We helped credit union Kodumaa Kapital improve client engagement, credit screening and profitability.
Kodumaa Kapital is a regulated credit union in Estonia. Kodumaa offers deposit and lending solutions to consumer and SME segments and has approximately EUR 6m of member assets under management.
Credit Unions face high competition from traditional banks and challengers who target all or part of the member relationship. In parallel, there is a requirement to improve member engagement and back office efficiency at a time when legacy systems act as a barrier to change. Historically operating on a manual basis, Kodumaa approached Union to provide such a digital solution while maintaining a human touch.
Full Stack Solution
Kodumaa integrated three Union solutions to create unified, front-to-back infrastructure which supports full process automation of onboarding, lending and reporting. The entire solution is hosted by Union.
Union I platform is utilised to manage client data, transactions and relationships in a single place and send regular messages and repayment reminders to build engagement. Portfolio views on deposits and loans, including NPLs, supported by detailed financial and activity reports provide management with real-time insights on performance and asset:liability management. Smart automation features such as product configuration, automatic interest calculation, statement issuance and integrated documents and help keep the administration burden low.
Union I comply is utilised to validate new member requests and provide accurate measures of debt capacity and credit risk for loan applications. Internal data is integrated with external credit bureau, state and AML registries to ensure decisions are based on a robust, real-time dataset. We worked closely with management to ensure that screening models were accurate, reliable and met policy requirements for specific client and credit product profiles. A detailed audit trail including timestamps was provided for each transaction.
Union I online is available for members to self-service 24/7 including checking balances, requesting solutions and messaging. Kodumaa front-line staff receive a UX optimised interface, making it fast and effective to serve members.
Making It Easy
Undertaking digital transformation may appear daunting however our expertise helped Kodumaa develop the optimal approach. Plans were developed together, priorities agreed and solutions implemented smoothly with full training and service support.
Digital, With A Human Touch
Kodumaa has developed a lean approach with maximum bottom line impact thanks to smart automation of complex tasks, reduced losses to NPLs and fraud, and SaaS licensing. Increased surpluses are available for distribution to members or to enhance the value proposition further.
In a sector where the human touch matters, members are empowered to utilise branch and digital channels, often utilising a combination of both. Management receives deep insights on member needs and performance, with their time freed-up to manage the business in a proactive manner.