AI is assisting cooperative societies in enhancing their service delivery.
In the USA, a credit union in Indiana, known locally as a Savings and Credit Cooperative (SACCO), is undergoing a digital transformation in its lending department that allows it to handle significantly more loan applications without increasing staff, as highlighted by Andy Mattingly, the chief operating officer at FORUM Credit Union, which has been in operation since 1941.
As automation driven by artificial intelligence reshapes traditional workflows, Mattingly’s insights highlight a transition toward “frictionless” operations that allow teams to concentrate on more valuable tasks and provide better member service. Emerging data from the Filene Research Institute, an American credit union and consumer finance think tank, supports this movement, indicating that early adoption of AI is crucial for credit unions to stay competitive in the rapidly changing financial environment.
AI-driven efficiency in lending
Mattingly has observed multiple technological advancements throughout his 35-year career in the credit union field. However, he believes AI possesses a uniquely transformative ability for lending departments. At FORUM Credit Union, AI serves as a practical tool that automates the underwriting process by evaluating various factors, including credit scores, disposable income, and detailed financial profiles.
From their experience with automated underwriting, FORUM estimates that this method allows them to process as much as 70% more loans than traditional manual underwriting practices, Mattingly noted. “Our aim isn’t to eliminate our underwriters, but to enable them to concentrate on the more complex cases while our AI manages routine decisions.”
This transition not only boosts loan volume but also improves the accuracy and efficiency of lending operations, he mentioned.
Automating key processes
The influence of AI at FORUM Credit Union extends far beyond underwriting. For loans managed through dealer channels, the AI system streamlines the complete document review process—from auditing application packets and verifying calculations to identifying inconsistencies.
This automation quickly detects potential fraud and highlights discrepancies, ensuring that human staff can focus on resolving exceptions and providing personalized member assistance. By optimizing these labor-intensive processes, the credit union reduces manual errors and significantly speeds up loan funding—a vital advantage in today’s competitive arena.
Industry trends supporting AI adoption
Mattingly’s personal experience aligns with broader industry trends. Data from the Filene Research Institute reports illustrate that while numerous credit unions are still in the initial phases of AI implementation, the potential advantages are evident. The research shows that a considerable number of credit unions are beginning to experience enhancements in efficiency, member experience, and fraud detection as a result of AI utilization.
Although most are currently in the “crawl” or “walk” stages of their AI journey, the steady progress highlighted by these studies supports the idea that gradual AI integration is paving the path for future competitive advantages.
Empowering employees, not replacing them
At the core of Mattingly’s vision is the conviction that AI should enhance employee capabilities rather than replace them. By automating routine and repetitive tasks, AI frees credit union personnel to engage in higher-value, more fulfilling work—such as assisting members with complex financial requirements.
This strategy resonates with the industry-wide belief, backed by Filene’s research, that the genuine value of AI resides in its potential to boost productivity and service quality without requiring additional staff.
“The real benefit is in accomplishing more with the same number of individuals,” Mattingly asserted, underscoring that AI’s greatest asset is its function as an enabler of smarter, more efficient operations.
Key Takeaways
Instead of perceiving the technology as a threat due to expenses or intricacies, leaders should concentrate on collaborating with dependable vendors and investing in incremental innovations that empower their teams.
As pioneers like FORUM Credit Union demonstrate, the strategic application of AI not only enhances loan processing capability but also transforms routine tasks into opportunities for greater impact and member satisfaction. By prioritizing employee empowerment and optimizing operations, credit unions can unlock new efficiencies and differentiate themselves in an increasingly competitive landscape. Source: America’s Credit Unions
“AI should enhance employee capabilities rather than replace them. By automating routine and repetitive tasks, AI frees credit union personnel to engage in higher-value, more fulfilling work.
