Got Loans? Credit Based Marketing

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Credit Based Marketing allows you to monitor current account holders and acquire and retain profitable ones. And since it is credit based, you determine what qualifications, (FICO scores, etc.) the …

Credit Based Marketing allows you to monitor current account holders and acquire and retain profitable ones. And since it is credit based, you determine what qualifications, (FICO scores, etc.) the prospects require to meet the goals of your financial institution.

Gain the ability to close loans from account holders who may be defecting to your competition. Attract new loan business effectively.

Learn more in this webinar.

http://www.lk-cs.com
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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.

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  • 1. Credit Alerting & Prospecting Leverage Credit Inquiry Data to Improve Acquisition, Retention and Lifetime Value
  • 2. Are You Aware of Losing Loans? • On Average 5% of your Members are Looking for an Auto, Mortgage, HELOC, or Credit Card Loan Every Month! • Competition is More Fierce than Ever. • Gain the Knowledge and Ability to Close Loans From Members When they are Looking to Close. • Make the Right Offer at Just the Right Time! • LKCS Can Assist You in These Needs.
  • 3. LKCS
  • 4. 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.
  • 5. 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.
  • 6. Data Available from All Three Bureaus • Select which of the credit bureau(s) you want to receive data from as the first choice. – 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 # of Inquiries – Benefit from incremental lift by adding additional bureaus.
  • 7. 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.
  • 8. 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!
  • 9. Firm Offers of Credit • When using Credit Bureau data, marketing materials must include: – Indications that the recipient is pre-selected, prescreened, 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.
  • 10. DataFlex Credit Alerting Member Retention and Cross-Sell Credit Alerting
  • 11. 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.
  • 12. 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 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.
  • 13. 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 from Equifax, TransUnion and Experian! – LKCS provides you with a list of all leads and fulfills any direct mail and/or e-mail offers on the same day.
  • 14. 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 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 prescreen criteria. – Provide outbound call lists for your call center to contact these account holders.
  • 15. Credit Prospecting Member Acquisition Credit Prospecting
  • 16. 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).
  • 17. 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, statementbased campaigns and make outbound phone calls to qualified account holder and non-account holder prospects. – And you can utilize our DataFlex reporting engine to measure the results of these campaigns!
  • 18. DataFlex Document Solutions Reporting • DataFlex is an Advanced Financial Marketing, Reporting and Tracking System. • 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. • Use DataFlex to Identify Cross-Sell Opportunities from your Core Processing System with ease.
  • 19. Sample Reports
  • 20. 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.
  • 21. Potential Campaigns – AUTO REFIS • Lease Expirations – Fico Scores 640+ – Exclude auto lates/repo’s – 1-3 months left on their lease • Loan Payoff – Fico Scores 640+ – Exclude auto lates/repo’s – Loan Balance is greater than $5,000 – Minimum $XX savings on monthly payment
  • 22. Potential Campaigns – MORTGAGE REFIS • Home Equity Refi (1st position) – Fico Scores 680-720 (or to 750 if possible) – Mortgage balance below $150K – Less than 50% LTV – No 30-day lates in last 12 months • Conventional – Fico Scores 680-720 (or to 750 if possible) – Mortgage Balance $100K+ – No FHA/VA/reverse mortgages – Age of loan 13-72 months – Up to 95% LTV (higher LTV’s will respond)
  • 23. Sample Campaigns • The Offers: First Time Home Buyers Offer Revolving Debt Reduction Offer Home Equity Offer – Sent to Renters – Qualified by FICO Score and other credit parameters – Sent to Homeowner’s – Available equity over $xx,000 – Revolving debt over $xx,000 – Qualified by FICO Score and other credit parameters – Sent to Homeowner’s without YOUR Home Equity Loan/LOC – Available equity over $xx,000 – Qualified by FICO Score and other credit parameters
  • 24. Sample Campaigns • Direct Mailer First-Time Home Buyers Offer
  • 25. Sample Campaigns Home Equity Offer Revolving Debt Reduction Offer • Personalized Letter or Statement Cover Letter
  • 26. Sample Campaigns First Time Home Buyers Offer • E-Mail Marketing Home Equity Offer
  • 27. 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.
  • 28. 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!
  • 29. Credit Alerting Case Study Results • Average Loan Size of $150,000 • Front-end and back-end revenue of 2.5%-3.0% Quantity Monitored Monthly Mortgage Trigger Rate (1% after pass criteria) Contact Rate Contact to Close Rate Monthly Number of New Loans Revenue Per Month Estimated Credit Alerting Cost Per Month Revenue Per Marketing Dollar Spent 15,000 150 30% 10% 5 $20,625 $1,800 $12 50,000 500 30% 10% 15 $61,875 $3,750 $17 100,000 1,000 30% 10% 30 $123,750 $5,500 $23
  • 30. Thank You! John Dudek VP of Sales LKCS Direct: 815-228-7075 E-Mail: john.dudek@lk-cs.com