Targeted Marketing Fetches New Loans to Replace Fee Income

Credit unions exist to provide affordable, responsible financial products to the people who turn to them for their household banking and borrowing needs and, by doing so, then become member-owners of their financial cooperative.

That’s just one reason why credit unions look for ways to lower or eliminate so-called punitive fees, such as those from overdraft and not sufficient fund transactions. It’s also good business in the face of competition from banks, non-bank lenders, and increasingly, fintechs.

But fee income is important. Even though credit unions are not-for-profit, they still need to survive and thrive and keep serving their communities. Growing lending by extending credit to more members is the most obvious strategy for lessening the dependence on fees.

We are, after all, “credit” unions. But today’s consumers have myriad options when it comes to borrowing, and today’s complex digital landscape demands marketing expertise impractical for all but the largest lenders to maintain in house.

So how to target and win more of this business? Ser Tech’s Fetch Marketing platform uses sophisticated predictive analytics to determine who among the creditworthy is most likely to respond to your loan offer and when you can grab their attention.

Ser Tech works with the major credit bureaus and other data sources to apply hundreds of credit attributes, pre-screening likely borrowers, including members with high-interest loans elsewhere leveraging auto loan recapture. Using Fetch, your credit union marketing team can then choose the best channel to reach them, including physical messages through the mail, as well as emails and texts.

Fetch targeted marketing parses your member data to target your specific underwriting requirements, including non-, near-prime and prime borrowers with attractive loan offers that fit their individual needs and risk profiles, as close to the members’ point of decision as possible.

Ser Tech’s credit union clients also use that timely, increasingly intuitive data to offer members credit scores and education through your credit union’s online and mobile banking platforms. Credit education is critical as we consider the average American family is $155,622 in debt, from credit cards to car loans, and inflation will only make matters worse. Credit unions can help these families deal with debt and find financial stability.

Partnerships with other respected providers are crucial to success, for Ser Tech and for credit unions. For instance:

  • CU Direct leverages Ser Tech’s preapproval capabilities for car loans at the dealership
  • CU Student Choice works with Ser Tech Fetch to help refinance student loans with credit unions
  • And Open Lending’s Lenders Protection platform leverages alternate data and is backed by default insurance, so lenders can confidently say ‘yes’ to more car loans for people with imperfect credit

Replacing fee income with interest income is an imperative that can only be expected to grow in the face of more regulatory scrutiny of such fees and consumer awareness in general. Ser Tech’s Fetch Marketing can help credit unions responsibly target existing and potential new members across the credit spectrum with products and services they need when they need them while building your credit union’s loan portfolio.

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