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Insight Center Community Bank

Industry knowledge to help you grow your business

Thriving in a Fierce Lending Environment

Consumers are still facing financial challenges. Even so, they must find ways to adequately meet their needs and borrowing money will continue to be an effective means to do so.

With a myriad of options and lenders, the competition for creditworthy account holders remains heated. Ensure that you are prepared to come out ahead with these three strategies for thriving in a fierce lending environment.

1. Identify and respond quickly to loan shoppers

It’s highly cost effective to extend an offer while consumers are shopping. Sixty percent of all loan shoppers will commit to a loan within a week of a credit bureau inquiry.

Monitoring these inquiries and then countering with a quick, preapproved offer via the medium to which shoppers are most likely to respond will help you stay one step ahead of the competition and win market share.

 Companies that execute well on event-triggered marketing can expect their messages to receive five times the response rate of non-targeted push messages.

2. Be proactive and make it easy for consumers to say “yes”

Rather than depending on seasonal campaigns, why not present multiple preselected offers across several lines at once?

Tailor each offer to individual consumer’s creditworthiness, product usage and history. With perpetual prescreen status, consumers are empowered to decide which loans they want and when.

You’ve already said “yes” to them and made it easy for them to say “yes” to you.

3. Stay engaged and show your appreciation

The ultimate goal of every financial institution is to enjoy long profitable relationships with account holders.

  • Engage with them early on
  • Understand their needs
  • Proactively offer solutions that help them reach their goals
  • Communicate with them often
  • Thank them for their business

This level of engagement will go a long way towards earning your institution primary status. In a recent survey, one-third of consumers said they view their main checking account as their most important long-term financial relationship.

By responding quickly, making it easy for consumers to say “yes,” and staying engaged, your financial institution will stand out from the crowd in today’s fierce lending environment.