Credit Alerting & Prospecting   Leverage Credit Inquiry Data to Improve   Acquisition, Retention and Lifetime Value
LKCS
Credit Bureau Data• Purchasing Actual Data from the Credit Bureaus• All Three Bureaus  – LKCS has relationships that enabl...
Data Aggregation Overview• LKCS multi-sources credit and non-credit data creating a  very unique compilation of data.• Fin...
Credit Prospecting vs. Credit Alerting• Credit Prospecting  – Use credit data PROACTIVELY.  – Market to prospects or exist...
Using Credit Data• Specify Your Lending Guidelines  – Only market to prospects and account holders meeting your    specifi...
Firm Offers of Credit• When using Credit Bureau data, marketing  materials must include:  – Indications that the recipient...
Credit Prospecting   Member/Customer      Acquisition     Credit Prospecting
Credit Prospecting• Available for any pre-screen marketing  campaigns:   –   Auto Loans   –   Mortgages   –   HELOCs   –  ...
Credit Prospecting Campaigns• Extend pre-approved offers of credit to account  holders and non-account holders based on  a...
Potential Credit Prospecting Campaigns• Leverage credit data to generate loans.• These are just a few EXAMPLES.   – Be cre...
Potential Campaigns – AUTO REFIS• Lease Expirations             • Loan Payoff  – Fico Scores 640+              – Fico Scor...
Potential Campaigns – MORTGAGE REFIS• HARP Programs                 • FHA Streamlines  – Fico Scores 640+              – F...
Potential Campaigns – MORTGAGE REFIS• HARP Programs                 • FHA Streamlines  – Fico Scores 640+              – F...
Potential Campaigns – MORTGAGE REFIS• FHA Prospects                • Conventional  – Fico Scores 640+             – Fico S...
Sample Campaigns• The Offers:  First Time Home       Revolving Debt        Home Equity  Buyers Offer          Reduction Of...
Sample Campaigns • Direct Mail   PostcardFirst-Time Home Buyers Offer
Sample Campaigns                            • Personalized Letter or Statement Cover Letter                               ...
Sample Campaigns   Home Equity Offer                               • E-Mail MarketingFirst Time Home Buyers Offer
DataFlex Credit Alerting  Member/CustomerRetention and Cross-Sell        Credit Alerting
Traditional Loyalty Programs• “Onboarding,” matrix marketing and loan  recapture campaigns.• Not based on actual credit da...
Credit-Based Loyalty Programs• React with the RIGHT offer at the RIGHT time.• Gain the ability to reach account holders wh...
Credit-Based Alerts• Here’s What Happens:  – When your account holder applies for credit ANYWHERE,    an inquiry is posted...
Credit-Based Alerts (cont.)• Select which category(ies) of inquiry(ies) you  wish to target• Leads are then pre-screened u...
DataFlex Credit Alerting• We provide credit-based activity alerts from ALL THREE  major credit bureaus.   – Close loans th...
Data Available from All Three Bureaus• Select which of the credit bureau(s) you want to  receive data from  – Even though ...
DataFlex Credit Alerting   Member/Customer      Acquisition        Credit Alerting
DataFlex Credit Alerting• LKCS can provide daily or weekly alerts for  non-members/customers in your area that have had  i...
DataFlex Reporting• Use the power of DataFlex reports to measure  the results of your pre-screen and credit  alerting effo...
Sample Reports
What’s the Cost?• Credit Prospecting  – Pricing depends on several factors including:     • Number of records purchased   ...
What’s the Cost?• Credit Alerting  – Based on number of account holders and/or prospects    screened each month  – FREE Op...
Credit Alerting Case Study Results   • Average Loan Size of $150,000   • Front-end and back-end revenue of 2.5%-3.0%Quanti...
SPECIAL WEBINAR OFFER  Sign up for Credit Alertingby May 15, 2012 and receive a   $1,200 annual discount      ($100 per mo...
Thank You!              Sid Haas  Vice President of Business Development          Direct: 815-220-3904       E-Mail: sid.h...
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DataFlex Credit Alerting and Prospecting

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LKCS is able to provide credit-based prospecting lists and activity alerts from ALL THREE major credit bureaus! Acquire and retain profitable account holders by leveraging tri-bureau prescreen marketing data to identify qualified new prospects, retain account holders at risk of being lost to a competitor, and increase lifetime value by pinpointing cross-selling opportunities in near real time.

See how LKCS clients are building campaigns to generate loans with credit prospecting and alerting.

See how profitable credit alerting and prospecting can be for your institution.

About LKCS:
LKCS provides financial institutions with marketing, graphic design, commercial printing, mailing, internet development, e-marketing, newsletter production, database and one-to-one marketing, statement processing, e-statements and transpromotional marketing services. Our clients have counted on us for unrivaled experience, excellent quality, competitive pricing and superior service for over four decades.

LKCS – We do that.

