What is on the Minds of Ohio's Credit Unions?

With Invest48 coming up, we thought it would be a good time to touch on some of the challenges we have been hearing from Credit Unions. Ohio’s credit unions serve over 3 million members, from big cities like Columbus and Cleveland to rural communities according to the Ohio Credit Union League. They offer a local, personal touch that inspires trust – but in today’s fast-paced financial landscape, members also demand the convenience and speed found at big banks as credit unions grapple with their own digital transformation efforts. This puts Ohio credit unions of all sizes at a crossroads: how to preserve their community-focused service while overcoming modern challenges. While Credit Unions have experimented with services such as Equifax: TWN, we hear time after time again that is has become too cost prohibitive for regular use. Below, we explore key pain points facing Ohio’s credit unions in each area and how income and employment verification solutions (like the Verify4 platform) can deliver meaningful improvements by streamlining workflows, reducing friction, and improving trust and decision-making. Oftentimes, the best solution is a straight forward digital upgrade, without the extra bells and whistles that typically come attached with other income verifications tools on the market.

Consumer Loan Processing: Speeding Up Auto, Personal, and HELOC Lending

Ohio credit unions have long been strong lenders – for example, auto lending has been a bright spot, with Ohio credit unions’ loan portfolios growing rapidly as they partner with local auto dealers, adding tens of thousands of members in coming years. But as consumer demand rebounds, credit unions face pressure to process loans faster and more efficiently. Members applying for auto loans, personal loans, or home equity lines of credit (HELOCs) expect near-instant decisions, akin to what online lenders or dealerships can offer. The traditional process of collecting paystubs, W-2s, and other documents to verify income slows down loan approvals and frustrates applicants. Every extra day waiting for verification is a day the borrower might go elsewhere for credit.

Many Ohio credit unions still rely on manual income and employment verification when underwriting consumer loans. Loan officers or underwriters must chase down pay documents and phone employers to confirm details – a time-consuming process that can introduce errors. One major pain point is the lack of real-time data; lenders often deal with fragmented data sources and outdated information, making it hard to make confident lending decisions quickly. This not only delays approvals but can lead to application abandonment if the process drags on too long. There’s also a risk element: without thorough verification, borrowers might overstate income or even submit fake paystubs to qualify for loans they can’t truly afford. (Alarmingly, industry research finds about 1 in 10 paystubs that lenders receive are forged as Fake Paystubs Drain Billions from Lenders).

A modern income and employment verification platform like Verify4 can transform loan processing. By connecting directly to state data, these tools allow credit unions to instantly validate a borrower’s income and job status – often in seconds rather than days. For the member, this means less hunting down documents or waiting on HR for confirmation. For the credit union, it means better data for better decisions: up-to-date, trustworthy income information that provides a clear view of the member’s capacity to pay. This speeds up the approval process and removes friction, so loans that used to take days to underwrite can potentially be decisioned on the same day.

These platforms are also flexible across loan types – whether it’s an auto loan, a personal loan, a credit card, or a HELOC, the verification process can be unified and streamlined. That consistency improves operational efficiency and ensures every borrower gets a smooth, seamless experience no matter what product they’re applying for. Ultimately, faster loan processing not only makes members happier, it also allows Ohio credit unions to book more loans with confidence, driving growth while managing risk.

Remove frictions in the digital economy

Winning a new member is only half the battle – the other half is getting them onboarded smoothly. In Ohio, credit unions ranging from large institutions in metropolitan areas to small community charters are all investing in digital account opening to broaden their reach. Many Ohio credit unions have expanded beyond their immediate locales. Whether a credit union’s field of membership is community-based or tied to select employers, the initial account opening experience sets the tone for the member’s relationship.

A primary challenge is onboarding speed and simplicity. Today’s consumers – accustomed to one-click purchases and app-based services. In fact, research shows that if an online account opening process takes more than about 5 minutes, many potential members will abandon it. If they hit too many roadblocks (too many forms, document uploads, or waiting periods), they lose confidence and may give up or turn to a competitor. Furthermore, some credit unions have specific eligibility requirements (like employer or community affiliation); verifying those manually (e.g. asking for an employee ID or residency proof) can add friction if not handled digitally.

