MADISON, Wis.-It's a mistake to assume that a credit union can't get into mobile lending if it doesn't have a smart phone app, said one expert on the topic.
John Putman, lending business systems director at CUNA Mutual Group, said in a recent CUNA Mutual webinar that while creating, distributing and maintaining a dedicated app can be expensive and time-consuming, configuring a CU's website and online loan applications for smart phone use is often a more effective solution.
CUNA Mutual's own LoanLiner.com site has been configured for smart phone loan applications and saw nearly $40 million in loan originations via mobile device during its first three months configured for smart phones and tablets ("Smart Phone, Tablet App Leads To $39M In New Loans In Just Months," October 10, 2011). Today, 18% of LoanLiner.com applications arrive via mobile devices.
"Whether you're ready or not, if your credit union has an Internet loan application, it is already being accessed by mobile devices," said Putman, adding that "the community bank down the street has an Internet loan application-you probably need to as well."
Only Limit? Imagination
Putman pointed out that CUs engaging in mobile lending are using a variety of methods to promote it, including everything from old-fashioned radio ads to scanable QR codes. "Credit unions are limited only by their imaginations," he said.
Putman recommended keeping applications as short as possible and limiting the number of questions to only the information required to receive an underwriting decision. He noted that applicants using LoanLiner.com on smartphones generally receive a response within 10 seconds. But, he said, they are never declined a loan via a mobile device-applications are either approved or referred to the CU for more information.
Putman particularly stressed the long-term strategic importance of adapting a mobile lending platform. "If credit unions want young people to work with them and use them as their primary financial institution, they have to offer products and services using the channels they prefer."
