MADISON, Wis.-Credit unions that use CUNA Mutual's LoanLiner.com loan application system have originated $39 million in loans since smart phone and tablet loan applications were introduced in June.
More than 90% of the CUs that use LoanLiner.com have mobile capability, and 9,212 loan applications were initiated between June 30 and mid-September, more than 4,000 of which were submitted for approval.
"That's an average completion rate of about 49%, which is well above the industry norm for an internet application," said John Putman, CUNA Mutual's director of consumer lending.
The push for smart phone capability began in 2009 after CUNA Mutual did a rewrite of LoanLiner.com that allowed it to track the browser members were using.
"We started looking at the results and we were startled to see that thousands of applications were being initiated from mobile devices-especially smart phones," said Putman.
The site senses the incoming browser, and if it's a mobile browser the site is formatted for the appropriate device. Putman said CUNA Mutual considered creating a device-specific app, but there was no way to ensure that the member was always using the most compliant version of the app. "There are some pretty complex disclosure requirements," Putman explained.
Both smart phones and tablets can access the LoanLiner.com functionality, and Putman said that 46% of the applications submitted have come from Android devices, compared to 53% from Apple devices. Of that 53%, he said, 29% have come from iPhones, 30% from iPads and 4% from iPods.
At present, credit unions that offer smart phone loans via LoanLiner.com are only offering consumer loans. "Real estate loans are more complicated because of the disclosure requirements" and the smaller screen.
Putman added that real estate functionality will depend not just on how regs evolve, but on how the devices evolve as well. Because tablet devices allow for larger displays, disclosures can be seen more easily, which may mean real estate applications are eventually an option.
Putman said LoanLiner.com provides a loan decision in "about six seconds."
Credit unions can further provide members instructions on the next step in the process, such as pressing a button on the device to activate the GPS function for directions to the nearest branch or to call the CU.
More enhancements are planned for 2012-Putman kept mum about specifics-but said that a social media function will also be added by the end of 2011.
CUs that subscribe to LoanLiner.com automatically get smartphone capability as part of the package, said Putman, though the cost is calculated according to asset size, plus the additional transaction fee. A CU with $500 million in assets would pay about $5,000 per year, including all fees, he said.