Risk Mitigation: Fighting Identity and Application Fraud in the Digital Era

Unfortunately, income and employment misrepresentation has become more rampant – Point Predictive’s research shows it accounted for nearly half of all auto loan fraud losses ($3.6 billion) in 2023. This type of fraud isn’t just about losing money on bad loans; it also means higher default rates and charge-offs, which ultimately hurt the credit union’s financial health and even its honest members. The traditional verification tools have struggled to keep up, or gotten too expensive. Manual checks of paystubs can be foiled by high-quality forgeries (with roughly 10% of submitted paystubs being bogus on average). Fraud rings even set up phony employers and “answering services” to confirm fake employment if someone calls to verify. All of this is compounded by the fact that legitimate data sources are limited – the big centralized employment databases (like those traditionally used for verification) only cover about 30-45% of applicants in many cases, leaving more than half of applicants where the lender has to fall back on riskier methods like manual document review.

Verify4 is a game-changer for risk mitigation. We tackle the problem on multiple fronts. First, by providing real-time access to authoritative income and employment data, we close the gaps that fraudsters exploit. Instead of taking an applicant’s paystub at face value (which might be a fake created in 90 seconds on any of the 12,000+ fake paystub websites), a credit union can use Verify4 instantly check the applicant’s stated employment against government records. For example, an investigative report found thousands of loan applications listing a small computer store in Baltimore as the employer – a completely fake setup where the “company” would vouch for bogus employment in exchange for cash. If someone claims to work at a company and earn $80,000/year, the verification system can confirm within seconds whether that matches the employer’s records. This makes it extremely hard for a bad actor to succeed, because a fake employer won’t show up in the verified data and a fake paystub won’t reconcile with real income data. Essentially, it turns the lights on in what used to be a blind spot.

Member Experience and Retention: Earning Loyalty Through Convenience and Trust

Ohio’s credit unions have a proud history of member service – many were founded to serve specific communities or workplaces and earned loyalty through personal relationships. But today, member experience is just as much about digital interactions as in-branch service. From applying for a loan on a smartphone to getting immediate answers about an account, members expect their credit union to deliver speed, ease, and consistency. If not, even long-time members might drift to competitors offering a slicker experience. Retention in the digital age hinges on meeting members where they are and removing pain points from every interaction.

One key challenge is meeting the high bar set by consumer tech giants. Members now compare their credit union’s processes to Amazon’s one-click checkout or Apple’s FaceID login – experiences that feel instant and effortless. Verify4 keeps consumers in the drivers seat in under 2 clicks. Other consumer permission solutions can require 13 clicks or more. When a process at the credit union is clunky – say, a loan application that requires printing and scanning forms, or an account update that needs an in-person visit – it creates friction that members remember. Over time, too many of these friction points can erode a member’s willingness to keep accounts or loans at the credit union, no matter how good the rates are. The same is true for existing members: a survey by Deloitte found that lengthy processes cause drop-off, can lead many to quit mid-process. In a world of short attention spans, every extra step or second of delay matters.

Additionally, Ohio credit unions serve diverse demographics – from tech-savvy young adults in Columbus to retirees in small towns. Catering to all can be tough. The younger crowd might leave if mobile app features are lacking, while older members might leave if they feel services aren’t tailored to their needs. A consistent factor across demographics, however, is that nobody likes redundant paperwork, clunky logins, or uncertainty. Members also want to feel known and trusted by their credit union, not treated like a stranger each time they apply for a new product. This kind of responsiveness builds trust and goodwill. Members feel “my credit union knows me and values my time.”

In fact, some credit unions report that offering fast, low-friction service becomes a word-of-mouth advantage. When members have an easy time opening accounts, getting loans, and solving issues, they’re more likely to refer family and friends – turning great experience into organic growth. Verification tools contribute by removing the traditional pain points (no more “I’m waiting to hear back on my loan” or “They keep asking me for more paperwork”). Instead, members get quick answers and outcomes.

