MADISON, Wis.–TruStage said it has introduced key enhancements to the digital lending process by simplifying the insurance experience for both the borrower and their credit union.
According to the company, the updated digital purchase solution gives customers the ability to opt-in to payment protection directly within their loan application, automatically integrating protection into loan documents.
“According to recent data from TruStage, eight in 10 consumers are interested in protecting their loans, but more than half don’t recall being offered payment protection during the loan process,” Corrin Maier, VP Lending Payment Protection at TruStage, said in a statement. “Similar to how travel insurance has become standard when booking a vacation online, we aim to make loan protection just as easy to ensure borrowers are protected during this time of economic uncertainty.”
Helping Borrowers Face Hardship
The company noted that with payment protection, should the borrower face a qualifying hardship, like disability or job loss, the coverage may cancel, reduce or make payments on the covered loan, protecting both the borrower and the credit union.
“The newest technology improvements from TruStage provide borrowers the opportunity to digitally select specific payment protection products for their loan with real-time price estimates and eligibility verification,” TruStage said. “Once a selection is made, payment protection is automatically integrated into the credit union loan paperwork, eliminating additional logistics for both the consumer and credit union loan officer.”
TruStage added that the entire process is also available in Spanish for users who have Spanish language set within their browser.
‘Seamlessly Built In’
“We previously worked with credit unions to embed payment protection education into their digital application with great success, but it was still a manual process for the credit union to actually add protection to the loan,” said Maier said in a statement. “Now, it’s seamlessly built it into the final agreement, providing greater peace of mind and protecting borrowers and credit unions, should the borrower experience an unexpected hardship that impacts their ability to pay.”
TruStage cited NCUA data showing total loans outstanding at federally insured credit unions are $1.65 trillion.
“TruStage already has relationships with 93% of credit unions nationwide and can greatly increase access to loan protection as it brings this purchase experience option to a growing pool of consumers and financial institutions,” the company said.
Ongoing Rollout
The new process will be available at more than 300 credit unions by the end of the year with the intention to expand, the company added
