Lenders Find the Right Connections for a Modern User Experience

woman sitting in front of yellow background with API graphic
By Susan Hartsock

3 minutes

Both technology and solid partnerships boost success.

Sponsored by Origence

Much has been said about the power available to lenders and their technology partners thanks to open software architectures and modern application programming interfaces. A significant amount of our work focuses on making the most of these powerful tools for the benefit of our financial institution clients.

These tools have made an impact on the user experience, both for lenders and their customers, with faster transactions, more efficient fulfillment and higher customer satisfaction.

We attribute this success to a focus on the following three areas:

1.  The Power of Strategic Partners

The power to connect systems will not deliver results if APIs are used to connect the wrong systems. It’s not just about the technology; it’s also about the partner. Making the right choice will greatly benefit the institution’s modernization efforts.

It can be challenging for a lender to find and evaluate potential partners. Much due diligence is needed, and relationships must be well-defined and nurtured.

When a lender’s technology partner can offer complementary resources that support the lender’s objectives, it opens more possibilities, a smoother transition, and a faster solution than if the institution took on this challenge alone.

In our case, we spend much time carefully evaluating potential partners to ensure we deliver the tools our lenders need.

We see more API-driven solutions hit the market every month, and we evaluate them on behalf of our partners, knowing that every new connection has the potential to make an existing process better.

2. Making the Connection to the Core Systems

The options credit unions have for external partners can be limited by the connections already available within their core systems or by the bandwidth of their core system providers. No institution wants to be limited by the capabilities a developer delivers off the shelf.

Today's most popular core systems are built on open architectures that allow lenders to access the technologies they want. Still, making those connections often falls to non-core partners.

Any partner a lender chooses must have a good relationship with the developers of their core systems. This can help reduce friction and ensure that required changes can be made quickly. For instance, lenders often require new workflows to be developed to correspond to strategic process changes.

3. Capitalizing on Economies of Scale

Successful technology developers attract larger user bases, which often translates into economies of scale for their customers. Lenders may prefer technology partners that have achieved some scale and are willing to pass on these benefits.

Companies that serve hundreds of institutions will have industry insight into both potential problems and opportunities. In addition, they will have seen many API-powered workflows and will know what is possible. This insight makes it easier for lenders to create their ideal process.

For example, Origence’s experience working with over 16,000 auto dealers nationwide has provided us with a wealth of knowledge of best practices related to auto lending, technology, lenders and dealers.

Key Benefits Delivered Through APIs

Technology is a great enabler and when used properly, it delivers advantages that can create competitive leaders. Among these is the customer experience, the driving force in borrower and member satisfaction.

There are other benefits as well. Lenders seek to work with the best partners but don’t always have the time to seek them out and evaluate them. Teaming with a provider that is committed to assessing, building and delivering valuable technology connections puts lenders on the right path to cost-savings, efficiencies and a better customer experience.

Susan Hartsock, senior director of strategic alliances for CUES Supplier member Origence, has 25 years of industry experience. Her expertise includes increasing efficiency in the loan manufacturing process. She has extensive experience with document capture and electronic content management. Her career ranges from developing and managing industry technology relationships to investing time in serving on industry boards.

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