Doubling the scale of consumer lending operations through automation - CASE STUDY
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Doubling the scale of consumer lending operations through automation CASE STUDY FORUM CREDIT UNION PROFILE City/country: Fishers, Indiana, United States Sector: Credit Unions Temenos products: Temenos Infinity Customer Base: 157,000 members
FORUM Credit Union aims to help members to achieve Embracing advanced technologies has long been
their financial dreams by offering innovative products a central part of FORUM’s growth strategy. The credit
and high-quality customer service. Headquartered in union was among the first in the USA to offer checks
Fishers, Indiana, the credit union manages total assets as a payment method in the 1980s, and was recently
worth $1.7 billion and provides personal and savings an early adopter of fingerprint and facial recognition
accounts, home and auto loans, credit and debit cards, authentication systems for its mobile app. With pressure
financial advisory, and business banking services to mounting on a key lending business, FORUM looked
157,000 members. for a cutting-edge solution to service loan
applications more efficiently.
2
Supporting
ongoing
growth
FORUM’s membership has expanded by
52 percent in ten years, with particular
growth in requests for auto loans. At the
same time, members increasingly expect a
slick, seamless digital experience when they
interact with their financial service provider.
However, FORUM struggled to process rising
application volumes quickly with its previous
loan origination system, increasing the risk of
members switching to a competitor.
Chris Ferguson, Vice President, Consumer
Lending, FORUM Credit Union, explains:
“We have to check and verify every lending
request to prevent fraud and ensure that we
approve all valid applications. Our existing
origination solution forced us to adhere to
rigid decisioning rules and complete many
manual interventions. To support the growth
of our auto loans channel, we looked for a
more flexible system.”
Specifically, FORUM wanted a platform
that would accelerate and automate as
many steps in the auto loan origination
process as possible, and enable the
consumer lending team to set their own
procedures for whether an application should
“
be approved. It was also essential to connect
the new solution
To support the growth of our auto loans channel, we
looked for a more flexible system.”
Chris Ferguson
Vice President, Consumer Lending,
FORUM Credit Union
3
Implementing a customizable,
integrated solution
To modernize its auto loans business, FORUM decided Protection (GAP) and Mechanical Repair Coverage
to implement Temenos Infinity Loan Origination, (MRC) services from the CUNA Mutual Group.
which provides intelligent decisioning functionality
to manage the application, risk calculation, and loan Furthermore, FORUM harnesses the standard
disbursement processes. The Temenos solution enables integrations, called Connectors, of Temenos Infinity
the credit union to create unique approval rules and Loan Origination to connect to applications such
decisioning models for direct and indirect auto loans, as DealerTrack and RouteOne—specialist loan
based on its own lending and risk guidelines. management systems used by its auto dealer partners.
This step helps the credit union to track relationships
Chris Ferguson explains the selection: “Of all the options with dealerships across Indiana, store relevant
that we considered, Temenos stood out for the potential documentation, and to monitor the status of loans
to customize our decision rules. The scalability and through a single interface.
automation features help us to manage more and more
lending applications, and the rich API capabilities Chris Ferguson continues: “The solution was very easy
enable us to integrate seamlessly with third-party to configure, and whenever we experienced challenges
applications.” during the deployment, we worked closely with
Temenos to keep the project moving forwards. Temenos
Another major plus for FORUM was the Debt Protection understands that every financial institution is unique and
panel within the Temenos platform. The credit union uses possesses distinctive goals; having spent time listening to
the feature to enhance its auto loan service by providing our requirements, the Temenos team set us on the path
an accompanying quote for insurance. Through the towards realizing our objectives.”
integrated CUNA Protection Advisor Connector,
FORUM generates quotes for Guaranteed Asset
4
Accelerating loan
approvals
By deploying Temenos Infinity, FORUM increased the
levels of automation in the auto loan origination
process by 100 percent. Today, the powerful
decisioning engine manages 60 percent of all decisions,
helping to improve the efficiency of the auto lending
process, minimizing the risk of human error, and
protecting against fraud. Meanwhile, operational teams
have more time to focus on value-add tasks, such as
exception handling.
Chris Ferguson adds: “Automated decisioning now
allows us to make immediate lending decisions for
the majority of our applications. Combined with the
third-party connectors and ability to complete digital
contracting through our indirect lending partners, we
can now fully audit and fund approved loans for
applicants within hours. Previously, this process could
take several days, so it’s 87.5 percent faster than before
and we are delivering a better experience all-round.”
“... we can now fully audit
and fund approved loans
for applicants within
hours. Previously, this
process could take several
days, so it’s 87.5 percent
faster than before and we
are delivering a better
experience all-round.”
Chris Ferguson
Vice President, Consumer Lending,
FORUM Credit Union
5
Improving
“
One of the best things about
working with Temenos is
their investment in product
member
satisfaction
By streamlining processes and enhancing
user experiences, FORUM has grown its
asset size and membership dramatically. In
development, which the five years since deploying the Temenos
platform, the credit union increased its
ensures we have access to consumer loan portfolio by 135 percent
the most innovative new and membership base by 27 percent.
FORUM also receives around 80-90 percent
functionality.” positive ratings in user satisfaction polls—
significantly higher than its competitors.
Chris Ferguson
FORUM is using the Temenos solution to
Vice President, Consumer Lending,
improve time to market for new lending
FORUM Credit Union
products. For example, during the COVID-19
pandemic, the credit union launched an
emergency loan scheme within just a few
hours—a process that would have taken
several weeks with the old system. FORUM
can also now cross- and up-sell other savings
and credit services to loan applicants,
strengthening brand loyalty.
In addition, Temenos Infinity is helping
FORUM to address constantly evolving
financial regulations. The credit union
configured the Temenos system to collect
relevant datapoints, which it uses to create
reports that demonstrate compliance with
industry guidelines.
Chris Ferguson concludes: “One of the best
things about working with Temenos is their
investment in product development,
which ensures we have access to the most
innovative new functionality. Looking ahead,
we see the potential for many collaborations
to further enhance our services. With
Temenos supporting us, we are confident that
we will continue to help our members achieve
their financial dreams.”
6About FORUM Credit Union FORUM Credit Union, with convenient branch locations and anywhere access via the internet or mobile device, serves more than 160,000 members in the central Indiana area. A full suite of financial services are offered including home mortgages, auto loans, personal checking, credit cards, business checking, health savings accounts, and investment planning. For more information about FORUM Credit Union, please visit: www.forumcu.com. About Temenos Temenos AG (SIX: TEMN) is the world’s leader in banking software. Over 3,000 banks across the globe, including 41 of the top 50 banks, rely on Temenos to process both the daily transactions and client interactions of more than 500 million banking customers. Temenos offers cloud-native, cloud-agnostic and AI-driven front office, core banking, payments and fund administration software enabling banks to deliver frictionless, omnichannel customer experiences and gain operational excellence. Temenos software is proven to enable its top-performing clients to achieve cost-income ratios of 26.8% half the industry average and returns on equity of 29%, three times the industry average. These clients also invest 51% of their IT budget on growth and innovation versus maintenance, which is double the industry average, proving the banks’ IT investment is adding tangible value to their business. For more information, please visit www.temenos.com. ©2021 Temenos Headquarters SA - all rights reserved. Warning: This document is protected by copyright law and international treaties. Unauthorised reproduction of this document, or any portion of it, may result in severe and criminal penalties, and will be prosecuted to the maximum extent possible under law.
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