Pentagon Federal Credit Union will be granting “omnichannel approvals” once it completes a company-wide migration to a new loan origination system, said Ivan McBride, VP of auto lending products and sales.
The LOS will enable PenFed to approve customers for one type of loan, say an auto loan, and approve them for a second loan — perhaps a credit card, personal loan or home equity line — at the same time.
“It was very challenging with our current system to deliver an approval on another product with the build of just one application,” McBride said. “This system will allow us to enhance or optimize our underwriting in a way that will give us the comfort level that we’re able to make offers on other products that we’re currently not able to do today.”
Some consumer banking products have already migrated, such as credit cards and personal loans. The remaining consumer banking verticals, including auto, will transition to the new platform by early 2020.
The new system will allow PenFed to deepen relationships with members. “Our current system is, for lack of a better [term], an old and antiquated technology,” McBride said. “Although it’s very functional for what we do now, I think this brings us a greater level of capability.”
