USE CASES

Digital Modernization for UK & Irish Credit Unions

Problem: The "Digital Stagnation" of Community Finance

  • Legacy System Bottlenecks: Most UK and Irish Credit Unions are tethered to rigid, decades-old core banking systems that lack API connectivity, making real-time updates and digital integration nearly impossible.

  • The “Gen Z” Gap: Younger members expect a “mobile-first” experience. The absence of a high-quality app leads to high member churn and an aging, shrinking borrower base.

  • Manual Loan Friction: Without modern software like Loanance, loan applications are often paper-heavy and manually reviewed. This results in approval times of 48–72 hours, whereas competitors offer “instant” decisions.

  • Operational Inefficiency: Staff spend the majority of their time on manual data entry and document verification rather than high-value member advisory roles.

  • Competitive Disadvantage: Agile fintechs and large commercial banks are aggressively targeting the “socially conscious” lending market, threatening the unique market share of cooperative banks.

  • Regulatory Compliance Pressure: Keeping up with evolving FCA (UK) and Central Bank reporting requirements is labor-intensive without automated, integrated compliance modules.

Solution: The Finalatix Solution: Digital Modernization for Credit Unions

  • Loanance Engine Deployment: We replaced slow, manual back-office workflows with the Loanance lending engine, creating a fully automated credit lifecycle from initial application to final collection.

  • Custom White-Label Mobile App: We developed a high-performance, brandable mobile application that provides members with a modern, “neobank-style” experience for balance checks, fund transfers, and account management.

  • Instant “In-App” Loan Applications: By linking the mobile front-end directly to the Loanance core, members can submit loan requests in under 2 minutes, shifting the credit union from “slow” to “instant.”

  • Real-Time Credit Scoring Integration: We integrated the system with Credit Scoring APIs, enabling the automated pulling of credit scores and financial histories in milliseconds to drive instant decision-making.

  • Automated Risk Decisioning: Utilizing the Credit score data, we built custom logic that automatically tiers applicants based on risk, ensuring loan terms and interest rates are perfectly calibrated to the member’s profile.

  • Biometric KYC & Document Uploads: The mobile app features integrated biometric identity verification and secure document scanning, eliminating the need for members to visit a physical branch for “paperwork.”

  • “Soft Search” Eligibility Checks: We implemented a “Soft Search” feature in the app, allowing members to check their loan eligibility without impacting their credit score, increasing trust and application volume.

  • Legacy Middleware Connectivity: Our specialized Dev teams built a bespoke middleware layer that ensures the new digital tools “talk” seamlessly to the institution’s existing legacy databases.

  • Compliance & Fraud Prevention: The solution was pre-configured to meet FCA (UK) and Central Bank standards, featuring robust fraud detection by cross-referencing app data with global bureau databases.

Results

A transformed, secure, and fully integrated Lending ecosystem that effectively optimised and automated the credit process for our customes target segment