Loan Generation Marketing A program that pinpoints and connects you with your best loan opportunities
What if you could expand your lending tactics with greater precision and professional skill? With CUNA Mutual Group s Loan Generation Marketing program, you can identify your credit union s best loan opportunities and connect with those members by sending the right message at the right time. Designed to both recapture loans and acquire new ones, these turnkey direct marketing campaigns target only prospects most likely to borrow, based on member data and prescreening. With 91% of consumer credit being extended outside of credit unions today, this is your opportunity to reach out to the right members at the right time and improve your chances of getting their loan. 1 Developed in partnership with Ser Technology, the Loan Generation Marketing program is an effective way to help your credit union deliver exceptional growth in loan volume, interest income, and payment protection sales. In the past five years, our Loan Generation Marketing program generated over $3.3 billion in total value of booked loans for our credit unions. 2 It completely disproved common wisdom that people don t read their mail if you give them a compelling reason they do. On numerous occasions, we had members walking in the door with the letter in their hands asking to transfer their loan. Nearly 500 members obviously did read their mail. Greg Keller, Loan Manager, on the success of the Auto Loan Recapture Program APCO Employees Credit Union Birmingham, Alabama $2.4 billion assets; 70,000+ members 1
The Loan Generation Marketing program tells you which of your members is qualified for specific types of loans and therefore most likely to respond to your offer. Data and prescreening increases your chances of bringing in loans with strong balances, competitive rates and quality credit scores. Loans generated through the Loan Generation Marketing program are quality loans. On average they feature: 2 1 2 3 4 8-10% of all booked loans Balances of $20,000 Interest rates of 4.28% Credit scores of 740 Loan Generation Marketing Campaigns Include: Auto Auto Loan Recapture Next Car Purchase Universal Auto (Recapture and Next Car Purchase) Home Home Equity Recapture Home Equity Acquisition Mortgage Mortgage Recapture First-Time Home Buyer Credit Cards Credit Card Recapture Credit Card Acquisition Personal Loans CUNA Mutual Group Loan Generation Marketing 2
The right marketing campaigns for the right targets at the right time Turnkey campaigns that include everything you need, from design to mailing Beyond just enhancing your loan portfolio, Loan Generation Marketing campaigns help strengthen relationships with your members, provide multiple cross-sell opportunities and increase the likelihood of members coming to you for future financing. In addition, each campaign incorporates Fair Credit Reporting Act (FCRA) and Fair & Accurate Credit Transactions (FACT) compliant processes and disclosures. Auto Loan Recapture Don t lose any more loans to auto dealers and other financial institutions! We help you recapture lost auto loans with Auto Loan Recapture an easy-to-administer, costconscious and results-oriented campaign. The Auto Loan Recapture campaign uses a credit prescreen process to identify members or potential members who have acceptable credit (as defined by you) and who recently financed a vehicle somewhere other than a credit union. Members meeting prescreen criteria receive pre-qualified offers to refinance their loans with your credit union Offers are customized to include your specific terms and logo; rate offers can be structured to coincide with risk-based pricing You receive detailed offer reports to facilitate proactive follow-up and results tracking For every dollar a credit union spends on the Auto Loan Recapture campaign, they see an average of $6 in interest income and an additional 8% in overall loan volume 2 Next Car Purchase Auto loan originations rose to their highest level since 2007 in the 3rd quarter of 2013. 5 Are you getting your share? The Next Car Purchase Campaign helps you do just that by targeting creditworthy members with the greatest likelihood to be in the market for their next vehicle. Using a credit prescreen process we identify members who have acceptable credit as defined by you, and financed a vehicle somewhere other than a credit union more than 25 months ago Members meeting prescreen criteria receive pre-qualified offers to finance their loan with your credit union You receive detailed offer reports to facilitate proactive follow-up and results tracking Universal Auto Campaign Use our Universal Auto Campaign to cover all your bases. This combination of both the Auto Loan Recapture campaign and the Next Car Purchase campaign connects you directly with members who ve demonstrated, through trigger events, that they may be in the market for a new car or to refinance their current auto loan. 3
