By John San Filippo
Finopotamus is pleased to announce the kickoff of the 2025 season of the TechSolutions4CUs podcast. In the first episode, Finopotamus publisher and podcast host John San Filippo talks with Pankaj Jain, founder and CEO of Algebrik about that company’s new artificial intelligence (AI)-powered loan origination system (LOS). The episode premieres Thursday, Feb. 13, 2025.
Jain is the co-founder and former president of Scienaptic AI, a New York City-based fintech that builds AI-based loan scoring and underwriting systems. Jain explains that his experience working with credit unions at Scienaptic highlighted a critical need for a modernized LOS. He found that many credit unions struggled with legacy technology systems that hindered their ability to adapt to the changing financial landscape.
The primary challenges credit unions face with outdated loan origination systems boil down to three main issues:
Integration difficulties
Member experience
Cost
Older systems struggle to integrate with modern application program interfaces (APIs) and services like Plaid, fraud detection tools, and alternative data sources. This lack of integration slows down loan processing, increases manual work, and frustrates members, especially younger, tech-savvy Gen Z members who expect seamless digital experiences. Trying to piece together multiple systems and vendors for things like point-of-sale (POS) lending and digital banking also drives up costs and creates further inefficiencies.
Algebrik’s new LOS seeks to solve these problems by offering a cloud-native, AI-powered platform that’s designed to be flexible and easy to deploy. Jain uses the analogy of a “ready-to-move-in apartment” where everything is pre-configured and connected, from core integrations and bureau access to third-party services like DocuSign, as well as loan pricing engines. This “plug-and-play” approach minimizes the need for extensive IT resources and reduces implementation time, aiming for as little as one month. The platform also utilizes a no-code/low-code workflow engine enabling credit unions to easily customize the system for various loan products without needing specialized technical skills. Further, the cloud-based, multi-tenant architecture allows for cost sharing among credit unions, making it more affordable, especially for smaller institutions.
Artificial intelligence plays a significant role throughout Algebrik’s LOS, impacting both member and employee experiences. For members, AI powers a “digital companion” that guides them through the application process, answers questions, and pre-fills information. AI also handles tasks like document verification, fraud detection (including face recognition and document tampering checks), and dynamic workflow adjustments based on individual member profiles. This streamlined process reduces friction, encourages completion of the application, and ultimately lowers member acquisition costs. For employees, AI automates many manual tasks, like document tagging and account verification, freeing up loan officers and underwriters to focus on more complex cases and member advisory services. This enhanced efficiency allows credit unions to potentially handle increased loan volume without adding staff.
Jain emphasizes that Algebrik’s goal is not to just slightly improve existing processes, but to achieve tenfold improvements in key metrics like loan-to-book ratios, member acquisition costs, and employee productivity, ultimately empowering credit unions to thrive in a competitive market.
You can listen to the episode here.