A Three-Part Holistic Strategy for Loan Marketing Success

By Rachel Stephens05.14.2018

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 education.

What is driving the rosier outlook? Consumers are generally positive about their financial situations with consumer confidence reaching 100.7% in October 2017. Strong job growth and improved business conditions are also fueling consumer spending (Consumers and the Economic Outlook – US – January 2018).

In addition to their increased economic confidence, consumers are more trustful of nontraditional channels (i.e., digital) to purchase loans and other products. These disruptors contribute to increased lending competition, propelling financial institutions to be more resourceful in identifying, targeting, and acquiring creditworthy consumers.

Why a Holistic Approach to Marketing Makes Sense

To generate sustainable loan growth today, financial institutions must rethink how to communicate with potential borrowers and look beyond conventional, seasonal push-marketing tactics and focus on strategies that engage prospects and account holders, and achieve lending goals.

You can effectively compete for your share of consumer loans with a three-part strategy that includes reactive alerts, proactive engagement, and quality customer experiences:

1. Set up an alerts program to receive notifications from multiple credit bureaus whenever a credit inquiry is submitted for your account holders. Using all three credit bureaus is best, as doing so will provide 75% more coverage, according to Harland Clarke client data.

Sixty-percent of all loan shoppers will commit to a loan within a week of a credit bureau inquiry, according to Harland Clarke client data. Monitoring these inquiries and then countering with a quick, preapproved offer via the channel to which shoppers are most likely to respond—whether via mail, email, or phone—will help you stay one step ahead of the competition and win market share.

2. Adopt a turnkey program 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 account holders 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 customer experiences that can strengthen account holder loyalty, reduce attrition, and extend your brand.

Rachel Stephens is product manager, marketing solutions, for Harland Clarke, a CUNA Strategic Services alliance provider. Reprinted from CUNA News.