Loan Management System for Credit Unions (SAM)Credit Union

CUDA System for Application Management (SAM)
Credit Unions in Ireland were going through a reducing loan book in 2017 and that’s when they decided to come up with a new product for a loan management system for the lending market with a longer-term product was Mortgage.

Credit Union Development Association lead the way and created a framework to work with Credit Unions and help them launch this product and manage the process. Together with the framework they also decided they will provide Credit Unions with a tool to manage the process.

Target Integration was given the task to work with CUDA team members and come up with the blueprints of this application which can not only manage Mortgages in short term but in long term become the central application management system for Credit Unions. 

In 2018, System for Application Management (SAM) was born. Sam is now used by a large number of credit unions to look after the end to end application process. The system has a loan eligibility calculator to help credit union loan managers to assess the eligibility of applications at an initial stage and then a full document management system and a workflow system. 

The workflow system allows external assessors to review the application and provide their feedback as well which works well for credit unions who don’t have internal capabilities to assess the merit of such applications.

Target Integration took the mortgage framework written by CUDA and created the specifications of the loan management system, came up with the security requirements, data architecture and developed the software as well as providing ongoing support on the application.

Further information on SAM is available by emailing Target Integration at info@targetintegration.com 

Client
CUDA
Date
2018
Services
Software Development
Our Role
Consulting, Implementation & Software Development

Challenge

Credit Union Development Association (CUDA) is a credit union-owned network that provides support facilities in the areas of regulatory compliance, risk management, shared services, and competency development.

New Process but No System

While Credit Unions started on this journey they didn’t have a system in place. A framework together with a big long application form of 20 pages was available. The application form provided all the flexibility but no consistency as it was easier to write anything in the form. There was no validation of the data and the process was prone to errors.

Bringing Users on Board

Credit Union users were distributed and working in various credit unions and hence it was difficult to bring them on board. This is where the relationship with CUDA worked and they were able to help by creating a group of SME (Subject Matter Experts) who helped in defining the future of the system.

Complex Workflows for Multiple Stake Holders

While the team was working on the application, they had to deal with the external stakeholders as well as internal stakeholders. The workflows were complex and so were the calculations involved. A validation from EU regulators was important for the system’s success as well.

Data Security

Although the data protection and security is the case with any CRM system implementation in the EU, but it was even more important when it came to dealing with the financial data of the customers. A number of different access levels were required with complex rules on who had access to what areas of the system.

Solution

Target Integration delivered all of these below-mentioned processes together with the best in class support infrastructure.

  • Complete System Specification Development
  • A self-assessment on Business Workflow Requirements
  • System Implementation
  • Financial Measures
  • Backend Infrastructure
  • User Onboard Training
  • Support Assistance

The system was named as System for Application Management (SAM).

SAM was integrated with the Credit Union Support Platform CUSP (read more here) and has scope to develop various different application types.

Requirements Gathering

As a phased approach, Target Integration rolled out a complete requirement gathering procedure to DevOps framework for SAM. It was not just the one-time activity as it involved more legacy software delivery processes where the team members were distributed across the organisation. 

For the proven implementation approach, proper automation workflow, & the right set of tools it was very important for the overall success of organisations’ strategic goals.

Implementation of the System & Development

An agile assessment & strategy was formulated to establish & consolidate improvements and scalability. To institutionalise the new approaches for SAM DevOps transformation framework implementation of collaborative IT system and phased developments were produced that span people, processes and collaborative tools.

A strategic approach to build a framework that combines pre-integrated, open-source was established to reduce time, decrease errors & improve cost optimisation were prepared and discussed for the final implementation.

External Users Reviews

Target integration provided with this robust solution of external users review.  A system to add an external assessor was also developed for Credit Unions that had no subject matter expert otherwise. It helped the client to get an extra sigh of relief and mindfulness before going ahead to finalise the mortgage loan application request.

Specifications of the System

Target integration provided a complete specification for the Mortgage system. The solution built on Odoo Community Edition version 9. It created a centralised system for tracking, monitoring and maintaining all the mortgage lending loan application requests.

A complete workflow for processing various operational iterations was produced and developed. Different modules and tools were developed to reduce redundancy and repetition of brokers that helped clients to easily, quickly and efficiently identify appropriate lenders as per the commission and discount rates.

Also, a mortgage calculator was developed for easier calculations on mortgage pricing and interest rates.

Training & User Onboarding

Target integration helped the Credit Union team members to get well versed with the new unified & centralised system. The expert consultants helped Credit Union members to understand the new digital operations and process workflow so that every member of the team can be on the same page. 

It was a necessary thing because it significantly improved efficiency in client’s operations. It facilitated them to focus on driving more business with automation. Also, due to manual error elimination, now the end to end mortgage support services had a low cost.

Reports and Business Intelligence

Target Integration provided reporting as a business intelligence feature. The complete data in the system can be compiled from borrowers submitted documentation package. This helped the Credit Union to cross-check whether the right & accurate data is exhibiting and flowing within the system or not? Based on these reports, they can take necessary steps of precaution and set an advisory for the broker who is not following certain specific data guidelines.

Additionally, the daily reporting opens various specific details for the loan officers such as how many calls they did? How much revenue is generated, etc.? This comprehensive report can then be presented to top management to calculate & determine the compensation or commission that each loan officer/ assessor or any other resource in the company is eligible for.

Therefore, the reporting created transparency in the loan management system through SAM which created an additional layer of validation, verification and a safety net to secure the complete lending procedure of lending mortgage loan to people.

Results

Application Management Automation

SAM not only automated all the process of management for Mortgage lending as a short term objective but justified itself as a central application management system as a long term goal. Due to automation, the mortgage lending operations that involved highly document intensive challenges had a seamless loan processing mortgage lending solution. 

As a result, many challenges like a manual review, annotations, data validation errors, evaluation of paper files, time-consuming workflows due to manual retrieval of necessary documents, cumbersome underwriting processes, monitoring of the status of transactions, leading to delayed customer responsiveness were eliminated. 

Moreover, the right evaluation on Mortgage calculation, faster closing of loan application requests were all possible now.

Successful Launch of Credit Union Mortgage Product

SAM was launched successfully under Credit Union Mortage Product. It was amongst the best practice mortgage frameworks that provided Credit Unions all the necessary tools to offer consumer mortgage loans.

It is defined as a workflow management system for the Mortgage lending industry that ensures a consistent & compliant approach. It included all the necessary supports and access to SAM (System for Application Management). 

Not only this, but this framework included all optional access to external file assessment by an industry expert for an extra piece of mind. Most importantly, it has a centralised legal function that was available at bulk discount rates. It helped Credit Unions to offer Mortgages effectively, efficiently, & compliantly.

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