Digital Lending Gets Smarter: TruStage Modernizes Lending Protection with Simplified, Real-Time Solution

TruStage Digital Lending has introduced enhancements that make opting into payment protection easier for borrowers and their financial institution. 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,” said Corrin Maier, VP Lending Payment Protection at TruStage.1 “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.”

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 financial institution.

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. Once a selection is made, payment protection is automatically integrated into the credit union loan paperwork, eliminating additional logistics for both the consumer and loan officer. The entire process is also available in Spanish for users who have Spanish language set within their browser.

“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. “Now, it’s seamlessly built it into the final agreement, providing greater peace of mind and protecting borrowers and financial institutions, should the borrower experience an unexpected hardship that impacts their ability to pay.”

According to the National Credit Union Administration (NCUA), total loans outstanding at federally insured credit unions are $1.65 trillion.2 TruStage already has relationships with 93% of credit unions nationwide 3 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 new process will be available at more than 300 credit unions by the end of the year with the intention to expand.

With TruStage Digital Lending, credit unions can offer faster, more integrated payment protection solutions, helping safeguard both borrowers and institutions.