For many financial institutions, the high-rate environment put promoting loans on the back burner. Because we’re now beginning to see loan rates improve and financial institutions return to marketing loans, I asked Senior National Account Manager Colin Walsh for his perspective on all things loan generation.
As loan rates start to improve, do you have any recommendations for clients thinking about promoting loans again?
Start with who you know! Your existing accountholder relationships should be strengthened, so consider how many of these people don’t have loans with you. We can use your accountholder lists for prescreen offers with all three credit bureaus, for instance. Or set up a loan trigger monitoring program so you know when current accountholders are actively searching for loans! With SmartTrack, we can get in front of those active loan applicants with postcards and emails promoting your loan options, so their dollars stay in house.
Data is also key to finding new prospects who can benefit from your loan offers, whether that be through digital marketing or utilizing a new mover campaign to target those who are new to the area.
Are there any loan trends we are already beginning to see again?
Seasonal loans have really grown in the last few years. Think ATVs, RVs and boats for warmer weather and snowmobiles, UTVs and ice fishing shanties for winter months.
Additionally, auto lease buyouts are growing in popularity as people look to keep vehicles they are familiar with and have a financial investment in, rather than buying new at high rates. And because rates remain high for new vehicle purchases, auto refinancing is a great option to consider. image.works can even pull data from all three credit bureaus to find qualified individuals who would benefit from your lower rate!
What loan products do you recommend promoting now and in the upcoming months as rates potentially decrease?
Auto refinancing will remain hot, as will HELOC options. With significant enough rate drops, mortgage refinancing could become a possibility too. However, rates would have to see a drop of at least 2 – 2.5% to make this a viable option for current mortgage holders, in my opinion. Additionally, personal loans and balance transfers are also popular.
Even with a high-rate environment, there are still individuals who need financing. What strategies do you recommend for getting the most success out of your loan campaigns?
A compelling message and a strong offer – these are the first things to attract attention in your marketing outreach to these individuals. If you have the latter, we will create the former! Then, pair that with data to target the right prospects – like renters who are sending pre-buying signals or people who've visited dealerships in the last 30 days and may be shopping for a car.
Ready to make your comeback to marketing loans? image.works can help! Reach out to your account manager to learn more about our loan generation capabilities or to get started on your next project!