Published in: Economy & Finance, Business
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DataFlex Credit Alerting and Prospecting

  1. 1. Credit Alerting & Prospecting Leverage Credit Inquiry Data to Improve Acquisition, Retention and Lifetime Value
  2. 2. LKCS
  3. 3. Credit Bureau Data• Purchasing Actual Data from the Credit Bureaus• All Three Bureaus – LKCS has relationships that enable us to provide data from any or all of the three major bureaus. – Not all bureaus have information on all people – it is important to source data from multiple bureaus. – Up to 70% increase in leads when pulling data from three bureaus as opposed to one. – No additional cost to obtain data from multiple bureaus.
  4. 4. Data Aggregation Overview• LKCS multi-sources credit and non-credit data creating a very unique compilation of data.• Financial Services-centric and significant incremental advantages.
  5. 5. Credit Prospecting vs. Credit Alerting• Credit Prospecting – Use credit data PROACTIVELY. – Market to prospects or existing account holders with specific demographic and/or credit-based traits.• Credit Alerting – Use credit data REACTIVELY. – Market to prospects or existing account holders actively seeking a loan elsewhere.
  6. 6. Using Credit Data• Specify Your Lending Guidelines – Only market to prospects and account holders meeting your specific credit criteria (ie – FICO Score, LTV, Credit History, etc.).• Firm Offers of Credit – Credit data can only be used when you are extending credit offers. More on this later… – Must be compliant with the Fair Credit Reporting Act. – LKCS helps with this!
  7. 7. Firm Offers of Credit• When using Credit Bureau data, marketing materials must include: – Indications that the recipient is pre-selected, pre- screened, or pre-approved . – Terms and conditions; eligibility requirements. • Including why credit may not be extended after all. – Minimum dollar amount for which the recipient has been qualified. – Opt-out notice and disclosure.
  8. 8. Credit Prospecting Member/Customer Acquisition Credit Prospecting
  9. 9. Credit Prospecting• Available for any pre-screen marketing campaigns: – Auto Loans – Mortgages – HELOCs – Auto and Mortgage Refinancing – Credit Cards• Pre-screen your existing account holders or reach out to credit-qualified prospects in your area(s).
  10. 10. Credit Prospecting Campaigns• Extend pre-approved offers of credit to account holders and non-account holders based on actual credit score information. – Set criteria to identify recipients that will qualify for a loan offer based on your specific pre-screen requirements. – Send direct mail loan offers, e-mail offers, statement-based campaigns and make outbound phone calls to qualified account holder and non-account holder prospects. – And, of course, you can utilize the DataFlex reporting engine to measure the results of these campaigns!
  11. 11. Potential Credit Prospecting Campaigns• Leverage credit data to generate loans.• These are just a few EXAMPLES. – Be creative – brainstorm campaigns that make sense for your institution.• ADJUST as needed. – Adjust the credit parameters, etc. as needed to fit your lending guidelines and goals.
  12. 12. Potential Campaigns – AUTO REFIS• Lease Expirations • Loan Payoff – Fico Scores 640+ – Fico Scores 640+ – Exclude auto lates/repo’s – Exclude auto lates/repo’s – 1-3 months left on their – 2-3 years left on their lease loan
  13. 13. Potential Campaigns – MORTGAGE REFIS• HARP Programs • FHA Streamlines – Fico Scores 640+ – Fico Scores 640+ – FNMA/Freddie Flags – FHA Mortgage Balance – Mortgage Balance $100K+ $100K+ – No FHA/VA/reverse – Age of loan 13-72 months mortgages – No mortgage lates last 12 – Age of loan 13-72 months months – No reverse mortgages – No reverse mortgages – 85-105% or up to 125% LTV
  14. 14. Potential Campaigns – MORTGAGE REFIS• HARP Programs • FHA Streamlines – Fico Scores 640+ – Fico Scores 640+ – FNMA/Freddie Flags – FHA Mortgage Balance – Mortgage Balance $100K+ $100K+ – No FHA/VA/reverse – Age of loan 13-72 months mortgages – No mortgage lates last 12 – Age of loan 13-72 months months – No reverse mortgages – No reverse mortgages – 85-105% or up to 125% LTV
  15. 15. Potential Campaigns – MORTGAGE REFIS• FHA Prospects • Conventional – Fico Scores 640+ – Fico Scores 680-720 (or to – Mortgage Balance $100K+ 750 if possible) capped at county limit – Mortgage Balance $100K+ – No current FHA mortgage – No FHA/VA/reverse – Age of loan 13-72 months mortgages – No reverse mortgages – Age of loan 13-72 months – Up to 95% LTV – Up to 95% LTV (higher LTV’s will respond)
  16. 16. Sample Campaigns• The Offers: First Time Home Revolving Debt Home Equity Buyers Offer Reduction Offer Offer – Sent to Renters – Sent to – Sent to – Qualified by FICO Homeowner’s Homeowner’s Score and other – Available equity without YOUR credit parameters over $xx,000 Home Equity – Revolving debt Loan/LOC over $xx,000 – Available equity – Qualified by FICO over $xx,000 Score and other – Qualified by FICO credit parameters Score and other credit parameters
  17. 17. Sample Campaigns • Direct Mail PostcardFirst-Time Home Buyers Offer
  18. 18. Sample Campaigns • Personalized Letter or Statement Cover Letter Home Equity OfferRevolving Debt Reduction Offer
