In recent years, an increasing number of credit unions have strategically chosen to acquire banks to broaden their member bases and diversify their service offerings. The benefits of these acquisitions are obvious. What credit union doesn’t want a stronger market presence and the ability to expand the number of financial services it offers to members?

But while more and more credit unions are stepping up to buy banks, it’s not always a smooth ride. When you mix two different financial worlds—and especially two different mortgage operations—you’re bound to hit some bumps along the way. And often, the biggest bumps involve technology and streamlining processes between organizations.

Challenges in integration

For starters, most credit unions and banks not only use completely different tech solutions, but many still rely on legacy systems that were never designed to work together to begin with. This makes issues like data migration and system interoperability particularly difficult to overcome following a merger. The data issue alone is huge. We’re talking tons of sensitive information and transaction histories that need to be transferred without losing important details or interrupting a seamless member experience.

And it’s not just about keeping the gears turning. These days, consumers looking to finance a home or refinance their current mortgage expect to do everything easily online. If either the credit union or the bank they’ve acquired is still stuck in the world of tedious and manual processing, it’s going to take a serious digital upgrade to keep up with these expectations.

With rules and regulations around mortgage lending constantly evolving, it’s also crucial for credit unions to stay compliant both during and after integration. Merging two institutions means updating security measures and enhancing compliance checks to ensure accuracy and accountability.

Lastly, merging tech isn’t just a technical issue—it’s about making sure the whole operation becomes smoother and more efficient than before, which is easier said than done with outdated systems. While a digital transformation is essential for credit unions to stay competitive, it takes the right technology investment and know-how to achieve it.

Answers found in the cloud

This is where cloud-based digital mortgage technology steps in. With modern origination and servicing platforms built and delivered in a cloud environment, credit unions can take a simpler, more streamlined approach to blending two separate mortgage businesses into one. Because cloud-native mortgage technologies operate entirely online, they also make the process of integrating lending operations much faster and more efficient, particularly when it comes to handling borrower data.

Imagine a new member who has accounts with both the bank and the credit union that has just merged. Their information might be scattered across two or more different systems. However, cloud-based platforms can consolidate this data and provide a unified view of the member’s information. This integration can also enhance the credit union’s mortgage offerings by leveraging data from a single source to address the needs of newly attained members. Additionally, when cloud-based digital solutions are equipped with data analytics, credit unions can also better understand borrower behaviors, predict their future needs, and make smarter decisions about the types of mortgage products they should offer.

Automation is another significant advantage. Modern digital mortgage technologies have successfully automated many tasks that were previously handled manually, including pre-qualification checks, document management, and income verifications. These automations allow tasks to be completed in a fraction of the time they previously took, which accelerates the entire mortgage process from initial application to closing. This not only allows the credit union to deliver a better member experience, but also reduces the chance for human errors and incomplete loan files, thus creating a more accurate, compliant and detail-oriented operation.

Getting there from here

Key to successfully merging two lending operations is prioritizing the member experience. Credit unions must select scalable digital solutions that integrate well with their existing technology stacks, which ensures continuity during the transition.

In most cases, however, the secret to success is selecting the right technology partner. Choosing vendors that have deep expertise in mortgage operations from both a banking and credit union standpoint can be a game-changer. Typically, these partners can equip credit unions with scalable solutions that not only fit their current needs but also support future growth.

Moreover, these companies can educate a credit union’s mortgage team on how to maximize the benefits of a cloud-based system and automated workflows, so everyone better understands the interconnected nature of their roles post-integration. This includes tracking key performance indicators related to mortgage operations to identify and address inefficiencies. Continuously refining the lending process based on member feedback ensures that member expectations are not only met but exceeded.

By adhering to these best practices, credit unions can effectively manage the integration of technology following a bank acquisition, ensuring a seamless transition that prioritizes member experience, operational efficiency, and compliance. But just as important is investing in the right technology—which not only helps a credit union overcome its acquisition hurdles, but sets them up for long-term success.