Moreover, a modern verification platform can enable more personalized service, which is key to retention. For example, if the verification data shows a member’s income has increased since they joined, the credit union might proactively offer them a higher credit line – demonstrating attentiveness. These kinds of touches deepen the relationship. They show that the credit union is not just transacting with the member but is truly their financial partner.

Operational Efficiency and Staffing: Doing More with Less in Ohio’s Credit Unions

It’s no secret that many credit unions operate with lean teams – especially smaller community institutions. In Ohio, where there are dozens of credit unions serving local populations, resources can be tight. One recurring theme heard among Ohio credit union executives is staffing challenges: an inability to fill open positions or find people with the right skills for specialized roles. Staffing constraints became even more pronounced after the pandemic and in the face of a tight labor market. At the same time, operational workloads (from regulatory compliance to handling increased loan volumes) have grown. Credit unions are expected to “do more with less,” finding ways to maintain excellent service and prudent operations despite limited human resources.

Credit union employees often wear multiple hats – an underwriter might also handle member service calls, or a loan officer might have to assist with back-office filing. Routine tasks like verifying documents, keying in data from paper forms, or following up on employment checks can become bottlenecks. Technology can serve as a means for employee retention. In fact, banking leaders report that employee-related challenges are significant obstacles, with 80% of financial institutions viewing employee turnover as a major issue for 2024. High turnover in turn creates a cycle where remaining staff are under more pressure, potentially hurting service quality. For Ohio credit unions, which pride themselves on personal service, any dip in service due to understaffing is problematic.

Another pain point is that every manual step is an efficiency drag. Consider the process of income verification without an automated system: a staff member has to receive a fax or email, interpret a paystub (which might be in any format), possibly call an employer, and then input the data into the loan system. This could take 30-60 minutes of work per loan. In worst cases, important tasks might “slip through the cracks” when staff are stretched thin.

For credit unions facing staffing shortages, this kind of efficiency gain is a lifesaver. It’s like adding extra team members, because the software takes on a large volume of work. Instead of desperately trying to hire more underwriters, a credit union can empower a smaller team to handle a larger workload. One credit union leader from New York highlighted that a digital onboarding platform allowed even a “small team to deliver personalized journeys” and engage members effectively, thanks to automation. The same principle applies to verification – a small team of lenders can process many more loans because they aren’t manually verifying each one. Automated verification ensures that every application is held to the same standard and cross-checked in the same way. It also helps with regulatory compliance (exam auditors love to see consistent processes!).

Removing tedious tasks can make the workplace more attractive to the tech-savvy talent credit unions seek to attract. This kind of environment – leveraging technology to augment staff – is how credit unions can provide an environment where employees feel they can grow (rather than being buried in busy-work). In a climate where doing more with less is often the norm, such technology is not a luxury but a necessity to continue serving members effectively without burning out your team.

Marrying Trust with Technology for a Brighter Future

Ohio credit unions stand at the intersection of traditional values and modern expectations. They are trusted, community-centric institutions that now must navigate digital transformation, rising fraud threats, and resource constraints. The good news is that the very nature of credit unions (nimble, member-focused, and not driven by profit maximization) positions them well to adapt with the right tools.

Income and employment verification platforms like Verify4 offer a powerful example of how smart technology can reinforce credit union strengths. In essence, these verification solutions let credit unions punch above their weight class – delivering big-bank speed with hometown service. A credit union member can enjoy applying for a car loan at 9 PM and get an answer by morning, all while knowing their local credit union team is a phone call away if they have questions. That combination of technology and personal touch is the recipe for sustained success. As one credit union executive noted, modernizing with the technology consumers want has been key to achieving strong growth. The investment in tools like Verify4 is an investment in member experience, risk management, and efficiency all at once.

By focusing on these key areas and embracing innovative solutions, Ohio’s credit unions can continue to thrive. Most importantly, they will continue to fulfill their People Helping People philosophy – now powered by data-driven insights and streamlined processes that make every interaction easier for both members and staff.

If you are headed to Invest48 this year in Columbus, let’s connect. Our co-founder, Dr. Michael Turner, will be presenting with Navatros on Tuesday, April 22nd at 11:30am during the event. He will be talking about how sometimes, too much tech, often leads to less desirable results when over relying on the latest and greatest tech.