  19. 19. Sample Campaigns Home Equity Offer • E-Mail MarketingFirst Time Home Buyers Offer
  20. 20. DataFlex Credit Alerting Member/CustomerRetention and Cross-Sell Credit Alerting
  21. 21. Traditional Loyalty Programs• “Onboarding,” matrix marketing and loan recapture campaigns.• Not based on actual credit data.• Demographic and behavior models used. – Economic Stability Indicator – Vehicle Intend to Purchase – Real Property Data (available equity, etc.)• CANNOT predict the exact timing someone will be in the market for a specific product.
  22. 22. Credit-Based Loyalty Programs• React with the RIGHT offer at the RIGHT time.• Gain the ability to reach account holders who may be defecting to your competition in near real time.• Based on actual credit bureau data.• Deliver a firm offer of credit to cross-sell additional products at the moment a need has been identified.
  23. 23. Credit-Based Alerts• Here’s What Happens: – When your account holder applies for credit ANYWHERE, an inquiry is posted to his or her credit file. – These inquiries are categorized according to the type of financial product the account holder is seeking: mortgage, auto loan, installment loan, credit card or insurance. – Your account holder database is cross-referenced DAILY OR WEEKLY with these inquiries and a “lead” is generated each time there is a match with the credit file.• Respond with a firm offer of credit or insurance immediately after receiving the lead.
  24. 24. Credit-Based Alerts (cont.)• Select which category(ies) of inquiry(ies) you wish to target• Leads are then pre-screened using your qualification criteria – Criteria can be based on numerous attributes including credit score, debt load, etc.• Daily alerts (Equifax and TransUnion) and Weekly alerts (Experian) – LKCS provides you with a list of all leads and fulfills any direct mail and/or e-mail offers on the same day.
  25. 25. DataFlex Credit Alerting• We provide credit-based activity alerts from ALL THREE major credit bureaus. – Close loans that would have gone to other lenders by comparing credit bureau activity each day! – Monitor and identify your account holders DAILY or WEEKLY for auto loan, mortgage, consumer loan and/or credit card inquiries. – Set criteria to identify prospects that will qualify for a loan offer based on your specific pre-screen requirements. – Send direct mail, e-mail and/or statement onserts to contacts whose credit has been checked and meet your pre-screen criteria. – Provide outbound call lists for your call center to contact these account holders.
  26. 26. Data Available from All Three Bureaus• Select which of the credit bureau(s) you want to receive data from – Even though you may prefer to work with one bureau in particular, account holders may be shopping with a company that uses a different bureau – Benefit from incremental lift by adding additional bureaus. # of Inquiries
  27. 27. DataFlex Credit Alerting Member/Customer Acquisition Credit Alerting
  28. 28. DataFlex Credit Alerting• LKCS can provide daily or weekly alerts for non-members/customers in your area that have had inquiries for mortgages, auto loans, credit cards, etc.• Acquire new account holders who didn’t contact you.• Specify credit, demographic and geographic criteria to target qualified prospects in your communities. – Limit to specific counties, towns, zip codes, distance from locations, etc. – Combine credit criteria with demographic information to fine-tune.• Leads are pre-screened against your credit criteria and existing account-holder lists.
  29. 29. DataFlex Reporting• Use the power of DataFlex reports to measure the results of your pre-screen and credit alerting efforts.• LKCS will incorporate any credit based data you utilize into DataFlex to track individual campaign results.
  30. 30. Sample Reports
  31. 31. What’s the Cost?• Credit Prospecting – Pricing depends on several factors including: • Number of records purchased • Demographic selects purchased • Credit bureau minimum charges – FREE List Counts and Estimates • LKCS will run counts at no charge to determine feasibility and cost of your next pre-screen marketing campaign.
  32. 32. What’s the Cost?• Credit Alerting – Based on number of account holders and/or prospects screened each month – FREE Opportunity Analysis • We will review your account holder credit activity over the past 30 days and provide you with the following data: credit activity by inquiry type, state and credit bureau, as well as qualification rates using your specific qualification criteria!
  33. 33. Credit Alerting Case Study Results • Average Loan Size of $150,000 • Front-end and back-end revenue of 2.5%-3.0%Quantity Monthly Contact Contact Monthly Revenue Estimated RevenueMonitored Mortgage Rate to Close Number Per Month Credit Per Trigger Rate of New Alerting Marketing Rate Loans Cost Per Dollar (1% after Month Spent pass criteria)15,000 150 30% 10% 5 $20,625 $1,400 $1550,000 500 30% 10% 15 $61,875 $3,500 $18100,000 1,000 30% 10% 30 $123,750 $5,500 $23
  34. 34. SPECIAL WEBINAR OFFER Sign up for Credit Alertingby May 15, 2012 and receive a $1,200 annual discount ($100 per month) !
  35. 35. Thank You! Sid Haas Vice President of Business Development Direct: 815-220-3904 E-Mail: sid.haas@lk-cs.com www.lk-cs.com

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