How to Build a 6-Minute Loan Process
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Why did Atlantic Federal Credit Union decide to rebuild its consumer lending process?
A consumer loan that used to take Atlantic Federal Credit Union up to two days to open now takes only six minutes. And most of these close without the borrower handling a single piece of paper. You know, the first question most bankers would probably ask is whether this speed actually negatively impacts the whole risk element. And it doesn't. And how they do it and how they've worked at it is what we're going to discuss today. Joining me are Adam Cadmus, Chief Experience Officer at Atlanta Federal Credit Union, and Ben Conant, the Chief Product Officer at Alchemy. So welcome to the show, both of you. It's good to have you on the show. And it's really exciting, as I told you before we got on the air, it's really exciting to be talking about the innovation that's making it possible to process loans almost faster than opening new checking accounts.
That's pretty exciting. So, you know, Ben, let's start with you a little bit. What was actually broken in the consumer lending process that made this worth building? Your company has already built a really good new account, new checking account opening process. But from a practitioner's side rather than the product side, what made this so important?
Well, first, Jim, thanks for having me on. It's always great to be here. And it's great to see Adam here as well. Adam and I actually spent a day together and an evening together out at Atlantic FCU while we were building this. So it's always great to be on a podcast with someone who's a true friend. Look, I think the first thing we have to talk about is why is it critical to modernize lending technology today, right? If we're going to think about what's broken, it's like, well, why do we need to change anything? And I think the reason for that is that loan origination technology has become, over the past five to 10 years, strategic infrastructure. It's not just a back office system that we need to automate to improve efficiency, right?
This is strategic infrastructure that your institution needs to invest in in order to compete. And Why has that happened? Well, over the past five to 10 years, you have the rise of LendingTree, Credit Karma, SoFi, right? The market has changed and these fintechs and these marketplaces are marketing on the ease of the experience for the end customer. The end customer doesn't care that you have a back office process that involves this Rube Goldberg machine of how the loan actually gets funded and approved, right? This... The end customer is looking at, how can I get access to the lending product that I need as quickly and painlessly as possible? And these fintechs are marketing exactly that. So the reason, the thing that was broken is that we have a bunch of legacy providers that are designed around, oh, it feels good.
We can map this to your back office process and we're not going to have to change that much. But that's totally broken. We have to bring this technology into the now where you're really competing with folks who are going to say, hey, you can get a loan in six minutes and it'll be funded, right? Now, Atlantic FCU can say that, right? So that's the whole point of what we're building with Mantle Loan Origination.
So Adam, before we get into this very deeply, what was your legacy setup actually costing you? Because I would imagine when you're going to your senior management and presenting this to them, you're saying, you know what, we need this because of this. And we can talk about customer satisfaction, but what was it costing you in result of time, members, and maybe dollars?
Yeah, I don't know how to answer that completely because we didn't have the visibility that we needed to really measure missed opportunities. We do know that the application itself was outdated, which worked against us trying to build a technology-focused and innovative brand. Reporting, again, was lacking. We spent time on manually processing add-ons like debt protection. But the biggest challenge was probably that we had fragmented member and loan applications at one point we were accepting loan applications from non-members reviewing the application if everything looked okay we would go back to the applicant and say okay now it's time to apply for your membership which is comical to think about in hindsight right when you think about ben mentioned the fintech experience that's available from from so many other providers today
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Chapters
6 chapters
1
Why did Atlantic Federal Credit Union decide to rebuild its consumer lending process?
0:01–6:09
2
What were the biggest shortcomings of the legacy loan‑origination and membership systems?
6:09–13:04
3
How did integrating membership enrollment and lending into a single flow improve speed and risk?
13:04–19:14
4
What role did trusted third‑party data sources play in removing document collection?
19:14–25:08
5
How did the team ensure risk and compliance weren’t compromised by the faster process?
25:08–33:13
6
What impact did the six‑minute loan process have on member experience and back‑office efficiency?
33:13–33:43