From Manual to Digital: Why Credit Unions Need Document Processing Automation

February 11, 2025

In the competitive world of auto financing, delays in loan approval and delivery can significantly impact a credit union’s success. Dealers often engage with whoever offers the first loan approval, swaying buyers to take the quickest offer. Therefore, leveraging technology to deliver rapid, efficient service is crucial for lenders.

A survey by Wolters Kluwer reveals that nearly 63% of lenders and dealers reported it takes longer than 30 minutes to complete a sale when signing all documents manually. In contrast, this process is considerably faster with digital tools. Consumers and auto dealers now expect fast, reliable, and user-friendly experiences. With that in mind, the efficiency of document processing automation (DPA) to enhance the buyer experience cannot be overstated.

DPA offers a more efficient and standardized lending approach, speeding up loan origination, improving member and dealer experiences, and helping credit unions stay competitive. It allows staff to focus on valuable tasks, manage high volumes, and ensure smooth operations during busy periods.

What is document processing automation?

Document processing automation uses technology to automatically handle, analyze, and manage documents within the lending process. By employing artificial intelligence (AI) and machine learning (ML), DPA reduces manual tasks, improves efficiency and accuracy, and speeds up workflows in various business processes.

Key aspects of an effective DPA solution:

• Data capture: Automated systems with optical character recognition and machine learning algorithms can quickly and accurately extract data from documents like invoices, forms, and contracts.
• Data validation: After capturing data, automated systems validate it using predefined rules or databases, checking for inconsistencies and verifying income details with financial databases.
• Workflow automation: DPA solutions can automate the movement of documents through processing, approval, and storage stages, reducing manual effort and opertional bottlenecks.
• Compliance and security: Ensure data follows regulations, adheres to policies, and protects sensitive information with security measures like encryption and access control. Leverage these detailed records of data handling to support compliance audits and regulations.
• Efficiency and accuracy: Automate repetitive tasks, reducing errors and speeding up processing, improving efficiency and accuracy, and freeing staff to focus on more valuable tasks like enhancing member experiences.
• Scalability: Effectively manage your document volume and easily scale to meet higher demand without extra resources or costs, ensuring lenders stay efficient and provide quality service as they expand their operations.
• Streamlined operations: Supercharge operations by extracting important data, executing funding rules, creating custom document packages, and ordering forms. Reduce the time contracts spend in transit with dealers to enhance operations and dealer relationships.

How does DPA improve lending?

By implementing DPA to validate and compare documents, credit unions can reduce time spent on stare-and-compare manual processes, which are more prone to human errors. DPA can enable lenders to catch mistakes and miscalculations on paystub evaluations, saving time and providing new levels of confidence. AI algorithms with predefined rules and guidelines ensure impartial and consistent handling of every loan application. Compared to manual methods, which can vary due to timing and interruptions, DPA is precise and consistent, applying objective criteria and reducing errors.

DPA can flag potentially fraudulent paystubs, a crucial feature given that income and employment fraud cost auto lenders nearly $5 billion in 2021. Unlike staff who must meticulously check each page, DPA can identify fake paystubs in seconds with 99.8% accuracy, making it essential for combating fraud.

Additionally, DPA speeds up processing and reduces human errors by extracting and digitizing data, identifying discrepancies, and flagging them for review. For instance, AI can recognize variations in names and subsidiary listings on paystubs, quickly consolidating and verifying information to reduce delays compared to manual methods.

DPA allows credit unions to remain competitive in an increasingly digital landscape, driving fast and efficient workflows for stronger dealer relationships and a better member experience. Adopting DPA is not just a technological upgrade but a strategic move to optimize operations and improve your bottom line. Ready to learn more about how DPA can strengthen your credit union’s lending business?

Contact your GoWest Solutions team to learn more about how Origence can help your credit union create a lending experience that allows your members to move easily through the loan process. 

Posted in GoWest Solutions, Top Headlines.