3 minutes
USALLIANCE Financial connects consumers to useful loans without affecting their credit score.
Sponsored by Experian
USALLIANCE Financial wanted to make a change. The $1 billion, tech-savvy credit union in Rye, N.Y., needed to find a way to match consumers to loans without subjecting them to a full application process and hard inquiry credit check that would affect their credit scores.
Before the change, consumers were required to submit a full loan application when they showed interest in a line of credit—everything from auto loans to personal loans to credit cards. And if they didn’t qualify, they still had to absorb a potential negative credit score impact because of the hard inquiry. Even more, USALLIANCE Financial loan officers had to complete a lengthy manual decisioning process for each inquiry, which tied up resources.
Defined Goals
USALLIANCE Financial envisioned an online tool that ideally would:
- automatically prequalify member and non-member website visitors for USALLIANCE Financial loan products without a hard inquiry that could affect a consumer’s credit score;
- create a positive educational interaction for applicants discouraged by previous declines or who have little or no knowledge of their credit status; and
- reduce the workload of loan officers by creating efficiencies with the loan application queue.
Simple Solution
Working with strategic partner Experian, the CU evaluated solutions and chose a prequalification product designed for lenders who want to offer consumers insight into qualifying products without going through a formal credit application. Prequalification was successfully implemented through the USALLIANCE Financial website. Now, consumers provide their identifying information and, within seconds, data is gathered, attributes and scores are calculated, decisions are made, and prequalified offers are determined. Product offers—auto loans, personal loans and credit cards—are presented back to the consumer immediately for consideration.
“USALLIANCE has found Prequalification to be an excellent tool to assist members and potential members in finding qualifying loan products before starting the formal application process,” says Kristi Kenworthy, AVP/ecommerce and a CUES member. “It’s become an extension of our member service in helping (members) feel confident to shop stress free.”
To promote the product, USALLIANCE Financial launched a marketing campaign with the tag line: Got 2 minutes? We’ll show you which items you may qualify for with no obligation or risk.
Dramatic Results
Implementing Prequalification has yielded dramatic results for the CU:
- For every 100 loan inquiries, 12 new loans are booked.
- The prequalification pass rate is 45 percent; 41 percent of those consumers formally apply for a loan, with 65 percent booking a loan.
- There is a diverse applicant base; 47 percent of consumers using the solution are 31-51 years old, followed by 29 percent are 51-75 years old, and 24 percent are 18-30 years old.
- There has been increased interest in a USALLIANCE Financial product designed to help improve a member’s credit score.
- Staff bandwidth has increased dramatically.
“At USALLIANCE, the financial wellness of our members is very important,” says Tori Burton, VP/marketing and a CUES member. “Prequalification provides us an opportunity to give them a quick snapshot of their credit status and recommend the type of products needed to help them achieve their goals.”
Experian serves credit unions across all asset tiers with a team 100 percent dedicated to this industry. Beyond credit reports, the company offers data analytics, segmentation solutions, automated decisioning, and digital strategies that help credit unions drive growth, compete through differentiation, and protect against fraud and regulatory risk.
