The competition for new loans is fierce and the way to best service borrowers is changing at a rapid pace. When borrowers are looking for a new loan, they're increasingly searching online rather than walking through your doors for a face-to-face meeting. In fact, according to the results of Accenture’s 2021 Global Industry Outlook Survey, 50% of consumers worldwide now use a mobile app or website to connect with their financial institution at least once a week, up from 32% prior to the pandemic, with in-branch transactions falling 30-40% following pandemic lockdowns.
Financial institutions need to connect their invaluable protection products with potential borrowers. It is an excellent way to maximize loan revenue. But, with more loan servicing taking place in a remote environment with more options than eve, how do you effectively educate borrowers? When consumers are searching for a new loan, a simple Google search puts them clicks away from your competitors. For instance, the search term “car loan” yields more than 600 million results. Consumers are seeking the quickest and most convenient option and in a digital environment, that means the fewest clicks.
Increase Loan Acquisition Rates with Rate Reset
Your financial institution needs the right tools to attract borrowers in a digital environment, and while the knee jerk reaction might be to develop an SEO friendly webpage or invest in a marketing list, it takes more to stand out. To complicate matters, it can feel like there’s a new competitor every day. To boost loan revenue, FIs need to venture beyond the bare minimum of “what everyone else is doing.” That’s where Rate Reset comes in.
Rate Reset is a first-to-market digital instant pre-qualification solution that makes loan originations as simple as clicking a few buttons. In fact, it’s called “The Button” because it’s just that easy.
With Rate Reset, consumers receive an instant decision with loan terms that don’t impact their credit score, and the lending institution only pays for high intent consumers who pre-qualify themselves. This solution provides the seamless instant gratification consumers are seeking and empowers financial institutions to lift loan acquisition rates without spending significant staff time and resources that are already limited. In fact, a study done to evaluate the effects of the pandemic on employees showed that financial services industry workers reported the second-highest level of job stress and sleep disorders behind the tech industry workers with employee motivation dropping 32%. Alleviate the stress of securing loans for both employees and members with the help of Rate Reset.
Watch "Getting in Front of Borrowers in the Amazon Era" to learn more about Rate Reset and how to:
- Boost loan acquisition rates with self-serve, digital pre-qualification tools
- Increase protection product revenue by offering the right products for each borrower
- Recapture missed opportunities with direct-to-borrower marketing campaigns
Maximize Loan Revenue with a Protection Product Strategy
With today’s interest rates, a typical used car loan generates moderate interest, making non-interest income increasingly more critical. This is where protection products enter the conversation. To meet the needs of more borrowers, financial institutions need a diverse set of products that offer supplemental protection:
- Debt Protection
- Guaranteed Asset Protection (GAP)
- Mechanical Breakdown Protection (MBP)
- Vehicle Protection Plan (VPP)
- Depreciation Protection
These are complex products. It is challenging enough to conduct this conversation in a face-to-face environment, so when you’re considering tactics for remote selling, education is an important piece of the puzzle. Your digital communication plan should be designed to recapture missed opportunities post-close using marketing campaigns that span different channels including video, text, and email. Even better, if you can start educating consumers before they purchase a vehicle, they’ll be better prepared to participate in a conversation about protection products during loan onboarding because they’ll already understand the value.
To learn more and to see Rate Reset technology in action, watch the webinar:
If you’d like to speak with your Allied representative about these solutions, please fill out this brief form.