign. The vendors collectively handled the architecture, mapping and development of the solution.
Since EECU wasn't the first client, a methodology, including a proven secure ID verification feature, was in place. Grove explained that MeridianLink creates the documents, which are securely sent from the vendor to the member/credit union and sent back again to Meridian Link. Initially, Grove said EECU conducted internal beta testing, a period that lasted a few months to ensure operations was seamless and that staff understood the application.
Mobile And Next Steps
To date, EECU offers the DocuSign solution "online." However, new mobile applications are being developed with a slated June release. This new solution is being developed by MeridianLink and Digital Insight. Essentially, Grove said it will be a "mobile friendly" web page formatted for smart phones.
As far as signing the documents, he said, members can currently do so on an iPhone, iPad or other device. These documents, he noted, are sent to an email address and members can retrieve those messages on any device.
"There are some members we suspect — statistics indicate — whose mobile phone/internet connection might be their only household internet connection," said Grove. "So we certainly want to be able to serve those people in a way that is convenient for them."
Along with mobile initiatives, EECU plans to add "DocuSigning" to other banking transactions and internal human resources forms for its 330 employee-related notices and disclosures. "Our business services manager described DocuSign as her new best friend," said Grove.
