A big challenge for any financial institution’s direct marketing strategy is to knowing how to be there when your people want a loan. Your best loan prospects might be shopping for cars or a recreational vehicle, or even considering a remodel on their kitchen. But no one at the institution knows it, so they miss the opportunity to provide a lending option via direct mail, email or any other direct marketing product.
And missing the opportunity is exactly what most small financial institutions are doing. According to CUNA Mutual Group, 91% of consumer lending happens outside of credit unions. That means the credit union crowd, they are only capturing 9% of the market. According to the FDIC Community Bank Study in 2012, community banks have fared much better than credit unions in community consumer (and commercial) lending, but their growth has declined (particularly in the asset sizes less than $100 million) while big banks continue to climb in asset size. So they are losing out to the bigger fish.
Most financial institutions present lending options at branch locations, through direct mail or online. These are great options, and they all still have great rates of re-turn for the investment.
But while direct marketing is an effective way to communicate pertinent information about your lending programs and all the great benefits of taking out a loan with you, it doesn’t identify when someone undertakes an active search for a loan.
So how do you do that? How can you be there when your customers want a loan?
It’s called the Loan Generator and here’s how it works:
• Using specific and most current data on your prospects, we pre-approve them for up to eight different loan products.
• The pre-approvals are filed with their account information, standing by so they are ready when your customer is.
• When the customer needs a loan, they simply activate their loan, immediately. They do not have to talk to a representative or go to a branch or fill out an application, they can activate it anywhere—including their mobile device. In that case, they sign the loan paperwork on their screen.
• It is available 24 hours a day, 7 days a week, and 365 days a year. (So any-time, literally).
• You can communicate these pre-approvals though several channels (as the video demonstrates…and you know that because we know you watch that video, right?).
And that’s great and all, but how do you get it in front of them at the right time? Now here’s where this product is brilliant. In this video, you see how a person could activate their loan—while they are still in the store shopping (This video is even shorter than the one above, so if you are only going to watch one, pick this one!):
Can you imagine the return on investment that your institution would reap from an initiative like this? You don’t have to imagine; we’ll tell you (we’re good like that). In multiple documented test cases, The Loan Generator TM has shown loan volume increases from 300% to 500% and a 5 to 1 ROI.
More and more financial institutions are embracing a technology platform that al-lows you to offer pre-approved loans at the point of purchase—when people are nowhere near your branch, their mailbox or their laptop. And, they are increasing their loan portfolio and the return on investment at the same time they are decreasing their acquisition costs.
Are you ready to be one of them?
http://www.ncua.gov/Resources/OSCUI/Documents/MarketingRpt.PDF Page 5
Cuna Loan Generation Brochure