Royal Credit Union

Royal Credit Union, based in Eau Claire, Wis. is a fullservice credit union with 24 locations in Wisconsin and Minnesota and over 600 employees. The credit union is currently ranked 8th for highest volume of business loans for credit unions nationwide, maintaining a $750 million business loan portfolio and managing $2.2 billion in assets. 

To support its continued portfolio growth, Royal Credit Union required a loan origination system that would automate the loan origination lifecycle for smaller business credit requests. Doing so would drive consistencies and efficiencies in the lending process, serve more small business Members and allow for more efficient resource allocation.

Additionally, for today’s banks and credit unions to remain competitive, offering consumers a variety of options for engaging with their financial institution is crucial. In fact, many institutions already allow consumers to open accounts and manage their money through multiple channels. This heightened level of convenience has driven the industry to evolve its approach to business lending as well. Likewise, Royal Credit Union sought to establish a process for accepting business loan applications online.

The credit union aimed to increase staff efficiencies and enhance the member experience by automating the process for receiving small business loan applications and prospective borrower information. This was a necessary step for facilitating Royal Credit Union’s future loan growth, requiring a solution that would reduce the time employees spent manually inputting data, scanning documents, emailing forms and requesting additional material from loan applicants. One of the credit union’s key objectives in streamlining its small business loan application process was to ensure that more accurate, complete loan applications were submitted to underwriting, and ultimately, to deliver faster decisioning for applicants.

 

 

With Baker Hill's loan origination system, Royal Credit Union has effectively streamlined its small business loan origination process and substantially reduced the time to approve or deny a loan application. The credit union can also determine the level of financial statement analysis required to match its risk appetite. This saves time for both credit union team members and prospective borrowers while also supporting expedited decisioning. In fact, for loan applications submitted before 3 p.m. on a business day, the credit union can offer a same-day decision. Royal Credit Union reports that over 90 percent of online loan applications are decisioned in less than 24 hours. 

Prior to implementing Baker Hill solutions, Royal Credit Union processed more than $10 million in business loans; after both solutions were implemented in 2014, the credit union processed more than $31 million small business loan applications through Baker Hill’s small business loan origination platform. 

Selecting a loan origination system is one of the most important decisions your financial institution will make.

Learn how to Choose the Right Loan Origination System