Streamlined Digital Lending: TruStage Overhauls Lending Security with Straightforward, Real-Time Technology
TruStage Simplifies Loan Protection for Borrowers and Financial Institutions
TruStage has streamlined the process of loan protection for both borrowers and financial institutions by integrating payment protection directly into the digital loan application process. This integration allows borrowers to view real-time eligibility, receive clear educational content, and select protection options seamlessly within the application—without paper forms or extra staff work.
Key enhancements of this digital lending process include in-app selection of protection during the loan application, real-time eligibility checks, helpful on-screen education, and integration via API that connects protection selections directly with loan origination systems. These improvements offer a scalable, seamless, and frictionless borrower experience that benefits credit unions and lenders by facilitating higher protection adoption rates and supporting members in managing financial hardship.
With the new process, borrowers can make protection decisions immediately, reducing friction and increasing protection uptake. Real-time eligibility checks automatically show borrowers only the protection plans they qualify for, streamlining the experience and helping financial institutions target appropriate offers. Helpful on-screen education explains protection benefits clearly at key moments, resulting in a significant rise in elections (a 13% increase) and higher consumer interest in loan protection. The integration via API connects protection selections directly with loan origination systems, eliminating redundant data entry and reducing operational overhead for institutions.
Payment protection products like TruStage Payment Guard Insurance provide a digital safety net for borrowers facing life events that impact loan repayment, which also helps lenders mitigate risk in uncertain economic conditions. The new process will be available at over 300 credit unions by the end of the year, with plans to expand. TruStage already has relationships with 93% of credit unions nationwide, aiming to increase access to loan protection for a growing pool of consumers and financial institutions.
According to Maier, the new process provides greater peace of mind and protects borrowers and financial institutions in case of unexpected hardships. The National Credit Union Administration (NCUA) reports total loans outstanding at federally insured credit unions as $1.65 trillion, highlighting the importance of such improvements in the loan protection process.
- The integration of payment protection into the digital loan application process by TruStage enables businesses to offer a seamless borrowing experience, fostering higher adoption rates of protection plans and shielding both borrowers and financial institutions from financial hardship.
- By providing real-time eligibility checks, on-screen education, and streamlined integration via API, TruStage enhances the loan protection process, fostering a 13% increase in protection elections and demonstrating the critical role of technology in facilitating better financial decision-making for consumers and lenders alike.
