If you do business in the auto finance space or mortgage lending, the chances are you’ve heard or reported on lending strategies, maximizing revenue, and the many challenges surfacing between.
Financial institutions are dealing with same or similar situations derived from global circumstance. We know in-branch transactions steadily declined since the pandemic shutdowns, and that digital footprints have expanded exponentially with mobile app usage and web-to-connect access for financial institutions. The pace of digital transformation continues to accelerate and won’t be losing steam any time soon.
Now what?
This market calls for financial institutions to meet consumers where they are – customized convenience tailored for the ease of experience and protection of each unique credit-conscious consumer.
Improve economic well-being
Financial institutions are committed to their consumers – existing and potential – putting their best interests at the forefront of important decisions. It’s time to let consumers live their best financial lives, and it can thrive in the palm of their hands.
A digital communication strategy is more than noteworthy, it’s vitally important to the success of your financial institution. Consumers are becoming less concerned with remaining loyal to a specific financial institution. Instead, they’re seeking the quickest and most convenient option and, in many cases, the fewest clicks wins. How does this shape your strategy? Your digital communication strategy should be designed with 1) your consumer in mind, 2) ease of access, 3) top-notch privacy, and 4) informed insights for self-education.
It all comes down to having the right tools to attract borrowers in a digital environment. Financial institutions need to become pioneers of the industry.
3 ways to meet your customers where they are:
- Offer self-serve, digital pre-qualification tools that can boost loan acquisition rates.
A customized first-to-market digital instant pre-qualification solution is what will set you apart from your competitors and the up-and-coming fintechs. - Offer the right protection products to increase your POS revenue.
To better meet the needs of more borrowers, you’ll need to diversify your product offering:
- Payment Protection
- Guaranteed Asset Protection (GAP)
- Auto Advantage Program
- Mechanical Breakdown Protection (MBP)
- Vehicle Protection Plan (VPP)
- Depreciation Protection (DPW)
- Offer a chance at missed opportunities with direct-to-borrower marketing campaigns.
Within your digital communication plan design, be sure to capture missed opportunities through an omni-channel approach which should include video, text, and email. Skip the upsell approach. Instead, engage your consumers in conversations about credit/debt protection products during the onboarding process, not as an afterthought.
It all comes down to knowing your consumers and adapting to the market. Educate in all things finance, develop your omni-channel marketing strategies, and set up digital tools to meet your consumers where they are.
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