Artificial intelligence helps one credit union boost loan processing volume by 70%

An Indiana credit union’s lending department is experiencing a digital transformation that enables them to process substantially more loan applications without adding extra staff, according to Andy Mattingly, chief operating officer at FORUM Credit Union.  

As artificial intelligence-driven automation redefines traditional workflows, Mattingly’s experience underscores a shift toward “frictionless” operations that empower teams to focus on higher-value tasks and deliver enhanced member service. Emerging data from Filene Research Institute* further supports this trend, signaling that early AI adoption is essential for credit unions to remain competitive in today’s fast-paced financial landscape.

AI-driven efficiency in lending

Over his 35-year credit union career, Mattingly has witnessed numerous technological shifts. Yet, he believes that AI holds a uniquely transformative potential for lending departments. At FORUM Credit Union, AI is a practical tool that automates the underwriting process by analyzing multiple factors such as credit scores, disposable income, and detailed financial profiles.

Based on their experience with automated underwriting, FORUM estimates that this approach enables them to process up to 70% more loans compared to traditional manual underwriting methods, Mattingly said. He added an important caveat: “Our goal isn’t to replace our underwriters, but to enable them to focus on the more complex cases while our AI handles routine decisions.”  

This shift not only increases loan volume but also enhances the accuracy and efficiency of lending operations, he said.

Automating key processes

AI’s impact at FORUM Credit Union goes well beyond underwriting. For loans processed through dealer channels, the AI system automates the entire document review process—from auditing application packets and verifying calculations to flagging inconsistencies.  

This automation swiftly identifies potential fraud and highlights discrepancies, ensuring that human staff can concentrate on resolving exceptions and delivering personalized member support. By streamlining these time-consuming processes, the credit union minimizes manual errors and significantly accelerates loan funding—a critical advantage in today’s competitive market.

Industry trends supporting AI adoption

Mattingly’s firsthand experience is echoed in broader industry trends. Data from Filene Research Institute reports* illustrate that while many credit unions are still in the early stages of AI adoption, the potential benefits are clear. The research shows that a significant portion of credit unions are beginning to witness improvements in efficiency, member experience, and fraud detection capabilities through the use of AI.  

Even though the majority are currently in the “crawl” or “walk” phases of their AI journey, the steady progress highlighted by these studies supports the notion that incremental AI integration is paving the way for future competitive advantage.

Empowering employees, not replacing them

Central to Mattingly’s vision is the belief that AI should empower employees rather than replace them. By automating routine and repetitive tasks, AI liberates credit union staff to engage in higher-value, more rewarding work—such as assisting members with complex financial needs.  

This approach aligns with the industry-wide sentiment, supported by Filene’s research, that the true value of AI lies in its ability to enhance productivity and service quality without necessitating additional headcount.  

“The real payoff is in doing more with the same number of people,” Mattingly asserted, emphasizing that AI’s greatest strength is its role as an enabler of smarter, more efficient operations.

Key takeaways for credit union professionals

Rather than viewing the technology as a threat due to cost or complexity, leaders should focus on partnering with reliable vendors and investing in incremental innovations that empower their teams.  

As early adopters like FORUM Credit Union demonstrate, the strategic use of AI not only increases loan processing capacity but also transforms everyday tasks into opportunities for greater impact and member satisfaction. By focusing on empowering employees and streamlining operations, credit unions can unlock new efficiencies and set themselves apart in an increasingly competitive market.  

Learn more in America’s Credit Unions’ Executive Order tracker: Removing Barriers to American Leadership in Artificial Intelligence.

*Refers to report numbers 639 and 613