Credit Unions, unlike banks, are not-for-profit financial service organizations. That's something we all know. However, "not-for-profit" does not mean that they receive funding in the form of donations. Credit Unions must be self-sustaining; hence, they need to watch their bottom line.
Profit is not a bad word. While the goal may not be to generate massive profits, excess funds are returned to the members in the form of dividends. The goal is to make sure that the Credit Union is self-sustaining and delivers value to its members.
That value to the members is what truly sets a Credit Union apart from a bank. Credit Unions can typically deliver:
- Better interest rates on loans
- Lower fees for services
- Low minimum balance requirements
- Control over who runs the organization
- Great customer service
To deliver these services to their members better than banks deliver these services to their customers requires two equally important factors: not-for-profit status and efficiency.
The not-for-profit status of Credit Unions allows them to serve their members with their members' best interests at heart instead of a pure profit motive. This results in lower fees and better rates, etc...
For Credit Unions, great customer service is not just a part of having members; it can also translate into significant cost savings. Take for example, car loans. Credit Unions are known for having great rates for these. If the Credit Union combines their loan process with a document management system, they can speed up the approval process and minimize the number of interactions with the members and the potential for misplaces or inaccessible information. If the car dealership faxes or e-mails the auto information, and the Credit Union captures this with a document management system that routes the information to the loan officer, then everything needed for the loan approval is in one place. This means that loan officers can handle more loans, and the Credit Unions can close more business that requires fewer people doing tasks that do not provide revenue. Automation and routing of loan documents are just one example of improving the efficiency of a Credit Union's processes.
This provides for great customer service which always helps retain members and lowers the cost of doing business which is one way Credit Unions and their members can profit.
Please visit the following link for more examples of Credit Union Document Management.