Credit Card Use this campaign to reward creditworthy members with attractive credit card terms and conditions or offer a way to pay off their high-interest credit card debt. Tiered-rate campaigns let you target members with Platinum, Gold or Classic offers based on credit score Marketing flexibility allows you to include points programs and transfer balance minimums or maximums Prescreening identifies members who qualify based on a history of good credit and responsible management of revolving credit Personal Loans Looking for a way to increase your loan portfolios, while being flexible to the needs and desires of your members? Consider a personal loan campaign. This campaign allows you to incorporate revolving debt utilization ratio Incorporates tiered offers based on credit levels to help a broader range of members while controlling portfolio risk Home Equity Loans A campaign that targets members qualified for and most likely to take out a home equity loan/line of credit, or who ve taken one out with another institution. Mortgage Recapture Give members struggling with high-interest or adjustable-rate mortgages the relief they need. An excellent way to become your members preferred financial institution Typically run as an annual or semi-annual campaign First-Time Home Buyer Reach out to young creditworthy members who don t currently have a mortgage and you could establish a lifetime relationship. An excellent way to demonstrate the credit union difference by helping firsttime buyers avoid predatory lenders Typically used for members ages 24-40 (choose the age range that works best for your credit union) Maximize Results With Multiple Campaigns Our marketing team will consult with you to create a personalized loan generation plan and time your mailings for optimum impact. Advance planning lets you optimize staff resources and focus on meeting members needs Multiple campaigns entitle you to significant savings within a calendar year Lets you reach out to members who financed their loan/line of credit with another financial institution because they didn t know you offered this product Detailed mailing reports distinguish between home equity loans and home equity lines of credit Prescreening process combines credit quality and trigger events to identify best prospects Attend a webinar on any of the Loan Generation Marketing campaigns by registering at www.cunamutual.com/growloans CUNA Mutual Group Loan Generation Marketing 4
Campaign planning Campaign Q1 Q2 Q3 Q4 Auto Loan Recapture Consistent recapture of vehicles financed elsewhere Next Car Purchase Prime car buying season Credit Cards Transfer holiday balance to lower rate cards Black Friday Holiday shopping season Personal Loans Holiday hangover Tax returns First-Time Home Buyer Prime home buying season Home Equity Acquisition Spring home improvement Home Equity Recapture Recapture spring home improvement loans/lines 5
Re:member Mail All Of Our Programs Include: A targeted credit prescreen to conserve marketing dollars and minimize risk to your portfolio Tailored offer letters that help increase response rates Available Return on Investment (ROI) analysis to track program performance Detailed program reports that aid follow-up Flexible mailing schedules choose from monthly, quarterly, semi-annual, or one-time programs Best practices support to improve success of your program FCRA/FACT Act compliance assistance Prescreening option of Equifax Turnkey process Reach your members in their preferred channel! Send offers by mail or email with Re:member Mail This email marketing program coordinates with our Loan Generation Marketing Direct Mail service. Re:member Mail helps your credit union create, design, and deliver compelling email marketing offers to members qualified for your campaigns. Emails can be sent as a follow-up to a direct mail piece. CUNA Mutual Group s loanliner.com customers can also include in the email a link to your online lending application system. Provide your members with a way to learn about your loan offer and apply for a loan in one simple click. Six Easy Steps Working with our partner, Ser Technology, our program requires few staff resources yet delivers big payoffs for your credit union and your members. 1 4 Ser Technology conducts a prescreen of your membership file based on the credit quality and loan type you determine. You close loans resulting from the targeted offers. 2 3 Together, we develop a tailored marketing strategy relevant to your members. We send targeted offers to your members based on the prescreen criteria. QR Codes To help you target and capture loans from the much sought-after Generation Y, our Loan Generation Marketing campaigns can incorporate Quick Response (QR) barcodes into mailed loan offers for customers that utilize the loanliner.com lending system. Like the links to your loan application included in your emails, these barcodes can be scanned by a smartphone to instantly take users to your online lending application. This allows your direct mail piece to connect your members to the internet so they can apply for a loan with you anytime, anywhere! 5 You follow up with members. This is strongly encouraged for ALR campaigns. 6 We conduct an ROI analysis on your Loan Generation Campaign. CUNA Mutual Group Loan Generation Marketing 6
Connect with members ready to borrow, with the right message at the right time. CUNA Mutual Group s Loan Generation Marketing program can help your credit union grow a larger, more stable loan portfolio. And build stronger member relationships. Contact us today to learn more about our programs and how they can deliver opportunity for your credit union. Or attend an educational webinar by registering at www.cunamutual.com/growloans CUNA Mutual Group insurance, retirement and investment products provide financial security and protection to credit unions and their members worldwide. With more than 75 years of true market commitment, CUNA Mutual Group s vision is unwavering: To be a trusted business partner who delivers service excellence through customer-focused products and marketdriven insight. Visit www.cunamutual.com or call 800.356.2644 for more information. 1 CUNA Economics and Statistics and CUNA Mutual Group, December, 2013. 2 CUNA Mutual Group and Ser Technology, Internal Reports, June 2014 3 Federal Reserve Bank of New York, Household Debt and Credit Report, November 2013. P.O. Box 391 5910 Mineral Point Road Madison, WI 53701-0391 800.356.2644 www.cunamutual.com LG-881805.1-0814-0916- CUNA Mutual Group, 2014 All Rights Reserved.