This $750 Million dollar MA-based Credit Union faced the task of efficiently managing thousands of auto loans, ensuring compliance, and delivering comprehensive reports to co-investors.
A prototype of a bespoke application was delivered in a matter of days. Following testing, the full application was deployed after a few months.
The application delivered was an all-in-one app for seamless payment aggregation, reporting, and investor portals.
The new solution expedited end-of-month reporting time from over a week to just a few days.
Implementation of the new solution significantly improved efficiencies at the credit union, addressing regulatory requirements and achieving strategic goals.
Overall, the automation of processes saved the credit union about 480 hours per year, or a week's worth of work every 12 months
Introducing a New England Regional Credit Union
Our client is a member-owned credit union in New England specializing in auto, mortgage, and small business loans. Like others, they use a core system, the FiServ equivalent of Jack Henry’s Symitar for Credit Unions.
In 2014, they embarked on originating and packaging portfolios of auto loans for sale to other credit unions—while maintaining loan servicing and debt collection. They sought a streamlined approach to portfolio reporting for their co-investors. As the business grew, they sought a streamlined approach to portfolio reporting for their co-investors
With the responsibility of servicing thousands of auto loans, ensuring repayment, and staying compliant with evolving regulatory reporting requirements, the Client faced the challenge of enhancing comprehensive reporting to co-investors.
The need arose for a solution that automated monthly cash payment aggregation against the original loan agreement. The solution would also need to integrate seamlessly with their in-house origination system and Fiserv accounting system, allowing for manual overrides, day-to-day mark-to-market, and delinquency reporting. Furthermore, it had to calculate loan servicing fees before determining the final payment to investors.
The Solution: An All-In-One Application
Through collaborative efforts, a Kinetech and Mendix engineering team developed a bespoke application from the ground up. The solution Kinetech delivered was an integrated payment aggregation, reporting, and investor portal. Leveraging the Mendix App Platform, batch processing, and secure FTP. The solution addressed the Client's unique needs.
The platform's flexibility, a strength of Mendix that is acknowledged by Gartner, enables the creation of new functionalities in the future. Investor reports are now automatically generated monthly and accessible through the portal for review.
Within a matter of days, the Kinetech/Mendix team delivered a functional prototype and launched the full application after successful testing over a few months. The result significantly improved efficiencies across the credit union, notably reducing end-of-month reporting time from a week or more to just a few days. Michael Guido, CEO of Kinetech, expresses pride in Kinetech’s contribution to achieving our client's strategic goals,
“The project was a challenge from the beginning as the final solution had to comply with several regulatory and self-imposed requirements. Anyone familiar with servicing a portfolio of loans with varying interest rates can appreciate the complications and necessity for manual overrides. We are very proud of Kinetech’s contribution to the ultimate solution and are happy we were able to assist the client in achieving the project’s strategic goals” - Michael Guido | CEO at Kinetech
In partnership with Kinetech and Mendix, the credit union successfully overcame the challenge of optimizing auto loan servicing and reporting.