InterSystems Corporation announced FORUM Credit Union has reported a major leap in consumer indirect car loan volume with a new lending system built on InterSystems` Ensemble universal integration platform.
InterSystems develops and markets Ensemble and the CACH'E post-relational database. Ensemble-based integration projects are being rapidly deployed in scores of organisations worldwide.
With assets of $861 million and currently serving about 83 000 members, Indianapolis-based FORUM is in the top 2% of credit unions nationwide. Combining the Ensemble-based Total Account Processing System (TAPS Enterprise Lending) application from FORUM Solutions and indirect lending via www.DealerTrack.com, FORUM has achieved a dramatic increase in loan volume in just a few months, according to Doug True, FORUM Senior Vice-President, Lending and Technology.
"We`ve processed more than $56 million in new loans through the end of May...that`s a 128% increase over the same period in 2004," he said.
FORUM began receiving loans through www.DealerTrack.com, a Web-based service that automates the loan application process for automobile dealers, in February.
"We knew in just eight weeks that we were getting a major return on our technology investment," True said. "Dealers are now receiving answers on loan applications in less than seven seconds compared to the several hours typically needed when the loan is processed via fax."
Rapid processing, business intelligence
"We recognised that faster car loan processing and new business intelligence would be key to significantly increasing new loan revenues and achieving major business growth," True said. "Ensemble provides the high performance that enables TAPS to process loans rapidly," he continued. "In addition, Ensemble makes it possible to automate the business rules used to identify loan definition characteristics as well as trends that identify good loans versus those that may have to be written off. That gives FORUM a major competitive advantage over most competitors."
Ensemble-based TAPS also enhances the ability to rapidly review loans when human intervention is appropriate. "Ensemble`s workflow component routes loans to the right underwriter based on limits and special conditions and the underwriter gets back to the dealer with a decision in minutes rather than hours," True explained. "We`re getting very positive feedback from the dealerships because of our ability to render exceptional service very quickly."
Building on success, FORUM implemented Ensemble-based TAPS for direct lending in early May. By month-end overall consumer loan originations grew by 68% over May 2004. "It`s highly gratifying to see how rapidly FORUM is realising quantifiable benefits and quick return on their Ensemble investment," said Trevor Matz, InterSystems Managing Director, Ensemble. "We look forward to continuing to work closely with FORUM as they leverage Ensemble`s innovative technology to reach, and surpass, their business objectives."
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