The Efficiency Imperative: How Credit Unions and Community Banks in Canada Can Streamline and Accelerate Commercial Lending

Vital Role of Credit Unions for Businesses in Canada 

In a dynamic economic climate, Canadian credit unions and community banks have the potential to become a vital source of financial support for businesses, particularly small businesses, and those in the agricultural sector. By embracing the efficiency imperative and technology-led operational excellence, credit unions can streamline processes, enhance risk management, and offer competitive and customized loan products to the commercial clients they have. This not only benefits credit unions by improving efficiency and member experience, but also strengthens the communities they serve by providing essential financial resources to local businesses. 

However, to truly capitalize on this opportunity, Canadian credit unions and community banks need to equip themselves with the right tools. According to a study by Deloitte, loan origination software can reduce processing times by up to 50%, freeing up valuable staff time for member service and loan analysis

Transform Your Commercial Lending with Purpose-Built Automation 

Here is where the Doxim’s Customer Engagement Management (CEM) product suite comes in. Doxim is a technology company with a customer-led roadmap designed to provide in-branch and digital software that helps CUs deliver better value, deeper connections, and moments of delight to members.  

Doxim Commercial Loan Origination Solution (CLOS) is a core product in the Doxim suite designed to help Canadian credit unions eliminate the headache of manual spreadsheets and transform their commercial lending approach with data-driven insights and automation.

Macroeconomic Trends and the State of Small Business Lending in Canada 

The current environment is challenging with Doxim customers identifying 3 overarching trends affecting the market. 

A recent report by the Canadian Federation of Independent Business (CFIB) found that 63% of small businesses are concerned about rising interest rates impacting their ability to access credit. This presents a golden opportunity for credit unions and community-focused banks offering personalized service and flexible loan options to members. 

However, to compete effectively, credit unions need to streamline their commercial lending processes. Here’s where Doxim CLOS comes in.  

Boosting Efficiency with Doxim Commercial Lending Origination Software (CLOS) 

Doxim Commercial Loan Origination (CLOS) is a web-based SaaS solution created for, and in partnership with, Canadian financial institutions struggling with inefficient, error-prone, and costly paper-based commercial loan application workflows. 

Doxim CLOS offers a number of benefits for our Canadian credit unions customers, especially those looking to expand in their preferred verticals and even in their agricultural lending portfolio. Here are some key advantages, supported by statistics: 

• Streamlined Commercial Loan Origination: Replacing complex spreadsheets with a system that automates document collection, verifies information, and reduces paperwork fundamentally translates into faster loan processing and quicker decisions for borrowers. According to a study by Deloitte, loan origination software can reduce processing times by up to 50%, freeing up valuable staff time for member service and loan analysis.
• Enhanced Digital Collaboration Leads to Better Risk Assessment: Doxim CLOS can capture financial data, assess creditworthiness, and flag potential risks. This allows credit unions to make informed lending decisions and maintain a healthy portfolio. According to a study by Deloitte, financial institutions that leverage collaboration tools for risk management experience a 20-30% reduction in loan defaults.
• Data-Driven Decision Making: Access to real-time data empowers credit unions to tailor loan products to specific industries like agriculture, accounting for benchmarks, projections and unique risk factors. According to Accenture, 78% of high-performing banks leverage decisioning tools to gain a deeper understanding of their customers and tailor products accordingly. 
• Improved Business Member Experience: Faster turnaround times and a more efficient application process translates into a better business member experience. This fosters loyalty and encourages repeat business. A study by Bain & Company found that increasing customer satisfaction by just 5% can lead to a profit increase of up to 95%.  
• Streamlined Annual Review & Operational Governance: The ability to store client data year-over-year also streamlines the annual review cycle, enabling you to clone the customer’s data from the previous year, apply updates, then send it for review and approval. The process is easy to manage and gives traceability for regulators and auditors – since all the data is located in one place.

Agricultural Lending for Credit Unions in Canada

The agricultural sector is a significant contributor to the Canadian economy, with an output value of $143.8 billion in 2022-2023 [Source: Agriculture and Agri-Food Canada]. By leveraging commercial lending software, credit unions can better serve this vital industry. The software can:

• Simplify Complex Loan Applications: Ag loans often involve multiple assets and complex calculations in complex spreadsheets. Doxim CLOS can automate these processes, saving time for both lenders and borrowers.
• Improve Digital Collaboration through Secure Document Sharing: Secure document delivery allows staff to easily collaborate on financial documents and expedite the lending process.
• Enable Industry-Specific Utilities and Calculators: Doxim CLOS can integrate features tailored to agricultural lending, such as tracking crops, cattle, and incorporating machinery and land data to mitigate risk. These features are so customized that they typically are only facilitated through complex spreadsheets.

Doxim CLOS also offers a custom agricultural lending section with custom calculators, security and collateral capture, expenses management and other features to manage an agriculture-focused book of business.