CU Direct’s Innovation Lab is plugging away on two projects – a consumer portal and an automated loan package verification solution – slated to launch by yearend, Brian Hamilton, vice president of innovation, told Auto Finance News.
The loan package verifier, which is powered by machine learning, will speed funding time between credit unions and dealers by as much as 50%, according to early internal testing, Hamilton said. Currently, the process can take “hours, if not days, on end,” he noted.
Automatically, when a package is sent to a credit union from a dealer, the system will identify the documents – such as stipulations, paystubs and other supporting documents – to verify the package is complete. Then, it will sort, read and upload the data, finally running the business rule logic to determine the loan-to-value ratio.
“It’s a faster response time, and nobody’s wasted any time on the credit union end,” Hamilton said. “Preliminary testing on this is showing us a lift of 30% to 50%, meaning that a single processor can now process 130% to 150% of the numbers of contracts they churn through in a day, not to mention the improved service levels from dealers getting responses much quicker if something’s incomplete.”
Meanwhile, the innovation lab also is developing a consumer portal for credit union members, where they can access a single place, online or on mobile, to see information about their loan, upload any documents and communicate with the credit unions and dealers through a compliant and secure platform.