Accelerate Your Loan Portfolio Growth:Build wallet share and realize ROI—fast

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How critically important are loans to your revenues and profits? For most community financial institutions (CFIs), they’re the lifeblood of the organization. That’s why accelerating loan portfolio growth is such a high priority for so many CFIs. How is your institution performing in terms of loan portfolio growth? Are you on track? Or are you lagging behind your peers? Accelerating loan growth can be a significant challenge when you approach it manually as many organizations do. It can be extremely time-consuming without generating a satisfactory return on investment.

There is a better way—whatever strategies you’ve tried in the past, and whatever types of loans you want to attract. By digitizing and automating your approach, you can build easy-to-implement and more effective loan acquisition campaigns that deliver the results you want. Deploying the right digital tools will help you develop and deliver compelling offers to a targeted list of customers who have the greatest propensity to accept your advice, and then enable you to follow up with them more effectively to close deals more quickly. With faster loan acquisition, you can speedily build wallet share and realize a better return on your marketing investment. Ready to get started? Leverage one or a combination of the strategies described below.

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Westminster Savings Credit Union, with $3.2 billions (CDN) in assets and 55,000 members, is one of Canada’s largest credit unions. Brian Rogers, Senior Vice President, Commercial Operations, and Chief Credit Officer, estimates, “Whereas interest income from loans generates around 50% of revenues at the big banks, the loan-to-deposit ratio of many Canadian credit unions is up around 80%, meaning 80% of revenues are directly tied to their loan portfolio.” That makes loans a driving force behind Canadian credit unions’ profitability.

Solutions For A Top-Priority Challenge

What percentage of your revenues come from loans?

BE A DATA DETECTIVE

All community financial institutions have a wealth of data at their fingertips. This data has the potential to reveal a great deal about their customers. However, what many don’t have are the human resources needed to sift through it manually. It’s a missed opportunity that digital tools can help you address, because they allow you to more efficiently uncover telling details by searching databases inside and outside your organization, including:

• Core banking systems• Loan origination systems• Profitability tools• Automated Clearing House (ACH) reports• Credit bureau reports

Using a business analytics tool, you can mine internal data to see which loans are approaching maturity so you can offer, for example, a loan to purchase a luxury car as customers are poised to pay off their mortgage. You can also mine vast amounts of external data to detect loans your customers hold at competing financial institutions. You can identify regular payments that indicate a mortgage, line of credit, car loan or student loan. You can even check the length of time payments have been made, to estimate the renewal date. In parallel, scanning credit score data can help you identify borrowers with a low risk of default that you’ll want to target. Data point by data point, you can refine your list of customers until you have a well-defined target group primed for your offer.

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However you define your target list, it’s important to reach out to these receptive individuals with a personalized message—and the sooner the better to make sure your offer shows up before your competitors’. Draw on your data sources to gain further insight into your customers’ specific needs and explain how your organization can better meet them. And make sure that your marketing and sales teams closely coordinate their efforts. Often, CFIs operate in departmental silos, but by working together you can maximize the effectiveness of your campaigns.

If you haven’t already deployed a suitable customer relationship management (CRM) system, plan to do so. It’s critical to the successful coordination of marketing and sales activities across your institution. Touch point by touch point, your CRM can help you successfully nurture prospects through the sales funnel to win new business—from outbound campaign delivery, across multiple channels including email, SMS and phone, to timely follow-up with engaged customers. Set the channels and intervals you choose. Then, with one simple click, you can launch an automated campaign that incorporates multiple digital communications and prompts follow-up calls.

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COORDINATEDCAMPAIGNRUN A

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Email marketing is another critical piece of the loan acceleration puzzle that can help you get the most out of your current campaign and build even better campaigns in the future. Why? Because it provides tracking capabilities that can help focus and speed up the sales process—something that’s not possible when you use more traditional channels such as direct mail. Modern email marketing tools can track responses, which is key to closing deals. Who opened the email? Who clicked through to your website? Who replied? Who forwarded it, and to whom? You can quickly qualify leads based on level of interest. And when your email tool is integrated with your CRM system, you can instantly assign the hottest leads to your loan product specialists.

It’s also essential to understand that lending campaigns, like any other, are most powerful when they are not one-off activities. By keeping your institution and your offers front and center with your best prospects, you’ll maximize the chance that customers will consider you when the time is right.

If you do all of this successfully, how big can the impact of a digitized email marketing campaign be? One Doxim credit union customer brought in more than $1 million (USD) in new loans in less than a week. Another recouped its monthly email marketing fees within three hours of launching a campaign. The sky is the limit for you.

TRACK AND FOLLOW-UP TO ENHANCE RESULTS

“You can’t just put something out there and think that people are going to jump on it. You have to follow up on it at least for a month, two months, even three months,” advises Len Shimko, former president and board treasurer at 23,000-member Cross Valley Federal Credit Union.

By pulling business analytics, customer relationship management and email marketing solutions together, you can build a powerful, integrated approach to better meet your customers’ borrowing needs. And it can deliver benefits that go well beyond loan portfolio growth.

“When you reach out to a member who feels the need is relevant, it’s a huge win,” says Blair Wingert, Chief Credit Officer at Prairie Centre Credit Union, which has $593 billion (CDN) in assets and nearly 12,000 members. “It’s [also] a huge step in the relationship-building piece when we can start anticipating and proactively identifying what our customers’ needs are.”

What that suggests is that beyond being good for business, a well-executed strategy to attract additional loans can also help you improve customer experience—and that is crucial in today’s competitive environment. After all, a better customer experience leads to greater brand loyalty, deeper relationships and valuable referrals to a broader network of potential customers.

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INTEGRATE TO HELP ACCELERATE YOUR LOAN BUSINESS

Book a personalized demo and see how Doxim’s innovative suite of applications can help accelerate the growth of your portfolio of mortgages, lines of credit, car loans, student loans or any other type of loan you choose to target.

BOOK A PERSONALIZED DEMO

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Take The Next Step

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Doxim is a leading provider of SaaS-based customer engagement software for credit unions, community banks and wealth management firms. Doxim’s Customer Engagement Platform helps financial institutions transform their client experience, communicate more effectively throughout the client lifecycle and improve cross-sell and upsell activities that drive increased wallet share. The platform addresses key digitization challenges, from automated client onboarding, through improved, personalized communications to anytime, anywhere content access, tailored to a clients’ channel preferences. This eliminates costly, traditional, paper-based manual processes and enables cost-effective provision of an omni-channel experience that delights customers and improves their long-term loyalty.

Find out more at www.doxim.com.

Phone: 866.475.9876 Email: info@doxim.com