Reactive alerts, proactive engagement, and quality member experiences can help your credit union compete.
After years of sustained practicality, consumers are borrowing again at a record pace. Many are beginning home improvements, buying new homes and autos, or financing their children’s educations.
What is driving the rosier outlook? Consumers are generally positive about their financial situations, with consumer confidence reaching 100.7 percent in October 2017. Strong job growth and improved business conditions are also fueling consumer spending.
As consumer expectations and spending increase, so does borrowing.
- Consumers added 92 billion in new debt in 2017.
- Total household indebtedness increased 5.2 percent in the fourth quarter of 2017.
- Consumer spending went up by 3.8 percent in 2017—the fastest increase in over a year.
With borrowing on the rise, credit unions must rethink how to communicate with potential borrowers. An “always on” approach makes it possible to reach consumers in all stages of the decision-making process, increasing the likelihood of acquisition and sustained loan growth, but how can credit unions get there?
A Three-Part Holistic Strategy for Loan Marketing Success
In a perfect world, your members would never even think to inquire about a loan from a competing institution, and you’d have the resources to get in front of every prospect. But economic and technological times have changed across multiple channels with myriad borrowing options now available. You can, however, effectively compete for your share of consumer loans with a three-part strategy that includes reactive alerts, proactive engagement, and quality member experiences.
1. Set up an alerts program to receive notification from multiple credit bureaus whenever a credit inquiry is submitted for your members. Using all three credit bureaus is best, as it will provide 75 percent more coverage. Sixty percent of all loan shoppers will commit to a loan within a week of a credit bureau inquiry. Monitoring these inquiries and then countering with a quick, preapproved offer via the channel to which shoppers are most likely to respond—mail, email, or phone—will help you stay a step ahead of the competition and win market share.
2. Adopt a turnkey program. Adopt one that sends multiple loan offers for home equity, auto, credit card, personal and other loans through multiple channels—online, direct mail, mobile, email, branch and phone—to members and prospects who meet specific underwriting criteria to access anytime, anywhere.
3. Create seamless, convenient experiences. Put loan offers at consumers’ fingertips to accept anytime, anywhere. Quickly send offers via direct mail, email, and phone while they’re shopping for loans. You will be creating quality member experiences that can strengthen member loyalty, reduce attrition and extend your brand.
Stephenie Williams is senior market strategist, lending solutions for CUES Supplier member Harland Clarke, Atlanta.